Scheme of the organizational structure of a credit organization. Hierarchy and powers of divisions of a credit organization.

Typical organizational structure of a credit organization

Credit organisation- this is a legal entity that, in order to make profit as the main goal of its activities, on the basis of a special permit (license) of the Bank of Russia, has the right to carry out banking operations provided for

Types of credit institutions:

• Bank is a credit organization that has the exclusive right to carry out the following banking operations in total:
  • attracting deposits of funds from individuals and legal entities,
  • placement of these funds on your own behalf and at your own expense on the terms of repayment, payment, urgency,
  • opening and maintaining bank accounts for individuals and legal entities.
• Non-bank credit organization is a credit organization that has the right to carry out certain banking operations provided for. Acceptable combinations of banking operations for these organizations are established by the Bank of Russia.

Branch of a credit institution- this is its separate division, located outside the location of the credit organization and carrying out on its behalf all or part of the banking operations provided for by the license of the Central Bank of the Russian Federation issued to the credit organization. In accordance with , a credit institution (branch) has the right to open internal structural divisions (VSP)— additional offices, credit and cash offices, operational offices, operational cash desks outside the cash desk. Additional office (DO)– can carry out all banking operations or part of them, provided for by the license of the Central Bank of the Russian Federation for the credit organization or branch that created it. Opens only in the territory where the Bank itself or its branch is located. Operations office (OO)– has the right to carry out all or part of the banking operations provided for by the license issued to the credit organization to carry out banking operations (the regulations on the branch). Can be opened in any territory. In the event that the PA is located outside the territory subordinate to the territorial institution of the Bank of Russia that supervises the activities of the credit institution (branch) opening an operational office, then it not entitled:

• carry out transactions (including transactions at the expense of clients) for the purchase and (or) sale of foreign currency, both in cash and in non-cash form on the interbank and exchange foreign exchange markets;
• carry out transactions (including transactions at the expense of clients) for the purchase and (or) sale of securities and other financial assets related to the assumption of financial risks by the credit institution (there is an exception)
• provide loans (credits) to credit organizations, as well as place deposits and other funds in credit organizations;
• receive loans (credits), attract deposits and other funds from credit institutions;
• open and maintain correspondent accounts of credit institutions (branches);
• open correspondent accounts with credit institutions (branches) to carry out transactions;
• issue bank guarantees;
• carry out acceptance and (or) avalization of bills.

Credit and cash office (CCO)— carries out operations to provide funds to small and medium-sized businesses and individuals, as well as to return them (loan repayment), provides cash services to legal entities and individuals, accepts cash currency of the Russian Federation and foreign currency for transfers on behalf of individuals persons without opening a bank account (BOS transfers) also have the right to carry out transactions with foreign currency and checks established by. Can be opened in any territory. Performs only those operations listed that are provided for by the regulations on the branch. Operational cash register outside the cash desk (OKVKU)- has the right to carry out cash transactions with legal entities and individuals, carry out BOS transfers, and also has the right to carry out transactions with foreign currency and checks established by. OKVKU can be opened in any territory. WE RECOMMEND: If a regulatory document of the Bank of Russia states that an administrative document is issued by a Credit Institution, then this means that the order/instruction/regulation must be developed and issued by the State Administration for all its VSP and Branches, if it is written that the administrative document is issued by a Credit Institution, in the Branch/VSP, respectively, everyone develops and publishes it themselves. In practice, it is better for the main regulations and administrative documents relating to the organization of work in general to be published in the Civil Defense, in order to ensure uniformity of work. If administrative documents concern the appointment of responsible persons or determine the composition of commissions, then Branches and VSP can appoint employees independently.

There are many alarming aspects in the current state of the Russian banking system. This includes the excessive consolidation of the main players and the desire of large foreign bankers to leave the market. And the total number of banks in Russia is decreasing. But the remaining players have placed their bets on development and are gradually increasing their presence in the regions.

The professional banking resource Bankir.ru conducted a study among Russian bankers on the principles of development of territorial networks of banks. In their opinion, the industry is returning to the stage of active growth. The reviving retail banking requires expansion. Credit institutions today need personnel, space, and real estate. Everyone has different strategies for building a branch network - from aggressive to conservative. However, it is obvious to the market that banks are targeting growth and capturing new territories.

Where to go

Among the most active players are representatives of the largest Russian state banks and regional bankers who are not ready to give up their positions in local markets that are well known to them. For example, Vyacheslav Vorobyov, Deputy President - Chairman of the Board, Director of the VTB24 network department, said: “In 2010, we opened 55 offices, 90% of them in large cities with a population of more than 500,000 people.” The size of VTB24’s sales network in the most capacious Moscow market has reached 90 offices. The largest increase in the VTB24 network in 2010 was in Moscow, where the bank opened 13 offices. There are five offices in St. Petersburg. There are four offices each in Yekaterinburg, Samara, and Chelyabinsk. “At the beginning of this year, we have 530 branches in 203 cities,” noted V. Vorobyov. “Now our services are available to 71% of the urban population of Russia in 69 regions.” VTB24 has grandiose plans for this year - to open 70 points of sale.

Among the energetic regionals is Express-Volga Bank. At the end of last year, the number of its branches doubled - from 30 to 60, and in the first half of this year the target was 100 branches. Another regional SKB-bank has achieved all-Russian coverage. Today, SKB Bank is present in 96 cities of Russia and 35 constituent entities of the Federation. Pervobank has also adopted a new network expansion strategy. Today it serves clients in 33 offices in nine cities of Russia: Samara and the Samara region, Moscow, St. Petersburg, Ulyanovsk, Orenburg and Tarko-Sale (Yamalo-Nenets Autonomous Okrug).

It is also worth noting Metcombank, OTP Bank, First Republican Bank, Moscow Renaissance Credit.

Strategies for the development of bank offices depend on the “origin” of the banks. As a rule, regional credit organizations first develop within their region, and then expand to neighboring regions, focusing primarily on regional capitals and then on large cities. Large banks that formulate their strategies from Moscow immediately focus on cities with a population of over a million, and subsequently on the periphery.

Development paradox: the priority in choosing a direction for all players becomes the presence of the economic potential of the region, and not the presence/absence of banking services. That is, bankers are ready to compete with each other for an economically active region, and not to build new areas with undeveloped infrastructure.

Many bankers agree with this opinion. For example, according to Oleg Shemyakov, head of the marketing department of Interkommerts Bank, regions with low development of banking services are not very interesting to the bank. After all, the payback period for a branch in underdeveloped regions often stretches for several years.

Another important development factor is the presence of strong managers in the region. Priority is given to regions in which specialized higher education is well developed.

The Central and Volga Federal Districts lead in the number of banking offices. Based on banking strategies, it is unlikely that rapid development should be expected in the most backward North Caucasus and Far Eastern districts. The Siberian, Ural, Southern and Northwestern federal districts look more promising.

What units are needed

Bankers are again starting not from market expectations, but from their own development strategy. Large banks prefer to open regular branches. This allows you to be closer to the client.

Regional banks work in a more targeted manner. For example, Svyaz-Bank is increasing the number of sales points to be closer to clients - individuals.

VTB24 is expanding its network for the same reasons. In all regions where VTB24 operates, “large formats” are already open. There are 120,000-140,000 residents per sales office. This is much better than three years ago. Now the focus is on greater network density in cities with high potential. If necessary, VTB24 creates additional backup points in areas where a large client base has already been formed, and the existing office is overloaded. The main formats opened in the last two years are standard branches with four to six workplaces, with an area of ​​150-250 sq. m. m. At the same time, the format of the standard branch has changed significantly: the client area and the 7 x 24 area have expanded, and the number of ATMs has increased significantly.

Medium-sized banks use all network formats, based on business objectives in a given territory, development prospects and achieved results. For example, PRB Bank began to develop a regional network by opening full-fledged branches. In the process of development, effective and successful branches were supplemented by a network of branches, and ineffective ones were transformed into “lightweight formats” of business - operational offices. Express-Volga Bank believes that the optimal format of a classic additional office. This same format is also called the most promising by VUZ Bank and Chelyabinvestbank. SKB Bank also considers an operational office to be a completely suitable format. Primsotsbank prioritizes an additional office and a branch.

B&N Bank advocates a more flexible approach: a reasonable compromise is required in building the network. It all depends on your specific goals. If the goal is to expand the network in the same city or subject of the Russian Federation, then an additional office. If the goal is to enter new constituent entities of the Russian Federation, then through a representative office, which will subsequently develop into either a branch or an operational office.

However, today the undisputed leader among all banking formats is additional offices, with operating cash desks in second place. Meanwhile, it is in these segments that the number has been declining over the past six months. At the same time, the number of credit and cash offices and operational offices is growing.

What to do if the calculation did not come true?

The open banking division is not up to the required level of efficiency. What to do? Firstly, it can be closed (however, bankers use this method less and less), secondly, it can be sold, and thirdly (by the way, this method is now the most relevant), the division is either transferred or relaunched in the same or a different format . It happens that a point is ineffective for a long period, and all business development methods do not work for it. In this case, the PRB, for example, is trying to improve the economy by bringing costs to the size of the business, changing the format of the territorial division (a branch turns into an operating office, cash register company, etc.). The extreme step is when bankers close ineffective divisions.

There are known stories of not closing, but relocating a division dictated by the development of the banking business in a particular region. For example, BKF Bank closed a branch in Krasnoyarsk last year, but opened one in Novosibirsk.

There are also more optimistic tasks: an existing point is temporarily closed in order to be reformatted into the next format in the hierarchy. SKB Bank remembers this story: in Krasnoyarsk, the representative office was transformed into an operational office. Representative offices have fewer powers and can carry out a limited number of transactions. Having received convincing results of work in this city, SKB Bank decided to transform its representative offices into full-fledged offices. Smolensky Bank temporarily suspended the work of one of its offices to expand its functionality. Before the transformation, there was only one cash desk available to customers and only one operator could help them carry out the necessary banking transactions. Over time, queues began to appear; there were clearly not enough specialists to service everyone who applied to this office.

In connection with the active reduction in the total number of banks and the redistribution of their assets and divisions among the remaining players, another reason for the closure of banking divisions has emerged - internal competition. Thus, the branch network of Solidarnost Bank, after its merger in 2008 into a group with Potential Bank (Tolyatti), accepted for reorganization, doubled. Some additional offices of the two banks began to compete on the same sites. Therefore, in 2008-2010. The branch network was systematically optimized; five points had to be cut.

When it comes to closing divisions, VTB24 prioritizes cost optimization. During the crisis, this approach was the most reasonable. As a result, 34 offices that did not meet the format of a retail bank were closed. However, VTB24 acted not only using harsh methods. For a third of offices, VTB24 reduced the rental rate by almost 20% and continues to negotiate with landlords to reduce rates. The total savings from the reduction in rental rates on an annualized basis amounted to almost 100 million rubles.

In general, the cost of renting premises for banking divisions is becoming an increasingly significant factor. In some cases, especially during a crisis, it is high rent that can lead to the closure of an additional office.

Number of bank offices in federal districts of Russia

Structure of territorial divisions of banks

"Calculations and operational work in a commercial bank", 2012, N 5

In conditions of fierce competition, the modern banking sector needs to optimize its organizational structure and build a more flexible management system. In this regard, one of the most common trends in recent years in the development of the regional banking sector has been the transformation of branches of large commercial banks into operational offices, that is, the construction of a so-called matrix management structure. The topic discussed in the article is relevant for banks that have a wide branch network, focused both on the development of retail business and on servicing a limited number of legal entities.

Some large banks, such as TRUST, VTB24, Alfa-Bank<1>, Raiffeisenbank<2>and Promsvyazbank<3>, this procedure has already been completed and continues to move towards centralization. Others, for example VTB Bank<4>and not very large banks (Otkritie Bank, Russian Capital), are just starting this procedure.

<1>Alfa-Bank began the process of converting branches into operational offices back in 2008. The need for changes in the bank's structure was dictated by two main factors - changes in banking legislation and the introduction of the most modern and multifunctional IT platform that unites all the bank's regional clients.
<2>The Supervisory Board of Raiffeisenbank decided to close 11 branches during 2010.
<3>48 branches of Promsvyazbank were transformed into operational offices.
<4>As part of the reform of the VTB regional network, 7 basic branches, 80 operational offices, 17 additional offices and 3 operational support centers will be created.

Obviously, not only unprofitable branches are closed (transformed), but also profitable ones, as a rule, if the directions of delegated functions change due to a change in the policy of the parent bank or if the programs for which the branch was opened did not bring the expected result.

Branches are being converted into operational offices, thus switching to a new management system. The most modern and effective matrix structure is selected, which is designed to standardize service throughout the network, minimize back-office functions at points of sale through centralization, save costs and concentrate locally on sales and quality of service. Thanks to these transformations, the bank will be able to optimize the management of all resources and provide clients with new opportunities: the product range will be expanded and the quality of service will increase.

Positive aspects of transforming branches into operational offices

Let us list the main advantages of the transformation of the banking sector based on the experience of the largest Russian banks.

First of all, during the transformation of a branch into an operational office, a separate accounting unit is eliminated, that is, the need to create a separate balance sheet and other mandatory reporting for the operational office in accordance with the requirements of the Bank of Russia disappears. In other words, there is no need to form a separate accounting department for the preparation of these reports, but the question remains where and to whom these functions will be transferred.

The next point is that in the newly created structural division of the bank there is no position of chief accountant, which, in turn, frees the bank from the approval process at the Bank of Russia and reduces personnel costs, which is especially important for banks with small regional offices. In addition, the mode of appointment of the head of the operational office also changes: when the status changes, the need for approval with the territorial administration of the Bank of Russia changes to the obligation of simple notification of his appointment.

Due to the fact that legally the operational office is not a separate (separate) structural division of the bank, it has only a subcorrespondent account and does not make independent payments, which leads to a reduction in operational risks (including those associated with fraud) and a reduction in the amount of non-performing assets.

It is also impossible to ignore the requirements of the Bank of Russia regarding the premises of branches, including requirements for technical strength and the presence of a storage room (or safe room), which leads to significant additional costs, while the Bank of Russia does not impose such requirements in relation to operational offices. As a rule, operational offices are equipped by credit institutions depending on the degree of security and the range of services offered by the office.

It should also be noted that the procedure for registering an operating office is much shorter than the procedure for registering a branch. This is extremely important to ensure the manageability of the network, that is, to ensure the continuity of the bank’s activities in the region where it operates (in case of relocation, opening, closing).

In general, the decision-making system remains the same as in branches: operational offices are left with independence in making credit decisions, in using established credit limits, in concluding credit and business agreements, that is, regardless of status, regional points of sale can be vested with all the powers necessary for making management decisions and successful business development.

So, the main reason for the advisability of converting branches into operational offices is the need to increase the efficiency of the existing branch network by reducing the costs of supporting operations; in addition, strict centralization increases the level of control and automation of processes and, as a result, reduces costs: such a transformation creates an organizational platform to transform the process of horizontal delegation of authority (when many large regional branches are subordinate to one head office of the bank) into a two-level (matrix) system, when the head office manages the so-called bushes, that is, several base branches, which, in turn, have operational control over several operating offices.

Stages of branch network transformation

The process of transforming a branch network requires large-scale analysis and the involvement of special experts working in the market for this type of service. As a rule, a “pilot” branch is selected where the transformation process is tested.

The main task of the bank is to develop a plan for the transition to a new structure and the implementation of a unified, reliable automated banking system. In this regard, business units are preparing a methodology for carrying out organizational activities related to the transformation of branches, and specialized firms, as a rule, provide the bank’s IT specialists with the necessary advice on the use of the developed functions.

A huge amount of work also falls on the shoulders of the central accounting department, since its area of ​​responsibility includes inventory and reservation of accounts, transfer of balances with the balance being reset, transfer of contracts, account service conditions, tariffs, interest rates, etc.

In the future, a replicable solution will be developed and a massive transformation of the branch network will take place. As for the organization and management of the project, after the “pilot branch”, a standard matrix of project roles, standard methods of communication and interaction with bank divisions, a standard plan for carrying out all IT and business activities for preparing and conducting migration of branches, etc. are approved. The main effect is achieved through a reduction in the number of employees, of whom the regions require less after the reform than before.

Accounting aspects in conditions of centralization

As we have already said, building a matrix management structure allows you to standardize service throughout the network, minimize back-office functions at points of sale through centralization, save costs and concentrate locally on sales and quality of service. Operational offices are freed from the need to prepare and submit reports to the Bank of Russia, reporting to tax authorities is simplified, etc.

In the conditions of the so-called transition period, a bank that has decided to reform its branch network approves regulatory documents regulating the issues of document flow, accounting and areas of responsibility between the newly created structural divisions, including in order:

• carrying out client settlement transactions (non-cash payments);
• conducting cash transactions;
• maintaining a file cabinet of settlement documents;
• suspension of transactions on customer accounts;
• conducting transactions with securities (usually bills and certificates of deposit);
• carrying out credit operations;
• conducting deposit operations, etc.

The greatest difficulty, in our opinion, is caused by the organization of document flow when maintaining card files of settlement documents and suspension of transactions on customer accounts, since the originals of primary accounting documents (payment requests, collection orders, decisions and resolutions of authorized bodies on the suspension of transactions/freezing of funds) are received in the operational office at the place of registration of the legal entity, and records are kept in the bank division that carries out accounting and control functions.

Let us turn to some definitions and functions of the bank’s structural divisions, which are directly affected by the process of transforming a branch into an operational office.

The front office is the department that concludes bank transactions. In the conditions of transformation, these functions fall on the divisions of the parent organization (additional offices) and base branches, which remain within the bank’s structure.

A back office is an internal structural unit of a bank that processes transactions, carries out settlements and maintains accounting records, that is, performing auxiliary functions in relation to the front office. This division carries out accounting, storage of primary accounting documents, prepares financial statements, monitors, if necessary, compliance with limits and provides information to the central accounting department in accordance with the requirements of the Bank of Russia.

Back office functions can be distributed among several departments. Advanced banks also distinguish the middle office as a separate staff unit, emphasizing its difference from both the front office and the back office.

Middle office - an internal structural unit of the regional operational office that interacts with clients in terms of signing agreements for banking services and other framework agreements (general agreements, etc.), accepting client orders for transactions (settlements, purchases, sales, support of accounts, transfer of funds, etc.), providing statements/responses to customer inquiries in accordance with the established procedure. The middle office reports to the front office.

The back office does not serve bank clients, unlike the middle office, but interacts with counterparties.

Centralized accounting<1>- an internal structural unit of the bank, formed in the area where the base branch is present (can be formed on the basis of several branches), exercises control (in terms of accounting) over all regional operational offices subordinate to the branch.

<1>Operational support centers.

Centralized accounting takes over the operational functions of all branches, which allows you to concentrate the activities of regional sales points on business development, as well as standardize service and improve the quality of customer service throughout the network.

The above distribution of responsibilities may vary slightly for different banks - for example, control over compliance with limits may be assigned to the internal control unit (which is methodologically more correct, but this raises the question of the leverage of this unit on the back office), in some cases management reporting may also be transferred to other departments (which may, in turn, lead to discrepancies in reporting), etc.

In our opinion, the centralization process meets the requirements of the modern banking system. The purpose of creating centralized accounting (operational support centers) is to consolidate the functions of the back office, accounting and operations department, which processes client transactions. In practice, for clients, all changes, in principle, remain unnoticeable: it does not matter to them where and by which collegial body of the bank their applications are considered, where the bank’s accounting department is located and where their documents are stored. The main thing is the quality and speed of service. This network reform allows us to achieve just that. Reducing the bank's costs will allow it to offer clients more profitable products, and optimizing business processes will increase the speed and quality of service.

As noted above, with complete centralization of accounting, the staffing table of the operating office does not provide for the position of chief accountant, and the functionality of accounting services is significantly reduced. Cash settlement documents are executed by operational employees. All payments are made through centralized accounting; operational offices do not open their own accounts with other credit institutions. Non-cash payments are carried out centrally through correspondent accounts of base branches.

The parent organization of a commercial bank bears all obligations to clients of the closed (reorganized) branch. Customer service continues at the operational office. Closing client accounts and opening new ones in this case is not required.

Only in the event of complete liquidation of a branch by a bank can the bank account numbers of clients of the closed branch, loan and other intrabank accounts be unilaterally changed, and the bank is obliged to warn its clients about this in writing in advance.

In the event of complete liquidation, the balances from the accounts of the closed branch are transferred to the correspondent account of the credit organization (second-order balance sheet account 30101).

The following accounts opened on the balance sheet of the branch are subject to closure:

• accounts for recording income and expenses (in this case, the balances are first transferred to the accounts for recording income and expenses of the parent organization);
• interbranch settlement accounts (second order balance sheet account 30301/30302);
• accounts for settlements with other debtors for business transactions (second-order balance sheet account 60312).

Access to accounts for recording the card index of settlement documents (off-balance sheet accounts of the second order 90901, 90902) and for other transactions (credit, deposit, securities transactions - a purely technical issue; in this case, closing previously opened accounts is not required until the expiration of the agreements.

Upon the fact of making a decision to close a branch, it should be deregistered with the tax authorities and the territorial institution of the Bank of Russia supervising the activities of the bank should be notified, as well as the territorial institution of the Bank of Russia at the location of the branch should be notified. The date of closure of a branch of a credit institution is the date of sending the specified notice.

Additional risks arising when making payments in conditions of centralization of back-office functions

Many years of experience in the formation of the banking sector in Russia have shown that opening a branch is too expensive a process for a bank, and therefore there is an opinion that an operational office is a sales point for a small bank with a limited range of banking services, subordinate to the branch. Operational offices were opened, as a rule, in the regions of the Far East, Far North and Siberia, in hard-to-reach places. In some cases, some managers do not see any differences between operational and additional offices. This has an impact on the bank’s personnel policy and the ability to select a responsible, representative manager responsible for attracting clients. In other words, in some cases, the absence of branches in the regions where a commercial bank is present may affect its status and image.

Operational offices are, in fact, intermediaries between the bank (branch) and the client. The main goal of their creation is to centralize back-office functions and reduce document flow. At the same time, in the absence of your own correspondent account, the process of processing client payments becomes a little more complicated. Payment documents of clients serviced in the operational office are processed in one region, and transfers of funds to clients of other banks can be carried out from the correspondent account of a branch or parent organization located in another region of Russia. In other words, if the operational office and the branch from which it is opened are subordinate to different territorial departments of the Bank of Russia, there is a certain delay in payment traffic, which is also aggravated by the bank’s internal procedures (the accumulation of payments for a flight in a branch can occur without taking into account the urgency of payments back office clients).

In regions remote from the head office, the selection of clients was based, as a rule, on the human factor. Thus, when a branch is closed, the issue of safety of funds belonging to large corporate clients and individuals remains. Branch managers, having at their disposal a cash desk and a correspondent account, could guarantee a certain segment of clients a refund of money, despite the state of the parent organization and the bank as a whole. The head of the operations office is deprived of this opportunity (only the cash balance remains under his responsibility). This fact significantly affects relationships with VIP clients in regional markets.

We cannot ignore the fact that centralization of back-office functions leads to increased operational risks. Despite the fact that the staff of the bank’s accounting staff is being reduced and the bank is striving to switch to electronic document management, there is a high probability of incorrect processing of settlement documents on paper, which continue to exist in the Russian settlement system: in the conditions of an operational office, documents are accepted through one operational window, and final processing is another division of the bank. The function of operational workers in such conditions is reduced only to accepting settlement and monetary documents, which “erodes” their responsibility.

In such conditions, the responsibility of banks becomes the development and approval of internal regulations that clearly regulate the issues of document flow and areas of responsibility between the newly created structural divisions of the bank.

The technology for processing accounting information for the operations of newly created operational offices is based on the principle of implementing software subsequent control and autonomy of the work of accounting departments. Opening accounts, calculating interest and other cash flows on customer accounts are carried out directly in the back office, while responsible employees of the accounting department (operational support centers) monitor all operations of the regional operational offices subordinate to them. Compliance with a clear distribution of functions between back, front and middle offices and the implementation of well-established interaction will allow you to competently structure business processes within a credit institution and reduce banking risks.

Particular attention should be paid to the operational risks that arise when carrying out settlement transactions on customer accounts. There is a tendency to shift most of these risks to the back office, but the best solution to the problem is to work in a way where the front office is directly involved in minimizing these risks.

Experience has shown that back office operational risks, which are often overlooked, sometimes turn out to be costly and potentially more significant than market risks. Examples of operational risks arising when carrying out settlement transactions through operational offices are:

• software malfunctions;
• shortcomings in organizing the storage of documents on paper and in electronic form;
• deficiencies in management, supervision, control organization;
• errors in reports submitted to base branches;
• attempts to hide losses or achieve personal gain (fraud by employees of operational offices);
• fraud of third parties (on the part of clients).

It is not difficult to establish and control certain levels of market and credit risks. But identifying and assessing the levels of operational risks and their sources is not an easy task. The main problem is that operational risks cannot always be identified in a timely manner. Losses often result from a complex combination of events, making risk situations difficult to predict and model.

It is no coincidence that the Bank of Russia pays great attention to the recommendations of the Basel Committee on Banking Supervision in the area of ​​risk identification, which has done a lot of work in this area. In February 2003, the publication “Basic Practices for the Management and Supervision of Operational Risk” appeared. Thanks to the joint efforts of researchers and risk managers of large banks, based on recommendations, it was possible to identify methods for managing operational risks. The final version of the Basel II agreement appeared in 2004. According to the decision of the Basel Committee, operational risk is the risk of losses associated with inadequate or failed internal processes, systems or human errors or external events. It should be noted that this definition does not take into account the risks of loss of reputation, although it is obvious that some operational events may affect the “good name” of a credit institution. The Basel Committee identified seven main categories of events leading to losses, the likelihood of which increases significantly with a centralized form of accounting:

• dishonest actions of employees of the operational office (internal fraud): losses associated with deception, misappropriation of someone else's property or non-compliance with legislation or internal regulations of the bank, in which at least one of the officials is involved;
• external fraud: bank losses associated with deception, misappropriation of someone else's property or non-compliance with the law by bank clients and other third parties (theft, robbery, hacker attacks and other similar factors);
• Work practices and safety: losses associated with actions contrary to laws or agreements regarding labor, health and safety, resulting in the payment of compensation for claims for personal injury or discrimination (litigation between the bank and employees of the operating offices);
• Customers, Products and Business Practices: Losses attributable to inadvertent or negligent error in the performance of professional duties with respect to specific customers or the nature or design of products offered to customers;
• damage to physical resources: losses associated with loss or damage to resources due to natural disasters or other events;
• business disruptions and system failures: losses associated with business disruptions or system failures. This category includes losses due to failure of computer equipment, software, networks or utility service failures;
• execution, delivery and process management: losses associated with failures in transaction processing or process management, as well as losses caused by unsuccessful relationships with third parties.

In terms of operational risk management practices, the Basel Committee and various supervisory authorities prescribe a number of Operational Risk Management (ORM) standards for banks and similar financial institutions.

Taking into account the above, the parent organization (base branch) of the bank should pay great attention to identifying and minimizing operational risks when opening operational offices. In other words, the process of monitoring the activities of newly formed structures should include:

• procedures for timely identification of risk factors;
• operational risk assessment;
• constant monitoring of all operations;
• reduction of operational risk factors.

Back office staff should provide the necessary information on settlement risks, etc. However, overall planning, coordination and monitoring must be provided centrally by operational support centers.

conclusions

So, the main group of reasons that determined the need to reform the branch network of large Russian banks is the low level of profitability of branches, excessive concentration of efforts on the development of those areas of banking activity that brought immediate, mainly speculative income. It should also be noted that the management personnel of many banks are insufficiently qualified, the lack of reliable methods for managing assets and the branch network, and underestimating the danger of risks adequate to the volume and nature of operations. There are often cases when banks incurred unreasonably high costs for opening branches and constructing buildings, which increased the cost of their operations and, as a result, reduced profits.

The goal of the reform is to reduce costs and achieve bank reliability (quality and speed of service, ensuring uninterrupted customer payments). As practice shows, for banks focused on retail business, a wide network of cheap operational offices is more attractive, for universal and focused on servicing only large clients - legal entities and individuals in the region of presence - a branch.

O.Yu.Kashanova

Internal Auditor

The head office of Alfa-Bank is located in Moscow; a total of 511 branches and branches of the bank have been opened in the regions of Russia and abroad. One of the largest divisions is the Nizhny Novgorod branch of Alfa-Bank OJSC, which also includes divisions located in Udmurtia.

OJSC Alfa-Bank in Udmurtia is represented by the following divisions:

Credit and cash office "Rodnik" (Izhevsk, Sovetskaya St., 13);

Operational office “Izhevsky” of the Nizhegorodsky branch (Izhevsk, Sovetskaya St., 13);

Credit and cash office “Izhevsk-Ustinovsky” (Izhevsk, Molodezhnaya str., 87);

Operational office "Italmas" branch "Nizhegorodsky" (Izhevsk, Molodezhnaya str., 87);

Credit and cash office "Izhevsk-Deryabinsky" (Izhevsk, Pushkinskaya str., 216).

The Izhevsky operational office of the Nizhegorodsky branch was established on November 22, 2010. Currently, its staff number is 17 people. The organizational structure of the Izhevsky office of Alfa Bank OJSC is presented in Figure 1.

Figure 1 - Organizational structure of the Izhevsky operational office of Alfa Bank OJSC

The office manager directly manages all sectors existing in the office, combined into blocks; under his leadership there is also a deputy office manager and a senior cash operations officer (SOCR).

The deputy manager of the department controls and coordinates the work of the entire team (except for the manager), holds morning meetings every day, helps employees, can perform all types of employee work, resolves conflicts and controversial situations, etc. When there is no manager, he performs his duties. The following employees are under his direct supervision:

Service administrator. Its functions include:

Client meeting

Identifying the client's primary needs

Working with a queue

Transferring the client to a specialist or manager-consultant

Directing the client to ATMs and assistance in working with them

Help in filling out the form and Western Union transfer form

The functions of credit specialists include:

Conducting a credit interview with a potential client of the Bank;

Collection and verification of documents, as well as information declared by a potential client.

Assessing the solvency of a potential client, as well as his application for a loan;

Making a credit decision;

Preparation of documents for granting a loan or refusal to provide a loan;

Attracting potential investors;

Preparation of deposit documents.

Manager-consultant:

Presentation and sales of Alfa-Bank OJSC products

Consultations (on loans, tariff plans, etc.)

Transactions

Assistance in filling out forms for opening tariff plans and for loans

Investment consultant:

Consultations on deposits, deposits, mutual funds (MUIFs), etc.

Presentations

Concluding deals, etc.

The senior cash operations officer (SOCR) organizes the work of cash and settlement services for clients, including accounting, sells standard banking products to clients, and builds an effective scheme for operational customer service.

The functions of cashiers include:

Carrying out cash transactions for commercial banks;

Collection;

Periodic reporting on cash transactions.

The functions of an accountant include maintaining accounting records. accounting for intra-business operations, accounting for income, expenses, financial results, fixed assets, property and capital assets, accounts receivable and payable, preparing reports, carrying out daily follow-up monitoring of office operations.

The social structure of the personnel of the Izhevsky operational office of Alfa Bank OJSC for 2013 is presented in Table 3.

Table 3 - Social structure of the staff of the Izhevsky office of Alfa Bank OJSC for 2013

Characteristic element	Number of people	Specific gravity, %
Number of employees, including:
Management personnel
Specialists
Support staff
From 18 - 25 years old
From 25 - 40 years
From 40 - 55 years
Education:
Average
Initial professional
Secondary vocational
Higher professional
Men
Women
Work experience in banking
From 1-3 years
From 3 to 7 years
From 7 to 10 years

To carry out its activities, the Izhevsky operational office of Alfa Bank OJSC has qualified personnel with sufficient work experience and level of education. An analysis of the movement of personnel in the Izhevsky operational office of Alfa Bank OJSC is presented in Table 4.

Table 4 - Movement of personnel of the Izhevsky operational office of OJSC Alfa Bank OJSC for 2012-2013.

It can be noted that in the Izhevsky operational office of Alfa Bank OJSC there is a fairly low turnover rate, which is explained by the ongoing personnel policy, working conditions and the existing remuneration system.

Russians are used to going to bank offices. And banks understand this

Photo: Alexander Nikolaev/TASS

Despite the fact that the Central Bank of the Russian Federation records an annual reduction in the branch network of banks, some credit organizations, on the contrary, are expanding their retail networks. At the same time, against the background of the reduction of Sberbank offices, the Post Bank network is increasing and is now only 1.7 times smaller than Sberbank’s.

Where are we going, comrades?

The Central Bank statistics are inexorable. At the beginning of April 2017, there were 33.3 thousand “internal structural divisions of existing credit institutions” operating in Russia. The Bank of Russia includes additional offices, operational cash desks outside the cash desk, credit and cash offices and operational offices under this term.

Since last April, the number of internal structural units (ISU) of banks has decreased by 3.1 thousand, and since January 2012 - by 7.2 thousand, that is, by one fifth. This reduction is a consequence of both the regulator’s policy to “clean up” the market and the policy of credit institutions themselves to optimize costs, experts point out.

Banki.ru surveyed the largest credit institutions in Russia on what changes their retail branch networks have undergone over the past year. It turned out that, along with the general trend towards the reduction of bank offices in the market, there is another one - some banks are slowly expanding their networks for servicing individual clients.

Retail branch networks of the largest banks

	Bank	Number of retail offices, pcs.		Change for the calendar year, in pcs.
		as of 04/01/17	as of 04/01/16
	Sberbank
	Post Bank
	Rosselkhozbank
	Alfa Bank
	Promsvyazbank
	"Uralsib"
	"AK Bars"
	Russian National Commercial Bank
	Raiffeisenbank
	UniCredit Bank
	Credit Bank of Moscow
	"Russian Capital"
	AB "Russia"
	Ural Bank for Reconstruction and Development

Source: bank data

The table shows that not all banks are reducing their branch networks. Some are increasing. At a minimum - networks for individual clients. A noticeable increase over the calendar year (April 2016 - April 2017) was shown by Post Bank, B&N Bank, Promsvyazbank and Moscow Credit Bank (MCB).

“The significant growth of the regional presence is due to the key socially significant tasks facing Pochta Bank. Firstly, it is increasing the accessibility of financial services for Russians. Secondly, increasing the share of non-cash payments in the economy. It is obvious that without the development of a wide regional network of points of presence, where residents of our country will be able to receive a free plastic card to pay for purchases and services (including on the Internet), as well as a basic set of financial services (the ability to make a deposit, get a loan, make a transfer or pay utilities), it is impossible to solve these problems. However, thanks to the business model that provides for the synergy of the bank and Russian Post, as well as the unique opportunity to work within the infrastructure of post offices, we are successfully coping with them,” says Georgy Gorshkov, First Deputy President and Chairman of the Board of Post Bank.

Binbank explained: the total number of branches has increased due to the merger with other banks included in the group. In particular, in November 2016, the legal merger with MDM Bank was completed.

Binbank will be merged with MDM Bank and will give it its own brand

Shareholders of B&N Bank and MDM Bank at an extraordinary general meeting on October 7 approved a scheme for the legal merger of the two banks. As reported in Binbank, it was decided that it will be merged with MDM Bank, while the merged bank will continue to operate under the Binbank brand (MDM Bank will be renamed “Binbank”).

Promsvyazbank also clarified that the branch network has grown mainly due to the merger of the offices of subsidiary banks - AvtoVAZbank and Pervobank - as a result of integration.

MKB has expanded its geographic presence in Moscow and the Moscow region.

“Based on an analysis of the demand for our products and services, as well as customer activity, we concluded that the previously existing infrastructure did not cover all possible demand - bank clients prefer to be served in branches located in close proximity to their homes. The bank decided to increase its network and expand its geography in Moscow and the Moscow region. So, in 2016, in addition to new branches in Moscow, we opened bank offices in all major cities near Moscow: Pushkino, Khimki, Zheleznodorozhny, Ramenskoye, Sergiev Posad, Voskresensk and Dolgoprudny,” said the MKB press service.

Let's line up according to height

In the Banki.ru ranking, the first place in terms of retail branch network among banks was expectedly taken by Sberbank. As of April 1, 2017, it had 13.8 thousand offices serving individuals (excluding VSP corporate block and Sberbank 1). This is 832 offices less than a year earlier.

There are about 20-25 thousand residents per Sberbank business office

As told to Banki.ru in Sberbank, the core of the credit institution's network is business offices, where clients can receive a full range of all services and products, including advice on mortgages and investment products. Such branches are located in all cities of the Russian Federation; as a rule, there are about 20-25 thousand residents per office. Based on this, the number of VSPs in a subject is proportional to the total number of residents. The main format in rural areas is operational offices that provide the population with a limited list of the most popular financial services. Sberbank operates in more than 5.5 thousand villages and urban settlements.

“The format of operational offices is also presented in cities. In total, over the past year, 832 operational offices were consolidated - in cities with a population of “100 thousand plus”, which could not provide the required level of service and were not in demand by clients. The bank strives to be closer to the client and plans to open offices where it is in demand, the Sberbank press service said. - Considering that for 85% of clients the average distance to the nearest branch in these cities does not exceed one kilometer, the closure of small offices did not affect the accessibility of financial services. The bank’s rural network remains unchanged; no actions are planned in this direction.”

Sharply jumped to second place after Sberbank Post Bank. As of April 1, 2017, its retail network consisted of 8.1 thousand points of presence, including 2.3 thousand customer centers in post offices, 5.2 thousand sales windows with a Russian Post employee, 336 customer centers of the former Leto Bank, as well as 233 sales counters.

However, Post Bank does not intend to stop there.

“Our retail network today is the second largest in Russia. At the same time, we do not have a goal to overtake any bank in any given indicator. Today we are in the stage of intensive development and gaining market weight,” says Georgy Gorshkov. - The development strategy of our bank provides for the opening of about 18 thousand points in the first three years of operation. If, ultimately, Pochta Bank’s services are more accessible than the services of one of the market leaders, then we are on the right track.”

Meanwhile, conducted by the Banki.ru portal, the Chairman of the Board of Post Bank Dmitry Rudenko unequivocally stated, accepting the award in the “Discovery of the Year” nomination: “If we work well, then in a few years we will be the “Avant-garde of the Year”, then maybe "Renaissance of the Year" And in five years we will be Sberbank of the Year!”

Let us recall that from 2012 to 2015, Pochta Bank - the “granddaughter” of VTB - operated under the name Leto Bank and positioned itself as a “light” bank, focused on the mass retail segment, specializing in express lending, cash loans and credit cards. However, in 2015, Russian Post bought 50% minus one share of Leto Bank from VTB Group, on the basis of which Post Bank was created in January 2016. The bank's first customer centers opened in April last year. From that moment on, the credit institution began a large-scale march across the country, as a result of which over the year the number of its points of presence increased more than tenfold - to 8.1 thousand branches. It was the client centers in Russian Post branches that played a major role in the development of Pochta Bank's branch network.

Among the banks that responded (requests were sent to the 30 largest by assets), the third largest in the number of retail branch networks was Rosselkhozbank(RSHB). Its network slightly exceeds 1.3 thousand offices, and this figure has changed little since last spring.

The RSHB reported that they plan to use new formats of access points, based on the use of modern technological solutions and aimed at ensuring the availability of banking services for customers, regardless of their location, in conjunction with increasing operational efficiency and cost recovery parameters. Priority is given to the development of remote channels and the introduction of an omnichannel sales and service model using Internet and mobile banking, the bank’s website, contact center, ATM and terminal network and partner sales channels.

VTB 24 became only fourth in the ranking. Its retail network of offices includes just over a thousand branches.

“Our principles for network development include, firstly, its further expansion in the cities where we operate, where the existing infrastructure is no longer sufficient to serve the growing number of our clients. Secondly, we open offices in cities where our potential clients live, but there are no bank offices. Also, a significant part of the network development program consists of offices in the “bank at work” format, opened as part of cooperation with companies with which we have implemented salary projects,” commented the VTB 24 press service.

In total, last year VTB 24 opened 46 new offices, additionally implemented 43 projects to improve the existing network and closed 16 old informal offices that did not meet the bank’s modern requirements.

In fifth place - Binbank with an indicator of 415 offices. The bank believes that at the moment the number of branches in its regional network is optimal for the effective development of business throughout Russia. Therefore, a significant change in the number of offices is not expected, but it is assumed that new branches may be opened in some cities.

Humpty Dumpty

As some credit institutions explain, instead of closed offices they open new ones - usually larger and more modern. Due to this, the number of newly opened offices may be less than the number of closed old ones, but the “client traffic” of new points is not lower.

Thus, at the beginning of the year, the chairman of the Moscow Sberbank Bank, Oleg Smirnov, said that the reformatting of the entire branch network of the Moscow Sberbank implies the abandonment of old-style offices and the opening of full-functional branches with a larger area. “If we close several offices, it means that somewhere in this area one large Sberbank office is opening,” explained Smirnov, adding that the number of offices is decreasing, but the number of jobs is only growing.

Sberbank's branch network in Moscow will be reformatted by the end of the year

By the end of 2017, the reformatting of the entire branch network of Moscow Sberbank will be completed, which implies the abandonment of old-style offices and the opening of fully functional branches with a larger area. Chairman of the Moscow Sberbank Oleg Smirnov told reporters about this.

According to the head of the branch network development department Ural Bank for Reconstruction and Development(UBRiR) Evgeniy Sidorsky, back in 2014 the bank completed the implementation of an extensive growth strategy, which involved expansion into the regions, the massive opening of new offices and the formation of a client base. Currently, UBRD works within the framework of the “satisfied client” strategy and aims to improve the quality of service and build long-term relationships with clients. Regarding the prospects for increasing the branch network, the bank adheres to the following principle: the number of offices directly depends on the efficiency of business in a particular city. This is what is taken into account when considering the opening of new branches.

At this moment Russian National Commercial Bank(RNKB) has the largest network of branches in the Republic of Crimea and the city of Sevastopol, and therefore the bank evaluates, first of all, the economic efficiency, profitability and convenience of each office for residents of a particular area. As part of the optimization, RNKB also merged small operational offices last year and selected the most convenient location for branches. The measures taken to optimize the network allowed the bank to improve the quality of customer service.

“We do not pursue a policy of reducing or expanding our branch network. We pursue a policy of maintaining our branch network to the extent that meets the needs of our customers today. We see very good prospects for business development and are planning to expand our branch network this year. This decision is due to the great interest of customers in our products and business growth. We are also closing less popular branches and opening new ones in other places where there is a greater need for them or there is an opportunity to make the office more comfortable for servicing clients,” the press service explained to Banki.ru Raiffeisenbank.

“In the context of the development of the network, it would be incorrect to talk only about a reduction in the number of offices, which, of course, took place. This process also involves relocating offices and changing their formats in accordance with the expectations of bank clients, as well as improving remote service channels in order to provide multi-channel access to the bank for each client,” they said in Rosbank, whose retail network includes 400 offices.

Chairman of the Board Bank "Ugra" Dmitry Shilyaev said that his bank adheres to the strategy of progressive development of the regional network. The main emphasis is on improving operational efficiency within existing divisions. “We go where there is a need for banking services. Thus, we have formed an optimal network structure that covers the most significant Russian regions and fulfills the assigned tasks in all areas of business,” he believes.

Director of Retail Sales Department UniCredit Bank Sergey Vasyatkin noted that the bank’s attentive attitude to the efficiency of the retail network allowed it not only not to reduce it in the current economic conditions, but also to open five new offices in 2016. Since the end of 2015, UniCredit has also been operating branches of a new format, he said. Their main feature is the replacement of cash registers with other options for depositing and withdrawing cash, such as: ATMs with a cash acceptance function, a network for accepting and withdrawing cash from UniCredit’s partners - banking and non-banking organizations. At the same time, these compartments do not differ in functionality from standard ones. This format was specially developed as part of the bank’s work plan for network transformation. It makes it possible to make the credit institution more accessible to clients in those key cities in the region where demand for its services is steadily growing, as well as to increase the efficiency of existing branches.

Bank "Russia" also adheres to a balanced, rational approach to the branch network development policy. Closing and opening of offices is carried out in accordance with expediency: coverage of the potential target audience, location, presence of significant clients, the bank said.

At Uralsib Bank By the end of 2017, a number of relocations of existing offices to more convenient and accessible locations for clients are planned. But a significant expansion of the office network is not expected.

“Currently, we are specifically considering options for expanding our business in those regions where we see potential growth. Also, changes in the network may be associated with optimization in terms of administrative and business costs. We clearly understand that, despite the rapid development of remote service channels and financial management, the network of branches remains in demand by customers. For many clients, the very opportunity to come to a branch, receive competent advice from a specialist, or solve difficulties with a bank employee is important,” explains the head of the retail network development department. Alfa-Bank Dmitry Semenov.

“The change in the number of offices is due to the program carried out in 2016 to close unprofitable points of sale. In addition to closing locations, as part of the network reorganization program, 26 projects were implemented, including ten new offices were opened, ten offices moved to new premises and significantly improved their location, additional space was rented for six offices, and customer service areas were improved, they said. press service Bank "Russian Capital". “The Bank is carrying out a global reorganization of its regional network, within the framework of which all divisions are being reformatted to new unified models for selling products and services for all customer segments: retail, small, medium and large businesses.”

Branches won't go anywhere

Experts interviewed by Banki.ru are confident that in the coming years we should not expect a mass “exodus” of physical offices from the lives of clients of Russian banks.

It is not worth expecting that banking services will completely move online over the next 5-7 years.

“Indeed, on the one hand, against the background of increasing demand for Internet and mobile banking services, the number of bank branches continues to decline. However, it is still important for clients to be able to come to a bank branch - this adds confidence in its reliability. So, over the next 5-7 years, you shouldn’t expect that banking services will completely move online,” says Victoria Selezneva, director of retail channel development at Rosbank.

“There will be no refusal of offices in the coming years, since there is a conservative part of clients who need service in a physical office. Banks will increase the number of services that can be provided remotely, and as customers get used to online services, the volume of provision of these services will increase. Deposits from the population are the most important part of banks’ liabilities, and it will be difficult to replenish them remotely, since people are not ready to send money to an unknown destination,” says Vyacheslav Putilovsky, junior director for banking ratings at Expert RA.

Speaking specifically about trends in the “branch” market, the head of the bank ratings department of the National Rating Agency, Egor Ivanov, noted that the growth of the retail branch network may be partly due to its restoration after the reduction in 2015, when banks, trying to cut costs, closed highly specialized and low-profit offices. Also, in a number of cases, especially in the regions, federal banks expanded their network infrastructure by opening points of presence at the offices of banks with a previously revoked license. In addition, the reduction of offices can occur for various reasons, including due to a change in development strategy or cost reduction (closing unprofitable branches). The reverse process is also possible.

“All these processes are regulated by their economic feasibility, and issues of dissatisfaction with the client masses are not in the first place. However, there are exceptions when the only bank office in a locality is closed and its residents have to travel to another village to use banking services. In this case, it is likely that citizens’ dissatisfaction may change the opinion of the bank’s management and the bank will reopen the previously closed branch,” notes Ivanov.

As for Post Bank as the “new Sberbank,” analysts are not sure that anyone will be able to bypass the market giant in the foreseeable future, even if it significantly reduces the number of its offices.

“Sberbank’s network will be reduced, but not “to zero”, for the reasons that I listed above. Post Bank, if it will replace Sberbank offices, will be those that, due to their remoteness and meager client base, are unprofitable to maintain as a separate point of sale. In this case, a “reformatted” post office will remain, which will serve as both a post office and a bank. However, this process will be greatly extended over time,” believes Putilovsky.

“Perhaps in some localities Sberbank branches will be closed due to the opening of Post Bank offices there, but these will most likely be isolated cases, and they will be explained by economic feasibility, and not by Sberbank’s desire to completely switch to remote service,” supports colleague Ivanov.

The head of the analytical department of Golden Hills Kapital AM, Mikhail Krylov, also believes that Sberbank will not leave the mass client unattended in any case. At the same time, reducing the number of Sberbank branches will not cause an outflow of its clients, but will accustom them to work in other branches.

“Of course, the reduction of offices may be inconvenient for investors. But basically, only by reducing the branch network can the quality of service be improved even more than what Sberbank has achieved to date, and without dramatically increasing costs. However, I would not say that now clients in general are ready to give up office counseling on a wide range of issues, from choosing savings tools to a detailed financial plan. Be that as it may, those who want to take the place of Sberbank and its offices and thereby compete for its target audience should remember that in retail banking, office is different from office. Without huge capital investments, bank branch networks based on third-party premises (for example, located in shopping centers or post offices) will contribute less to the development of bank brands. But there has not yet been any demand for the conversion of post offices into ultra-modern sales offices as such. If old, and sometimes very old, post offices are “redesigned” into more modern and functional ones in the next two or three years, the lower mass segment may be drawn to the new brand instead of Sberbank. Unless, of course, the structure of the postal services market changes by then,” Krylov concludes.