Public Joint-Stock Company “State Savings Bank of Ukraine” (Oschadbank or OB) is the leading Ukrainian bank with the largest network of branch offices consisting of more than 3,000 opera-tional offices in 23 regional administrations. The cooperation between the EBRD and OB started in 2016 to support the implementation of the “Reform of state-owned banks (SOB) strategy”, both through direct cooperation under various financing programs and through a comprehensive technical support package. One of the key priorities of OB’s strategic transformation is to consid-erable increase its market share in the micro-, small- and medium-sized enterprises (MSME) seg-ment with regard to both loans and liability-side transactions (loans from 3% to 10–20%; liabilities from 16% to 20%).
The main objective of the Project is to increase the operational effectiveness of OB’s regional network with regard to servicing of MSME customers taking into account best practices and ex-amples of large Central and Eastern European banks with an emphasis on:
- Development of an upgraded sales service model in the regional network focused on the needs of MSMEs.
- Optimisation of interaction processes within the MSME vertical structure, increased effective-ness of sales points and competitiveness of OB with regard to servicing MSME customers
- Optimisation and reengineering of OB’s existing business processes of MSME customer ser-vice to bring them in line with best practices of other major banks
- Increase in average product penetration per MSME customer and its harmonisation with the market benchmarks of large Central and Eastern European banks.
Services provided include, but are not limited to:
- Gap analysis of OB’s credit policy compared to international best practices, including specific recommendations for improvements and changes.
- Concept paper describing loan risk-based pricing model based on the MSME cost of risk with reference to implementation of similar models in other systemic banks and estimated ef-fect/impact on OB’s branch network and OB in general.
- List of credit scoring systems providers for MSMEs with estimated costs (purchase, customisa-tion, implementation, maintenance). Examples of scoring models adapted for the market and MSME customers’ profile in Ukraine or the CIS countries (Russia, Belarus, Georgia).
- Analysis of OB requirements to scoring system, screening of available scoring models and recommendation of most appropriate for OB. Concept of the scoring model implementation with a description of top-level business processes, products supported by the scoring model, and the expected implementation timeline in the MSME network and OB in general.
- Anti-fraud concept and roadmap for OB implementation.
- Description of the optimal business process for soft collection for MSME loans.
- Business process description, to be agreed with OB
- Detailed description of an electronic loan document processing / storage in line with NBU re-quirements and role-based access model.
- Recommendations for further improvements in the MSME segmentation approach.
- Detailed analysis of the MSME market potential according to the agreed segmentation criteria.
- Matrix of MSME customers’ needs in terms of types of customers and products, including a description of main needs of each target group of customers and justification.
- Concept of a service functional model of servicing MSME customers in terms of segments and products, including a description of OB employees’ roles and functions and justification.
- Detailed CRM approach and customized product offer matching needs of specific customer groups
- Report on the results of the feasibility study for creation of the regional competence centers.
- Cross-sales model for OB.
- Recommendations on further improving the product range for MSME customers.
- Product profitability assessment model, including a detailed description of assessment algo-rithms and example of product profitability assessment.
- Design of OB’s marketing strategy for MSME customers.
- List of recommendations regarding automation of MSME products and business processes.