Russian banks’ spending rules are just the first step in managing diversification – CEO of Tinkoff

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MOSCOW (Reuters) – A move to regulate bank spending on non-core activities is only the first step in the Russian central bank’s efforts to manage business diversification across multiple sectors, the chief executive of the Russian Federation said on Thursday. online banking Tinkoff.

FILE PHOTO: Cars are parked outside the headquarters of the Central Bank of Russia in Moscow, Russia, March 29, 2021. REUTERS / Maxim Shemetov

The central bank said on Wednesday that banks should create additional buffers if investments in so-called ecosystem services – those that go beyond a bank’s primary function – exceed 30% of their total capital.

Tinkoff, owned by the TCS Group, provides a range of financial and lifestyle services to its roughly 15 million customers, and Russia’s leading lender Sberbank is the largest ecosystem builder among national banks.

Regulation, which has yet to be fully developed and introduced, is a hot topic for both.

“They’re trying to make sure that existing financial service providers don’t waste tons of capital on things that won’t work,” said Tinkoff CEO Oliver Hughes.

Speaking to a panel of Russian business leaders discussing ecosystems, Hughes said the central bank is trying to regulate dominant players and establish a regulatory framework for new entrants to the market.

After the banking sector, the regulation will target user data from different institutions and the issue of competition, he said.

“It’s not just for banks to make their data available to e-commerce players, because it would be a bit unilateral, so it will be a reciprocal agreement where certain levels of data will be available for everyone. the world, ”said Hughes. .

Tinkoff could partner with online retailer AliExpress Russia, a joint venture with Chinese Alibaba and Russian partners, after CEO Dmitry Sergeev said he had a meeting scheduled with Tinkoff next week and was ready to examine various partnerships.

“We look forward to having lunch with Dmitry and his colleagues,” said Hughes.

Sberbank, which already offers services ranging from food delivery to cybersecurity solutions, plans to expand its logistics business in the world’s largest country, seeking to capitalize on the burgeoning e-commerce market.

Editing by Katya Golubkova and Jan Harvey

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