On May 30, 2024, the National Bank of Ukraine together with the State Service for Special Communications and Information Protection of Ukraine launches the All-Ukrainian information campaign on payment security #CybersecurityFinance.
Its goal is to raise public awareness of payment security and develop skills to protect financial data in the virtual space.
Today’s full-scale war continues not only on the battlefield, but also in cyberspace, with an increase in cyberfraud and cybercrime.
At the end of last year, the NBU, with the support of the USAID Business Resilience Investment Project, conducted the first nationally representative survey of the Ukrainian population on payment security and fraud prevention rules. The survey was aimed at determining the level of knowledge of Ukrainians in the field of payment security and identifying gaps in this area. The NBU uses the results of the survey to develop educational products for different age groups and to improve the effectiveness of information campaigns to combat payment and cyber fraud (they are not published to avoid the possibility of fraudsters using them).
Social engineering has traditionally remained the most popular method of payment card fraud in Ukraine, as well as globally. At the same time, a significant amount of cyber fraud last year was related to phishing. By using phishing resources (stylized as government portals and information resources of Ukrainian banks and payment services) and deceiving citizens, the attackers tried to gain access to their personal data, information about their payment instruments, financial phone numbers, and account balances.
Therefore, improving citizens’ knowledge and skills in this area will enable them to use cashless payments more cautiously and protect themselves from fraudulent schemes and traps in the virtual space.
“Almost a quarter of financial services users (26%) have faced payment fraud attempts, and 3% of them have lost money. It is clear that more active consumers, who use the Internet and Internet banking more often and make online purchases, are more likely to be targeted by fraudsters. Therefore, everyone, even experienced users, should improve their cybersecurity knowledge. In particular, it is imperative to increase personal cyber awareness of the rules for securing accounts, moderating the use of public Wi-Fi, and analyzing unfamiliar resources for making purchases. Thanks to this campaign, the NBU and its partners will raise awareness among Ukrainians to further develop a safe culture of public behavior in the virtual space,” said Oleksiy Shaban, Deputy Governor of the NBU.
“The cybersecurity of our country is not only the security of state information resources, systems, and databases. Although most cyberattacks now have a political, or rather military-political, component, the activities of financially motivated hackers also continue to pose a threat. Therefore, we must continue to work to raise awareness of all Ukrainian citizens on how to protect themselves from the activities of cyber fraudsters who seek to steal your data and, as a result, money,” said Yurii Myronenko, Head of the State Service for Special Communications and Information Protection of Ukraine.
“The results of a nationally representative survey of the population, conducted with the support of the USAID Business Resilience Investment Project, showed that more than a quarter of financial services users have faced payment fraud attempts at least once, and some have suffered from it. A large share of them are more active consumers who use online shopping, paid online services and remote banking more often. The rapid development of technology is contributing to the spread of fraud, especially in times of war, and making it more difficult to detect. Therefore, measures to raise public awareness of payment security and relevant information and training campaigns should be regular and nationwide. Our Project was pleased to support the survey and the NBU’s campaign to combat payment fraud #CybersecurityFinance,” said Yulia Vitka, acting manager of the USAID Investment for Business Resilience Project.
JSC OTP BANK supported the information campaign aimed at raising public awareness of payment security and financial protection in the virtual space.
“The number of cyber incidents in Ukraine and the world is constantly growing. Fraudsters are using any available means and the latest technologies, including artificial intelligence, to deceive as many people as possible and enrich themselves illegally. In such a situation, banking institutions, to which citizens entrust their savings, feel an increased responsibility to society. OTP BANK makes every effort to ensure that customers’ money is safe – for this purpose, we transfer data to the cloud and strengthen security systems. And in order to neutralize the human factor, in particular on the part of users of banking services, we consistently participate in information campaigns of the National Bank of Ukraine aimed at improving the financial literacy of Ukrainians, developing their skills and abilities that will help protect funds from fraudsters and cybercriminals,” said Oleg Klymenko, member of the Board of OTP Bank responsible for retail business development.
During the campaign, the National Bank, together with its partners, will explain to financial services consumers the basic elements of cybersecurity on the following issues:
● how to protect their accounts, computers, smartphones, and other devices from external interference
● how to create complex and unique passwords
● how to set up multi-factor authentication;
● how to check websites where users enter their payment data and files, mobile applications and other programs before downloading them;
● how to properly use public and home Wi-Fi networks;
● how to take care of the software on their own devices and other rules of safe behavior in the virtual space.
The information campaign will run until the end of September 2024 in all regions of Ukraine. As part of the campaign, the NBU is launching a special webpage (landing page) “Cybersecurity of Finance” with detailed information about the campaign and rules of conduct in the virtual space.
For reference.
The NBU is conducting the All-Ukrainian Information Campaign on Payment Security #CybersecurityFinance together with the State Service for Special Communications and Information Protection of Ukraine, as well as with the support of the USAID Business Resilience Investment Project.
General partners: Department of Cyber Police of the National Police of Ukraine, Ministry of Justice of Ukraine, Free Legal Aid, Ministry of Social Policy, General Staff of the Armed Forces of Ukraine, State Employment Center, PROSTIR, Portmone, Kyivstar, Lifecell, OLX.ua, Viasat, MEGOGO Education, GOITeens, ESET.
Media partners: PrivatBank, Oschadbank, Ukreximbank, Raiffeisen Bank, Ukrgasbank, FUIB, Ukrsibbank, SENS BANK, Credit Agricole Bank, OTP Bank, Kredobank, ProCredit Bank, Tascombank, A-Bank, Bank Credit Dnipro, Accordbank, MTB Bank, International Investment Bank, Bank Globus, Pravex Bank, Cominbank, Piraeus Bank, Radabank, Bank Clearing House, Agroprosperis Bank, Unex Bank, Bank for Investment and Savings, Grant Bank, Ukrainian Capital Bank, Creditwest Bank, Crystal Bank, Motor Bank, Polikombank, Ukrainian Bank for Reconstruction and Development, First Investment Bank, Trust Capital Bank, Bank Portal, BTA Bank, NABU, Mastercard, YASNO – a supplier of electricity, gas and energy efficiency solutions, Foxtrot, Epicenter, Eldorado, Opendatabot, EasyPay, city24, WOG, SOCAR, Amic Energy, Shell, Softkey, Maxnet, TENET, NGO “Vsad “IT-babushki” , King Cross Leopolis (Lviv), Megamall (Vinnytsia), Karavan (Dnipro), Dafi (Dnipro), Ornava (Ternopil), Woodmall (Khmelnytskyi), Concord (Poltava), Dafi (Kharkiv), Hollywood (Chernihiv), Avenir Plaza (Bucha), Ocean Plaza (Kyiv).
JSC OTP BANK, as part of a joint program with the European Bank for Reconstruction and Development (EBRD), offers small and medium-sized enterprises (SMEs) investment loans to support their business in times of war with the possibility of compensation for part of the costs financed by the Bank’s credit facilities. The parties have recently signed a new cooperation agreement that will allow OTP Bank to provide EUR 120 million of financing to the Ukrainian private sector with the participation of the EBRD through a 50% credit risk coverage instrument on a portfolio basis.
“This program is, in fact, a successful expansion of the previous cooperation with the EBRD, which was in great demand among our clients, and is aimed at supporting such critical industries as agriculture, production and trade of essential goods, logistics services and others. Thanks to this lending instrument, companies are able to continue their operations, develop and ensure the availability of goods and services to the population,” said Natalia Kondratchuk, Head of Corporate Finance Department of OTP Bank.
“Such loans under portfolio guarantees can be used to support long-term investments of SMEs in green technologies (modern agricultural machinery and other energy-efficient equipment, solar panels for power plants to meet their own needs) that meet the standards of the European Union and will help increase the competitiveness of enterprises in domestic and foreign markets. After the investment project financing is implemented, SME borrowers will be able to apply for investment incentives (cash compensation, cashback) provided by the EU under the EU4Business initiative.
The amount of compensation depends on the type of assets acquired and the complexity of the project and can be up to 15% of the amount of loan funds received. Reimbursement is made in euros after documentary evidence of the intended use of funds by the SME borrower and verification of documents by the European Bank for Reconstruction and Development.
The signed agreement is a continuation of the cooperation between the EBRD and OTP Bank in supporting Ukrainian business, which began in 2022. One of the components of this cooperation is the implementation of a program to increase the competitiveness of small and medium-sized enterprises in the EU’s Eastern Partnership countries. Since the beginning of the full-scale war, the total amount of new financing from Ukrainian banks, supported by similar EBRD guarantees, reached about EUR 900 million as of the end of 2023.
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JSC OTP BANK has introduced a new service – sale of domestic government bonds from its own portfolio in the OTP Bank UA application. From now on, customers have the opportunity to purchase domestic government bonds at any convenient time, regardless of the date of the Ministry of Finance of Ukraine’s auctions.
“The new functionality opens up even more opportunities for investing in government securities, as well as allows you to choose the optimal bond rate and maturity. The service is already available online to all individuals who have opened a securities account in any branch of the Bank,” said Valeria Ovcharuk, product owner of OTP Bank.
According to her, the process of buying government bonds is convenient and fast. “The OTP Bank UA app offers an easy interface for purchasing government bonds. Just a few clicks and the securities are in your bond portfolio. It is a reliable and profitable investment in the future, as the repayment of domestic government bonds is 100% guaranteed by the state,” emphasized Ovcharuk.
Investing in domestic government bonds is not only an opportunity to support the financial stability of Ukraine in times of war, but also a good opportunity to diversify your savings and receive additional income in both hryvnia and foreign currency.
Last fall, OTP BANK opened the opportunity to buy domestic government bonds directly at auctions of the Ministry of Finance through the OTP Bank UA application. During 2023, the Bank’s customers purchased domestic government bonds for a total amount of UAH 6.3 billion in equivalent, which is 153% more than in 2022.
As a reminder, in 2023, OTP Bank was ranked fourth among Ukrainian banks in the overall rating of primary dealers, according to the Ministry of Finance of Ukraine.
The status of a primary dealer provides the exclusive right to participate in the placement of domestic government bonds conducted by the Ministry of Finance, both on its own behalf and for clients of individuals and legal entities, as well as banks and financial companies that do not have such a status.
To learn more about investing in domestic government bonds through the OTP Bank UA app, please follow the link.
The net profit of OTP Bank (Kyiv) in January-March this year amounted to UAH 1.56 billion, which is 7.8% better than the result for the same period in 2023, according to the quarterly consolidated financial statements of the financial institution.
According to them, the bank’s net interest income decreased slightly by 0.6% to UAH 2.14 billion, while net commission income decreased by 23.2% to UAH 247.3 million.
Since the end of 2023, OTP Bank’s assets have increased by 2.2%, or by UAH 2.2 billion, and reached UAH 104.2 billion as of March 31. This increase was primarily due to an increase in loans and advances to banks by 21.5% to UAH 26.1 billion and to customers by 2.7% to UAH 25.5 billion.
The portfolio of loans to legal entities and individual entrepreneurs decreased by 0.3% to UAH 26.2 billion, consumer loans to households – by 5.4% to UAH 4.76 billion, while loans under repurchase agreements increased by 69% to UAH 1.79 billion.
It is indicated that balances on accounts with the National Bank of Ukraine (NBU) decreased by 9.5% to UAH 9.05 billion, while cash on hand increased by 41.6% to UAH 1.18 billion.
According to the report, OTP reduced its investments in securities by 7.2% to UAH 40.24 billion.
Since the beginning of this year, the financial institution has managed to increase its customer accounts from UAH 81.16 billion to UAH 83.63 billion, and the bank’s total liabilities have increased from UAH 85.5 billion to UAH 86.3 billion.
It is noted that the bank’s capital increased by 9.2% to UAH 17.9 billion, including retained earnings by 19.4% to UAH 9.6 billion.
The financial report indicates that the remuneration of key management personnel for the first three months of this year included short-term payments of UAH 12.9 million, which is 40% less than in the same period last year.
Since June 1, 2006, OTP Bank has been a 100% subsidiary of the Hungarian OTP Bank Plc. According to the National Bank of Ukraine, as of April 1, 2024, OTP ranked 11th in terms of assets (UAH 112.26 billion) among 63 banks operating in the country. The financial institution’s net profit for 2023 amounted to UAH 3.71 billion.
In May, JSC OTP BANK introduces a new service – the sale of domestic government bonds in the OTP Bank UA application from the Bank’s own portfolio. Thus, the purchase of domestic government bonds will be available at any time, regardless of the date of the Ministry of Finance of Ukraine’s auctions.
According to Valeria Ovcharuk, OTP Bank product owner, the new service will give customers more opportunities to choose the optimal bond rate and maturity. “Last fall, OTP Bank provided its customers with the opportunity to buy domestic government bonds directly at auctions of the Ministry of Finance through the OTP Bank UA application. To offer even more opportunities for investing in government securities, we have developed a functionality that will allow individuals to buy government bonds from the Bank’s portfolio online. We conducted an internal study within the Bank, analyzed requests from our customers regarding the desired maturity and currency for investments, and based on this, we formed a portfolio of securities for sale. This way, customers will be able to combine the optimal rate and investment period. The service is at the testing stage and will be available to users in May,” said Ms. Ovcharuk.
She emphasized that buying government bonds in OTP Bank is convenient and fast. “Just a few clicks in the application and government securities are in your bond portfolio. At the same time, you are making a profitable and reliable investment in the future, as the repayment of government bonds is 100% guaranteed by the state. At the same time, it is an opportunity to help the Ukrainian economy,” emphasized Ms. Ovcharuk.
The service will be available online to all customers who have opened a securities account at any branch of OTP Bank.
As a reminder, according to the Ministry of Finance of Ukraine, OTP Bank was ranked fourth among Ukrainian banks in the overall rating of primary dealers in 2023.
The status of a primary dealer provides the exclusive right to participate in the placement of domestic government bonds conducted by the Ministry of Finance, both on its own behalf and for clients of individuals and legal entities, as well as banks and financial companies that do not have such a status.
To learn more about investing in domestic government bonds through the OTP Bank UA app, please follow the link.
Comprehensive “green” transformation in Ukraine is gaining special importance and is already affecting business. JSC OTP BANK takes into account the trends and has planned a number of activities to create its own system of social and environmental management, said Maxim Oliynyk, ESG Manager of the Bank, during the open dialogue “Green Agenda for Ukraine: Special Role and Unique Challenges for Banks” with the participation of representatives of the NBU, EBRD, KSE and a number of Ukrainian financial institutions.
“OTP Bank is actively working to support and develop green technologies and social responsibility of Ukrainian business. We are currently developing our own environmental and social management system, which will be harmonized with the requirements of the European Union and will help the Bank to create its “green” portfolio,” said M. Oliynyk.
According to the ESG manager, OTP BANK is guided by EU standards in the field of green and sustainable technologies and practices aimed at reducing the risks and uncertainty that investors face when financing such projects. “In supporting green and sustainable technologies and practices, the Bank must not only meet the requirements of the EU and the Parent Bank, but also strictly adhere to the rules dictated by the National Bank of Ukraine, as ESG is becoming a necessity,” he emphasized.
According to Maxim Oliynyk, a comprehensive “green” transformation opens up access to the resources of global investors and modern European technologies, which, in turn, will contribute to the development of Ukraine’s economy and increase the number of potential requests for financing. Taking this into account, as well as the desire to use the opportunities that are opening up, OTP BANK has developed an ESG Strategy that provides for
– creation and implementation of all components of the social and environmental management system (policy on environmental and social issues, a separate communication channel, building institutional and human capacity)
– creation of separate “green” products and development of its own “green” portfolio, taking into account clearly defined and verified sustainability criteria for products (EU Taxonomy, Climate Bonds Taxonomy, Sustainable Finance Framework and Green Loan Framework of the Parent Bank);
– Inventory of the Bank’s greenhouse gas emissions and development of measures to reduce the carbon footprint;
– improvement of the ESG and sustainability training program for all OTP Bank employees, as well as other tasks in the field of environmental protection and social responsibility of the Bank.
