The transfer of Ukrsotsbank’s business to Alfa-Bank (both based in Kyiv) has completed in fact: Ukrsotsbank has around 6% of clients of the number of clients as of early 2017 left on its balance sheet, and the legal merger is expected this autumn, General Manager of the board of the Alfa-Bank banking group, Board Chairman of Ukrsotsbank Ivan Svitek has said. “The merger has actually ended, as all the time we focused not on a legal merger, but on transferring the active business of Ukrsotsbank to the platform of Alfa-Bank Ukraine,” he said in an interview with Interfax-Ukraine.
He said that only 11,000 of these 6% of clients are active.
Svitek recalled that in 2018, 80% of customers and 90% of balances were transferred from Ukrsotsbank, and the more complex issue of a unified IT system was completed a few weeks ago.
“At Ukrsotsbank, we have migrated more than 8 million accounts to Alfa – both opened and closed, and closed almost 90% of all IT systems and servers, including disconnection of all mobile applications and Internet banking from the system. We have already closed all branches of Ukrsotsbank and almost all of its employees were transferred to Alfa Bank. Only cash collection and one branch of Ukrsotsbank remained,” the head of the banking group said, describing the current situation.
He said that the migration of up to 90% of clients is a very high figure for the merger of banks.
“For us in this process, quality was more important than quantity. Therefore, we are pleased with the result,” Svitek said.
According to him, the largest portfolio that remained on the Ukrsotsbank’s platforme is a portfolio of bad loans, but debtors of the bank should not hope for relief after joining Alfa-Bank.
“Therefore, the legal merger de facto will not affect either the clients or the creditors of Ukrsotsbank,” Svitek said.
He said that the issue of the legal merger is still open and will be discussed at a meeting of the supervisory board in the coming weeks. The head of the group predicted that legally the merger will occur this autumn.
Asked about the brand of the merged bank, Svitek said that there is still no final decision on this matter. He said that new Strategic Marketing Director Natalia Palina, who earlier worked for Jacobs Douwe Egberts and has extensive experience in FMCG, recently joined the team. Until the end of September, she is conducting another in-depth study, the results of which will again weigh all the pros and cons of the decision to change the brand,” the head of the banking group said.
“…it would be very easy to make a decision if Alfa-Bank’s brand lost its value and strength, but this is definitely not the case. Now, only the coming legal merger is actually pushing us to rebranding. Therefore, we are weighing this step again and again,” Svitek said.
He said that rebranding is a very serious procedure and a major stress for the company, so the task is to make the right decision.