Azerbaijani banks prefer to make money on extending scope of customers
Baku, Azerbaijan, Oct. 28
By Azad Hasanli - Trend:
The middle class in Azerbaijan increasingly wants to receive the level of high net customer banking services, deputy chairman of the Ukrgasbank Alexey Alexandrov said.
He made the remarks during the annual Affluent & Private Banking Forum of top managers of the leading CIS banks in Baku.
He said that a similar trend is observed in many countries of the world.
"If the banks are not able to make money on a single customer, one needs to earn on their replication, that is, to work with more customers with lower incomes," he said. "Unfortunately, the [bank] card for customers of high net class and middle class is the same. The deposit is no different for a millionaire and owner of 100,000."
Alexandrov said that the investments in offices, preparation of financial instruments, experts for the last 1.5-2 years are no longer justified, and the owners of banks are starting to think whether they really need expensive specialists and such investments.
"In fact, customers need a normal office and trivial financial instruments that do not require special preparation, that is, deposits," said the head of government. "Financial planning, management of investment portfolios is not the case."
He went on to add that generation Y manifests itself more and more.
"Generation Y are those people who were born in the mid-1980s: they are already working, take over the capital, but there are those who have already earned a million dollars or more," he said. "They are more mobile, inclined to seek a balance in respect of work and life. This generation is even willing to earn less if there is a balance between work and personal life. The country and the city, where they were born, is of little importance for them. For example, they will account for 50 percent of the workforce in the US by 2020. In one way or another, this is observed in the CIS as well."
Edited by CN