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EY Ukraine presented 2018 Private Banking Survey

27/ 11/ 2018
  KYIV, 26 NOVEMBER 2018. EY specialists presented the results of the EY Private Banking Survey, which analyzed the market of Private Banking services in Ukraine. According to the Survey, in 2018 the revenue from Private Banking services grew by an average of 18%, and the number of active Private Banking clients — by 37%. For the first time, not only representatives of banks but also their clients took part in the Survey. The study provides an assessment of different aspects of Private Banking, such as its organization in banks, products and services provided to customers, loyalty programs, customer profile, trends of development, etc. “Currently the potential of the Private Banking market in Ukraine remains undiscovered. Still, the research results show a positive dynamics of Private Banking development over the past year, for instance a significant increase in the number of active customers and an improvement of the quality of services. One of the key factors that contributed to the development of Private Banking in 2018 is the gradual liberalization of monetary legislation in Ukraine. Additionally, it should be noted that the demand for investments abroad and the opening of foreign accounts has increased among clients,” commented Halyna Khomenko, Director, People Advisory Services, Private Clients Services Leader, EY Ukraine. Among noteworthy trends that determine the market development are: growing interest in opening foreign accounts and investment abroad, growing popularity of investment instruments, strengthening of requirements in the quality of services and technological support of banks, and stricter requirements for asset returns. EY specialists also observed the changes in the portrait of the Private Banking client. Most clients are citizens of Ukraine (94%), business owners (38%) or hired managers (36%) and have an annual income of over UAH 1 million (71%). Most of these clients are men aged 35 to 45 years. Among popular services were: deposit and account maintenance (89%), elite bank cards (82%), concierge service (44%), interbank currency exchange (35%), loans (29%), analytical and informational support (22%). During 2018, a number of new services appeared, namely: electronic licensing, operations with government loan bonds, lending programs, investment operations, premium packages, special deposit certificates, partnership programs, as well as brokerage and insurance services. These innovations are primarily related to the adoption of the Law “On Currency and Currency Transactions”, which should ensure the transition of Ukraine to a new currency regulation model. It contributes to free conduct of currency exchange operations and free currency movement during the operations between residents and non-residents. A large number of Private Banking clients indicate the availability of online and mobile banking services. 56% of Survey participants noted that the availability of modern and convenient online banking services is one of the key criteria for choosing a bank. According to representatives of banks, the Private Banking services market remains very promising, because 33% of potential customers are not involved. The removal of currency restrictions and the resumption of operations with stock markets could be the main opportunities for further development of the market in subsequent years, according to the participants of Survey. EY is grateful to all participants who participated in the Survey. About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Contacts Olga Danchenkova, PR Manager, EY Ukraine +380 (44) 490 30 00, (067) 659 56 59, Olga.Danchenkova@ua.ey.com

KYIV, 26 NOVEMBER 2018. EY specialists presented the results of the EY Private Banking Survey, which analyzed the market of Private Banking services in Ukraine. According to the Survey, in 2018 the revenue from Private Banking services grew by an average of 18%, and the number of active Private Banking clients — by 37%.

For the first time, not only representatives of banks but also their clients took part in the Survey. The study provides an assessment of different aspects of Private Banking, such as its organization in banks, products and services provided to customers, loyalty programs, customer profile, trends of development, etc.

“Currently the potential of the Private Banking market in Ukraine remains undiscovered. Still, the research results show a positive dynamics of Private Banking development over the past year, for instance a significant increase in the number of active customers and an improvement of the quality of services. One of the key factors that contributed to the development of Private Banking in 2018 is the gradual liberalization of monetary legislation in Ukraine. Additionally, it should be noted that the demand for investments abroad and the opening of foreign accounts has increased among clients,” commented Halyna Khomenko, Director, People Advisory Services, Private Clients Services Leader, EY Ukraine.

Among noteworthy trends that determine the market development are: growing interest in opening foreign accounts and investment abroad, growing popularity of investment instruments, strengthening of requirements in the quality of services and technological support of banks, and stricter requirements for asset returns.

EY specialists also observed the changes in the portrait of the Private Banking client. Most clients are citizens of Ukraine (94%), business owners (38%) or hired managers (36%) and have an annual income of over UAH 1 million (71%). Most of these clients are men aged 35 to 45 years.

Among popular services were: deposit and account maintenance (89%), elite bank cards (82%), concierge service (44%), interbank currency exchange (35%), loans (29%), analytical and informational support (22%).

During 2018, a number of new services appeared, namely: electronic licensing, operations with government loan bonds, lending programs, investment operations, premium packages, special deposit certificates, partnership programs, as well as brokerage and insurance services. These innovations are primarily related to the adoption of the Law “On Currency and Currency Transactions”, which should ensure the transition of Ukraine to a new currency regulation model. It contributes to free conduct of currency exchange operations and free currency movement during the operations between residents and non-residents.

A large number of Private Banking clients indicate the availability of online and mobile banking services. 56% of Survey participants noted that the availability of modern and convenient online banking services is one of the key criteria for choosing a bank.

According to representatives of banks, the Private Banking services market remains very promising, because 33% of potential customers are not involved. The removal of currency restrictions and the resumption of operations with stock markets could be the main opportunities for further development of the market in subsequent years, according to the participants of Survey.

EY is grateful to all participants who participated in the Survey.

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

Contacts

Olga Danchenkova, PR Manager, EY Ukraine

+380 (44) 490 30 00, (067) 659 56 59,

Olga.Danchenkova@ua.ey.com

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