Senior Vice President, Head of Digital Business at PSB Alexander Chernoshtekin talks about the prospects for the development of digital business lending. The speaker spoke at the round table “Credits for Business: Digital Rethinking”. The event, organized by PSB, took place on November 14 at the Forum for Innovative Financial Technologies Finopolis 2021/2022.
Alexander Chernoshchekin recalled that PSB was the first in the Russian banking market to launch an online business credit service that allows entrepreneurs to get the necessary financing in a short time and with only two documents.
“We are now working to make the lending process completely paperless. And although even now 30% of the loan guarantee portfolio of PSBs are loans issued online, and the share of online decisions in terms of the number of concluded agreements reaches 90%, it can be argued that the credit revolution in small and medium the business has just started – in the next five years, all collateral, guarantees, loans will be issued and issued electronically, without a single document.” – noted Alexander Chernoshtekin.
According to him, plans to transfer lending to small and medium-sized businesses in an electronic format appeared in PSBs as early as 2016.
“It has become clear that the accumulated successful experience in business lending is faced with increased costs for issuing small amounts, for example to small and micro enterprises. It was difficult for entrepreneurs to make an adequate credit offer, as small amounts also required analysis and required a lot of work to work with documents.” he said Alexander Chernoshtekin.
The bank solved this problem by introducing digitization. The development of online services has reduced the number of paper documents to a minimum, and in some cases made it possible to do without them completely.
The introduction of modern digital solutions helped PSB become one of the market leaders and issue a record number of preferential loans during the pandemic.
“As part of the business support program, the so-called payroll 2.0, in two months we issued more than 30,000 credits with a total value of more than 50 billion rubles, and then took second place in the number of credits issued. Technology just made it possible to make such a volume of loans,” he said Alexander Chernoshtekin.