Alfa-Bank - Alfa Group

Another project deserving special mention is the developmentof a VIP sector in Alfa-Bank’s client base. Towards the end of2006, Alfa-Bank opened two offices in the VIP format, while athird office is under construction. These offices are called A-Club, and are set up as a closed elite association. Their focus ison providing exclusive customer services and providing financialservices at the highest level.In December 2005, a direct sales channel was launched tostimulate intensive growth of retail banking products. This wasdeveloped further in 2006. Alfa-Bank will aim to use directsales as one of its strongest tools in promoting banking servicesamong new and existing clients. For maximum convenience inthe use of Alfa-Bank’s products, and to support customers, ithas been actively developing a network of ATM’s, which numbered831 by the end of 2006.In 2006, Alfa-Bank was considered to be the best bank in termsof customer service levels,, according to “Secret Customer”, anindependent market survey conducted by Imeesh Pravo magazineand marketing communication agency Nextep Promotion.Consumer Finance2006 was a crucial year for Alfa-Bank in promoting its consumerfinance services in the regions. At the same time, Alfa-Bank has managed to diversify its product line, optimize relationshipswith business partners, further develop distributionchannels and improve lending technologies.In 2006, Alfa-Bank’s already extensive network was enhancedwith the addition of sales outlets in 64 cities. Contracts signedwith new business partners totaled 1,575. At the end of thereporting year, Alfa-Bank had 2,418 active outlets. In 2006, theconsumer finance loan portfolio grew by 131.1% to US $171million. In the past year, the portfolio structure changed significantly:its regional share has grown to around 75% by theend of 2006 from around 40% at the end of 2005.The main strategic aims of Alfa-Bank in cooperating with tradeenterprises in 2006 were extension of the consumer loan portfolioand increase of Alfa-Bank’s share in their credit turnover.As a result of efforts made in order to reach these aims, Alfa-Bank won tenders in 2006 for strategic cooperation withnational retail networks, whereas the market in generalshowed a reduction in the number of bank partners. A significantpartnership was established with Eldorado, one of themajor players in the electronics and home appliances sector,and large gains were made in the credit turnover of commercialenterprises like Tehnosila, MIR and DIXIS.In order to improve the quality of customer service, and to simplifythe process of obtaining and repaying loans, Alfa-Bank isproactively implementing up-to-date customer service andinformation technologies. Alfa-Bank transferred the entireprocess of issuing consumer loans to an online system based ona centralized platform. This system is capable of working 24/7and of assisting clients in all the regions of the RussianFederation simultaneously, while loan approval takes only 1minute.Jointly with the development of distribution channels, thenumber of offices where it is possible to repay loans is alsogrowing and include the branches of numerous business partners,post offices of Russian Post, payment systems Eleсsnet,CONTACT, Rapida, CyberPlat, as well as money machines anddeposit terminals of Alfa-Bank. In November 2006 Alfa-Banklaunched a new internet product called Alfa-Payment (Alfa-Platezh).Auto FinanceAt the end of 2005 Alfa-Bank established its Auto FinanceProgram to introduce auto loan programs. In 2006, this businessunit issued over 15,000 auto loans for a total amount ofUS $194 million.In 2006, Alfa-Bank developed the following auto loan plans:classic car loan, express car loan, zero down payment loan.Along with the creation of these auto loan products, Alfa-Bankstarted testing and streamlining its customer service system inthis area.During 2006, Alfa-Bank made an effort to expand its presencein this sector and by the end of 2006, Alfa-Bank had establishedauto loan offices in over 60 Russian cities. The numberof car dealer offices constituting the basis for Alfa-Bank autofinancing activities, has exceeded one thousand. Alfa-Bankcooperates with both authorized dealers and non-authorizeddealers in the new and previously-owned markets for carsmanufactured in Russia and abroad.In 2006, Alfa-Bank put in place a GM Finance Private LabelAgreement to promote cooperation in the area of auto loanswith General Motors CIS, a major car manufacturer. Other keybusiness partners of Alfa-Bank include Severstal-Auto andHonda Motors Rus Co Ltd. Cooperation with big manufacturershas enabled us to develop and implement special auto loanoffers with low interest rates on car brands like Opel,Chevrolet, Saab, Cadillac, Hummer, Fiat, Ssang Yong, UAZPatriot, and Honda. These offers are valid anywhere in Russiathrough the dealer networks of our business partners whichoffer Alfa-Bank as the bank of primary choice.Mortgage LendingAlfa-Bank introduced its mortgage lending program in August2006. Alfa-Bank’s goal is to create a powerful mortgage network,based on the existing network of branches and offices,and to offer to clients a simple and convenient method to buy ahome.In the middle of 2006, Alfa-Bank successfully started its mortgageprograms in four cities: Moscow, St. Petersburg, NizhnyNovgorod, and Novosibirsk. Specialized new mortgage centerswere built in Moscow and St. Petersburg.Alfa-Bank paid special attention to the development of relationshipswith real estate companies, mortgage brokers, corporateclients, and clients of Alfa-Bank to whom mutually beneficialterms of cooperation were offered. Additionally, Alfa-Bankis able to offer the personal loan program to clients in all theareas where it is active.In 2007, new products are being planned, among them loans tobuy apartments in buildings under construction. Alfa-Bankalso plans to expand its mortgage lending activities to at leastthe twenty most economically developed regions in Russia.ALFA GROUP / ANNUAL REPORT 2006 / 29Translation: EARN 1 OR 2 BONUS MILES FOR EVERY 30 RUBLES PURCHASE PAID BY Aeroflot-MasterCard-Alfa-Bank cardEvery time you pay with the plastic card Aeroflot-MasterCard-Alfa-Bank for services or goods you earn bonus miles, which could be converted into a free air ticket or an upgraded service class.Welcome a board! As a holder of the Aeroflot-MasterCard-Alfa-Bank card you automatically receive 500 welcome miles for your classic and 1 000 miles for your Gold or Platinum card.(+7 495) 78 888 78 (for calls from Moscow) 8 800 2000 000 (toll free for calls from other Russian regions) www.alfabank.com