At any point of the digital transition,…
Yandex plans to independently introduce financial products on the market after failed attempts to develop fintech partnerships with Sberbank and Tinkov. This could arise in the next 12 months, while the company’s offline ventures are not interesting.
Thursday, 19 November 2020, 13:48 GMT
It’s certainly going to be Fintech, although it’s not yet sure what
In an interview with RBC, Tigran Khudaverdyan, Yandex’s managing director, said Yandex plans to enter the fintech industry in the next 12 months. “in the coming weeks or months”to switch from words to actions”move from words to deeds
Tigran Khudaverdyan said, “Our ambitions strongly depend on which path we take.” – We’re going to decide to create it from scratch or it’s going to be some sort of collaboration. To worry about some particular items, it is too early. We haven’t formulated ideas too much so that they can be articulated. However the practical timeframe during which we will issue the first loans and cards is roughly 12 months. “
Yandex is contemplating only the online format despite the unpreparedness of a general approach in the financial industry and is certainly not interested in opening offline bank branches, the CEO of Yandex reports to RBC.
Will there be branches of banks? We are not at all looking in this direction. For a mass consumer, it would undoubtedly be a full-fledged online facility, as far as the law requires,’ Tigran Khudaverdyan observed.
Banking from Cornerstone
After the “divorce” with Sberbank, which eventually got “Yandex.Money”, and the failed deal to acquire Tinkoff Bank, the company has not yet formed an exact strategy for entering the banking sector, but there is already an understanding that this “requires have a banking license, “Tigran Khudaverdyan said in an interview with RBC.
“We are choosing between different strategies now we’re going to do it in partnership, it’s going to be inorganic growth through, perhaps a purchase or merger with other players, or maybe we’re going to start everything from scratch,” he said.
Speaking of the reasons why Yandex agreed to send Yandex.Money to Sber, and not abandon it for the development of its own fintech, Khudaverdyan noted that Yandex.Money has already already been a Sber business established along its own path all these years.
“We made a decision that the Yandex.Money company is not appropriate for our future fintech strategies, so we made a decision like that there was no special “back thinking” in selling it said Yandex’s head.
Commenting on the failure to acquire Tinkoff Bank, which would have given Yandex the requisite banking license, Khudaverdyan described it not as an acquisition, but as a “merger of two undertakings” and as a consequence of which the bank had to remain as independent as possible” because it is impossible to absorb such a large undertaking.” “
For the future, Yandex does not preclude the prospect of collaboration with Sberbank or Tinkoff in the banking field, according to Khudaverdyan, because in his words, “we have no grievances.”
In the summer of 2020, according to RBC, Yandex has already licensed 33 financial trademarks, such as YaBank, YaTrade, YaValyuta, etc. The Yandex CEO, speaking on this, termed the licensing of new trademarks “a defensive anti-capture strategy” and recommended that no subtexts” be looked for in this.
Commenting on the words of the Head of the Central Bank of Russia, Elvira Nabiullina, that large-scale economies are developed on a closed concept and catch more and more non-banking products and data, which are becoming the key competitive advantage of the financial industry, the Head of Yandex pointed out that today the business is not at all represented in the financial market and in the financial field.
Khudaverdyan is also confident that the comment made by the Head of the Central Bank on the need for independent supervision of banking market environments carries risks for Yandex.
It seems like, in recent years, the Central Bank has not been noted by any totally insane, random actions that somehow hurt one player or another so we do not see any major danger here. The game’s going to have new rules, we’re going to play by them,” said Yandex’s CEO.”
Why did Sberbank “parted” with “Yandex”
The partnership of Sberbank with Yandex started in 2009, when the bank became the holders of the Internet company’s ‘golden share.’ This “golden share” was relocated to the current Public Interest Foundation in 2019.