Choosing a bank to open accounts, deposits, cards and loans for your plans can be challenging. As part of the maib edu initiative, Anna Russu, Head of the Retail Segment Orchestra at maib, talked to journalist Pavel Zingan about the criteria for choosing a bank.
Anna, hello. Let us jump to questions. Is the cost of the bank's services a primary criterion in choosing it?
In most cases, no. Price competition between banks is continuous. Inevitably, the prices of services align. And if you calculate them not in percentages but in absolute figures, we are talking about amounts that are too insignificant. One leu or 70 cents - you won't feel the difference.
Such differences are significant for companies with turnovers in the millions; for individuals, they are almost invisible.
Thus, a potential customer has to pay attention to other aspects than price.
How safe is the bank?
For many years now, the National Bank's balanced policy has ensured the stability of Moldova's banking system, irrespective of size, be it large or medium. When referring to a bank's potential, it is necessary to look at its size from a different perspective. In the past, the advantage of a mobile operator was that there were preferential rates for calls on the network. In this respect, the 'size' rule also applies to banks.
Could you explain?
For example, P2P transfers. The volume of these increases annually. For customers of the same bank, no fees are charged for P2P transfers. If a bank has the highest number of customers in the country, then from a probability theory point of view, you have a better chance that the next time you are a customer of that bank, you will not pay for the transfer. The same goes for the ATM network. A large bank has an extensive ATM network. By opting for a bank, you should pay attention to such aspects.
What would be another criterion?
As a potential bank customer, I would look at the ecosystem created by that bank.
Do you refer to an example, such as CasaHub at maib, that offers additional advantages and possibilities for customers buying real estate?
Definitely, but when I talk about the ecosystem, the aspect is more general. I mean the totality of the bank's partner relationships. Regarding cashback or interest-free instalment purchases, it's not just the terms of the cards offering these essential services but also the partner network. In the case of cashback, not only are conditions essential but also the number of points of sale where it is available; the difference between 100 and 1000 is significant.
Okay. But what would be the main criterion you recommend in choosing a bank?
Currently, the quality of the bank's mobile app makes the difference in choosing a bank. And that's not just my opinion, but the results of surveys or even from the work of our dedicated salary projects team.
Digital first?
Right. Because time is the modern world's most precious resource. The driver feels the lack of being stuck in a traffic jam or making the third shift searching for a parking space, and the passenger on public transport. The ability to 'communicate' with the bank from the sofa at home, your office, or café is becoming increasingly valuable. In other words, choosing a bank's mobile app is a choice about how much free time we have left for ourselves and our families.
How would you analyse the advantages of a particular banking app for individuals? Product range and simplicity. For example, only in the application developed by maib - maibank - it is now possible to get a loan of up to 200 000 MDL end-to-end digitally. All you need is a bank account and the mobile app downloaded on your phone. The figures demonstrate the popularity of this service. If in January 2023, the share of loans granted online was 32%, in December 2023, it reached 59%.
Or one more aspect - biometrics.
I haven't installed it yet because of laziness, I admit.
Probably because you're always travelling with roaming, we're working hard to reduce the transactions that require SMS confirmation, but still, some remain. And biometrics is the perfect solution if you are outside the roaming zone or part of the Moldovan diaspora and live abroad. So, for transactions, you just need the Internet, and our biometric security system will take care of security. Since last September, we have launched digital onboarding, and you can become a bank customer online without visiting the bank. By "onboarding", I mean opening a bank account online and accessing a whole range of banking services.
I thought this would never happen.
As of September 2023, such a service has received the necessary approvals from the National Bank. I emphasise that customers who open a bank account remotely are not yet available for all operations. Opening a digital card and transactions with it, including P2P and opening a deposit account, are available, but a visit to the bank is still required to grant loans. However, in the future, these restrictions will be removed. We are working on it.
What was the customers' reaction to this service?
In 2023, we already had 1014 customers choosing maib through digital onboarding, and we anticipate an increase.
Returning to the mobile app.
Let's skip the features because I could talk about them for a long time. For example, a common situation - you start shopping online, and the card is either in another room or even in your desk drawer. But you have to enter the CVV code. In the maibank app, this data is available in the general card information. You don't need to get up from the sofa anymore. Even the PIN code can be changed from the app.
Or the BNPL service - Buy now, pay later. If you need money, you can check the payments you have made in the past months in the maibank mobile app, choose one of them, instantly return that payment to your account and split that amount into instalments for a few months.
Or update your data online. You no longer need to visit your bank for a regular personal data confirmation procedure. It can be done online.
Anna, to conclude...
Finally, I will formulate the most important criteria for choosing a bank. It is the confidence that the bank you opt for will offer more than other banks because of its philosophy and its development dynamics. It is not just a statement. Just analyse the news that banks publish, and ask your friends how often their bank informs them about new products and opportunities. I would choose a banking institution that has put the philosophy of making the customer happy in the forefront.
