Maxim Gorbatenchii, product owner digital lending products at maib, discussed the evolution of online lending and the latest innovations in an interview with Pavel Zingan.
Maxim, hi. The position of "product owner digital lending products" still sounds unusual...
My main task is to build online lending processes, convert and adapt our traditional lending products to the digital environment and create new products and services to improve our customers' experience. By digital environment, I am of course referring to our mobile app maibank.
You've answered the next question, then. In today's discussion about digital lending, will we refer to lending to individuals?
That's right.
By the way, is there a "birthday" for digital lending at maib? After all, everything has a beginning.
Of course, there is. It was just over two and a half years ago. It was a "regular consumer loan" called "espresso". It was unusual that it was released entirely digitally for the first time. This was a revolution in the market. It wasn't about submitting an online application with the obligation to come to the branch to get the loan, but an end-to-end lending process in five minutes, entirely online.
This was the start. What has changed since then?
A lot has changed. 2023 was a milestone year in terms of digital lending. In early January, we added functionality to our consumer loans, which allowed us to "open up" the product to a broader range of users. We then enhanced it with new functionalities, which allowed us to increase the amounts we can offer online. That was sometime in May. Of course, improvements and adjustments were also made in the "decision engine" part, but that's another topic that deserves a separate discussion. In the end, thanks to the immense work of the whole team, about three months ago, we managed to pass the one billion loans threshold entirely online. In August, we launched credit limits for gama cards, revolving functionality, which our customers also appreciate. And now, at the beginning of December, we announced the culmination of digital lending, a new product for the Moldovan market.
You intrigued me.
The product's name is " Split in instalments", a unique product in the country, which we, as a bank, are incredibly proud of.
The intrigue has not diminished.
It is the result of the work of a great team. Just as the launch of online lending two and a half years ago was absolutely new for the Moldovan market, we have roughly the same hopes for " Split in instalments ".
What is the product about?
Split in instalments" is very different from other banking products. First, when we developed the product concept, we tried to choose those criteria and processes that fit our customers' lifestyles. We understand the customer and "tailor" a product that fits their lifestyle to solve their problems and improve their quality of life. We have kept the customer at the centre of attention at all stages of this product development.
Continuing. Second point?
The second point about Split in instalments is that it is the first product designed and created directly for digital. The products we have offered already exist offline, and we have digitised them for users' convenience. But "Split in instalments" was designed directly for digital. In the end, we got a unique product - its uniqueness being, of course, its convenience and the possibilities it offers, becoming a real help in almost every use case when financial support is needed.
While we're on the subject of cases. I am a maib customer. I have already taken digital loans. "Sell me" the "Split in installments" product.
I will give the most common example. Towards the end of the month, many of us run out of salary and wait for the next one. At these times, we often need a certain amount of money. Then we can check our maibank statements, the payments we have made, and we can choose which payment was over budget and turn it into installments, and we get back the amount we spent on the card.
I mean, for example, I bought a Dyson hair dryer as a gift, there are three days until my salary, I don't have any money left, and I return the amount I spent on the dryer and, immediately in the app, I transform the purchase made previously in installments?
Exactly. It is possible to convert either a single purchase or several purchases into instalments by combining them into a cart. There are four standard options in terms of period: 3, 6, 9 and 12 months. The advantage is that customers choose how long they want to split the purchase. Depending on this choice, the amount of the monthly payment is determined. All figures are presented transparently to the customer; this is our position - we are not credit sellers; we are partners of our customer in his financial statements; therefore, everything must be as transparent as possible.
Since we're focusing on examples, give me an example of an interest calculation.
Suppose you bought something for 2000 MDL. That doesn't mean "Dyson". I'm taking an ordinary example. To convert this amount into three-month instalments, you must pay interest of MDL 40 for these three months. Nothing more. You'll pay back 2040 MDL over these three months in three equal payments of 680 MDL each.
Yes, this is an almost imperceptible additional fee. Are there any restrictions on the types of payments that can be converted into instalments?
There are practically no limits. Whether it's buying a product offline or online or even paying for utilities, it doesn't matter where you made the payment. Maybe you went shopping in Rome or Istanbul, where you shopped. This will not be an impediment. Only very specific payments will not be accepted for lending. For example, online gambling or betting on sports competitions.
What about ATM withdrawals or P2P transfers?
These are not payments but cash withdrawals or a payment that can be converted into cash later. We are talking about a cashless payment economy.
And online payments?
Even Amazon. But there's an important detail. For "splitting in instalments", purchases or payments made with debit cards opened in Moldovan lei are suitable because the instalments are also set in Moldovan lei. This does not prevent payments from being made in foreign currency; the bank will automatically convert the required currency.
Let's continue clarifying the details. How far back can I go in my maibank statements?
Up to 90 days.
How can I find the " Split in instalments" option in maibank?
The product appears under "stories" on the first page of the maibank app. We are working on adding the option where the Convert to Installments button will be visible in the details of every transaction eligible for conversion to instalments, which will further improve our customers' experience.
Summing up the discussion, I agree that this new option in maibank is the "icing on the cake"; it's like a friend who always accompanies you on your phone and saves you when you need it.
That's precisely what we set out to do. To adapt to the customer's lifestyle and support them when they need it. Or, when you're considering a purchase now and want to split it into several payments, you can make the purchase and set the instalments immediately. What's more, we've solved another problem. Now, it is no longer necessary for the customer to ask whether they can purchase in instalments in a particular shop and what the conditions are. The decision is theirs. In this way, we offer customers a new level of financial freedom.
Last question. When will the " Split in instalments " option be available for customers?
It is already available in the latest versions of the maibank app. Just update the app to the latest version, and, voila, you can simply and easily plan your New Year shopping with the new maib product.
