Banking services for business

Банковские услуги для бизнеса

Specialization in corporate banking allows ProCredit Bank to increase its loan portfolio despite the stagnation of the financial market of Ukraine.

The current low level of lending to the Ukrainian economy, hampering its recovery. At a time when the banking industry virtually froze lending to the production of goods and services, Bank one continues to work successfully with the business. Focusing on business clients, ProCredit Bank in 2016 has increased its credit portfolio by 50%, i.e. almost 100 million euros. In 2017, the Bank has a chance to repeat this success, as for the first six months of the year its loan portfolio grew by 25%.

Business is the main priority

Chairman of the management Board of ProCredit Bank in Ukraine, Viktor Ponomarenko says that the success of his companies due to specialization in working with business clients. “We were able to almost fully concentrate on the needs of medium-sized businesses, he said. —Such specialization enables us to offer a significantly higher quality of service than if we tried to work on a wide market. It also provides us the flexibility that we have not all the big banks. We understand the needs of our clients and provide them with services, taking into account all the peculiarities of modern Ukrainian business environment. Another advantage of our Bank speed of decision-making, and appreciate it businesses that become our customers in the last few years.”

This unique approach has allowed ProCredit Bank to win the trust of many Ukrainian enterprises which need investments for the successful existence in a changing business environment. Now, many Ukrainian companies are in need of modernisation in order to enter new foreign markets. Of particular relevance it acquires in the context of the Association Agreement between Ukraine and the EU (EUAA), which was opened by Ukrainian companies free access to EU markets, but at the same time obliges them to coordinate their activities with the European Union regulations. Victor Ponomarenko noted that more and more companies are looking for funding to take advantage of these opportunities. The consequence of this, in particular, was the increase in the number of customers of the Bank in recent years. “Most of our customers have expanded their activities or invested in the industry, directly associated with free trade in the framework of the EUAA. This has opened new opportunities and created many incentives for funding. In my experience I can confirm that most medium-sized enterprises in Ukraine is taking steps towards modernization to meet EU standards. From 2015 we have partnered with hundreds of famous Ukrainian companies, representatives of medium business. They have received recognition from Ukrainian consumers, however, for access to the European markets need additional investment. The process of raising funds is already underway”.

Agriculture, manufacturing and renewable energy

ProCredit Bank has identified three priority areas of cooperation with the business — agriculture, manufacturing and renewable energy. These three sectors have great potential and could take advantage of the changes that are taking place in the Ukrainian economy. “All these industries are critical for market reforms in Ukraine, — said Ponomarenko. — We expect that in a few years they will play a much more important role in the development of the Ukrainian economy. We now see that production companies are increasingly willing to invest in fixed assets to improve and expand their activities. Enterprises gradually phasing out the use of raised funds primarily for working capital, because it allows only to maintain the current level of production. Now it is possible to observe a trend towards a more long-term planning and increase the number of investment loans.”

Specialization requires not only deep industry knowledge, and quality training. No new employee ProCredit Bank begins direct communication with the customers until the six-month training program. Training is conducted in Ukraine and in the training centers abroad. Victor Ponomarenko noted that it is difficult to find staff that is well versed in rapidly developing sectors — agriculture, renewable energy etc., However, according to him, the Bank successfully solves this problem by combining a careful selection of quality training.

Competition is a good thing!

Impressive figures, published ProCredit Bank reflect the huge potential of the Ukrainian business, and this, of course, attracts the attention of other participants of the market of banking services of the country. Victor Ponomarenko claims that ProCredit ready to higher competition, and noted that greater attention of banks to the business sector cannot be avoided and a recovery in the market will be beneficial to the Ukrainian economy as a whole. “Competition already exists, and it is necessary to maintain the quality of services. In the end, market demand is too large, so it can meet only one or two banks. To create a balance between demand and supply Ukraine needs more banks to serve business clients.”

Although in the past two years, ProCredit Bank achieved high growth, Viktor Ponomarenko is sure that the Bank’s loan portfolio can be further increased. “Our results give reason to expect further development. Undoubtedly, the Bank in the future will be able to provide funding to business,” he says. Now the Bank is working to prepare all of their units to the growth in the loan portfolio in 2018. “The demand for our services exists. We have the ability to secure the necessary funding new customers — concludes Ponomarenko. We are ready to grow and we welcome new customers.”