VTB completed the first stage of integration of Otkritie Bank's auto business, renewing contracts with all key dealer partners and expanding the pool of automakers with new brands. In the near future, the bank will begin transferring the client portfolio while maintaining all terms of service.
As part of the first stage of integration, VTB connected 35 new dealer partners, more than 200 car dealerships, and also issued 380 mobile and POS agents. In addition, 5 partners among automakers are connected to the group — the brands Chery, Jetour, Livan, Hisun and Compass.
Since the beginning of March, the partner network of car dealerships has stopped accepting applications for car loans from Otkritie Auto (the auto business unit of Otkritie Bank), the issuance of which will be completed by the end of the month. The entire flow of new applications is now for VTB systems and products. In addition to the partner network, clients can apply for a VTB car loan at branches and on the bank’s website.
In the near future, banks will begin the next stage of integration — the assignment, which will last until the end of the year. All borrowers with car loans from Otkritie Bank will receive notifications about the transfer to VTB. The client portfolio, which includes 133 thousand contracts, will be transferred seamlessly. At the same time, borrowers will continue to be serviced under the same conditions: term, interest rate, size and date of monthly payment, and loan amount will remain unchanged for them. Only payment details will change.
After completion of the assignment stage, VTB will become the legal successor of all obligations of Otkritie Auto.
“We already have effective experience in integrating the auto business within the framework of the association: the RGS team organically merged into the Otkritie Bank group in 2022. Best practices are now transferred to the VTB team. It is important that all key partners will continue to cooperate with the group, and customers will receive attractive service conditions,” said Marina Dembitskaya, head of Otkritie Auto.
“VTB has become a leader in the car lending market and today issues approximately every fourth loan, our share in the volume of issuances has reached 22%. Combining the experience of two major financial players will further strengthen the position of the VTB Group and offer customers a wide range of programs for purchasing a car,” commented Evgeniy Dyachkin, Vice President, Head of the Sales Department in VTB partner channels.
At the end of 2023, Otkritie Auto confirmed its position as the largest player in the car lending market, entering the top five leaders in the portfolio with a market share of 7.5% and taking 6th place in terms of issuances (8% of the market).
Since the beginning of 2024, VTB offers for debit and credit cards, mortgage loans, deposits and savings accounts have become available to Otkritie clients. Clients with an active premium status are offered free service and the VTB Privilege package. In December 2023, a gradual transfer of the network of Otkritie branches under the VTB brand began. In total, more than 250 Otkritie offices will merge with VTB Bank (PJSC) in 2024.
The main stage of integration will begin in the second half of April. In addition to customers with car loans, all debit card holders, depositors and mortgage borrowers should receive offers to transfer to VTB. At the same time, all conditions under existing agreements on credit products, including the interest rate, for Otkritie clients will not change. Clients will be offered to open a new deposit or savings account from the VTB line on more favorable terms. The actual merger of the two banks' businesses will occur by the end of 2024.
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