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Financial & business-planning

Kviku forecasts in early 2018 a large influx of private investors into microfinance institutions

by Alexander Shestakov, from Kviku, on Nov 22
The company's experts associate this process with the liquidation of VTB-24 as an independent legal entity, a significant proportion of its investors will seek new investment opportunities.

January 1, 2018, one of the largest Russian banks VTB-24 formally ceases to exist, whose entire infrastructure will continue to develop retail business in Russia after joining the main VTB.
According to Deputy Chairman of the Board of VTB Anatoly Pechatnikov in an interview with BFM, the more favorable terms on deposit rate won't be used as a tool for attracting depositors. At the same time, the current number of bank customers is estimated at about 10 million people, 30% of which belongs to the mass segment with a total deposit volume of about 1 trillion. rubles.
In this regard, Kviku analysts forecast a significant outflow of some of VTB-24's customers, especially from the mass segment, as well as increased demand on their part for alternative investment tools, among which one of the most sought after recently is investing into microfinance institutions (MFI).
After a number of measures to regulate the MFI market by the Central Bank, a part of microfinance companies received the status of IFC, which gives them the right to raise funds from individuals. The initiatives of the regulator contribute to the increase of general trust in MFIs.
So, since the beginning of 2017, there has been a large influx of private investors into such companies. Experts attribute this phenomenon to the relative safety of such investments, due to the increased transparency of microfinance companies. In addition, investments in MFIs are currently characterized by a fairly high profitability - an average of 20% per annum.
According to experts of Kviku, by the end of this year, the volume of investments from individuals can reach 22 billion rubles. The annual growth in investments in MFIs in the last few years was at the level of 16-17%, but due to the liquidation of VTB-24, this figure could grow to about 26%. There is also an increase in the share among investors of microfinance companies from the regions. Approximately 90% of MFI investors choose this investment tool repeatedly while increasing the duration of their investments, which indirectly indicates an increase in the level of confidence in MFIs as an investment instrument.

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