OTP Bank is set to launch private banking services early next year, by operating closely with its division specialising in asset management.
"The subsidiary that specialises in asset management is currently being authorised by CNVM, and will hopefully become operational in November.
"We will subsequently start providing private banking services. To begin with we intend to keep a low profile, but will officially launch next January," Laszlo Diosi, the bank's general manager (CEO), told ZF.
The bank's portfolio already includes clients matching the private banking customer profile, believes Diosi, as OTP has traditionally focused on the upper-end of both income and the medium segment. In principle, OTP includes customers with liquid capital worth above 100,000 euros on the private banking segment.
The domestic private banking market remains small, despite a series of players announcing their arrival this year.
Foreign banks with traditional private wealth management services, and even hundreds of years worth of experience, have entered the domestic market, using the European financial passport facility.
In addition, a series of domestic small and medium scale banks have decided to launch private banking services for their customers.
Benefiting from the group's experience in this field, OTP Romania has already established a team, which will operate from a special location in Bucharest.
Despite still being a second tier player, Hungary's OTP bank has managed to actively expand its business within the past two years, after entering the market in 2004 by acquiring a small bank, RoBank.
The Hungarian bank recently operated a capital increase worth 20m euros, which means OTP Bank Romania now has a share capital worth 110m euros. Diosi says the capital injection was carried out in order to maintain solvency indicators at comfortable levels amid a rapid increase in turnover.
Diosi says OTP has managed to considerably boost the funds raised from customers, after operating several promotions for its savings products in the second half of the year. Now, the bank holds around 1% of deposits in the system.
OTP has also developed a group structure around OTP Bank Romania over the past year.
As for the retail market trend, the head of OTP Bank says he does not foresee any significant changes from last autumn.
"The market is continuing to witness rapid growth, but product sophistication remains low.
Nobody is rushing to boost product sophistication unless they get a competitive edge from it. Probably there's no demand on the market," adds Diosi.
In addition, OTP is set to upgrade its card network to also accept chip cards.
OTP Bank
Will launch private banking services early next year, by operating closely with its division specialising in asset management.
Benefiting from the group's experience in this field, OTP Romania has already established a team, which will operate from a special location in Bucharest.
Has recently operated a capital increase valued at 20m euros, which means OTP Bank Romania now has a share capital worth 110m euros
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