Age of new technologies
In recent years Russia has seen a steady decline in the number of bank branches. The central bank reports that in the first nine months of 2023, 356 physical branches closed. Regulators attribute this to the rising popularity of digital services and the desire of banks to cut costs while maintaining convenient access to financial services.
There are tectonic shifts in the financial landscape. Competition now weighs not only on the stability of banks and financial institutions but also on the sophistication of technology and the length of time those institutions have operated in the digital space. This perspective was shared by the Central Bank governor during a major Information Society event in early November.
Digitalization does not imply an outright move to a virtual world. Banks are blending the strengths of physical and digital channels by redesigning branches and introducing new service options. Experts note that digital branches have emerged to meet customer expectations and to attract a broader audience.
Yulia Vdovina, a BSS product director involved in digitalizing remote customer services, told Kommersant that the shift to digital offices requires banks to rethink internal workflows, review business processes, and adopt new technologies. The aim is to weave innovations into operations so customers perceive a seamless experience.
The goal is not only convenience but also the deployment of electronic document management that can reduce paper-based tasks, enable faster service, and incorporate artificial intelligence and other digital tools to simplify daily banking. Many banks are embracing this pathway and favoring the new office format as more engaging and capable for users. Gazprombank, for example, plans a major office network transformation in 2024, opening 30 flagship branches in 14 cities and more than 50 micro-format branches across Russia. In Moscow, a newly opened branch on Rusakovskaya Street already demonstrates the updated design.
“The new format continues Gazprombank’s evolution of offline services. The era of new technologies has arrived, and comfort begins with choice. Creating a welcoming space for customers is essential for any company seeking to thrive in a competitive market. Banks aim to be highly competitive and customer-centric”, stated Dmitry Sauers, deputy chairman of Gazprombank’s board.
The core redesign centers on a reimagined customer area, now occupying about 70% of the space. The layout includes a barrier-free environment for people with mobility needs, with options for private, confidential meetings and flexible discussion areas with bank staff.
The office design focuses on five senses: vivid colors, varied textures, pleasant ambient music, and even wearable coffee moments. The atmosphere is enhanced by interior scents chosen to complement Gazprombank’s branding.
Focus on the customer
Beyond physical space, digital capabilities like electronic signatures and the option to pre-schedule visits via a mobile app augment the branch experience. All Gazprom group services and partner offerings are accessible at the branch, enabling customers to purchase ecosystem products in person.
“The new-format office represents a clear alignment between digital progression and outstanding service. The retail trend now centers on customer experience, speed, and quality of service,” commented Alexey Popovich, first deputy chairman and board member of Gazprombank.
Industry expert Andrei Barkhota emphasizes that revamping the bank network is vital for retail customers. Gazprombank has historically served a strong corporate client base with substantial loans and deposits, but the bank is now expanding into retail products. This includes credit cards, personal loans, deposits, and savings accounts. The bank anticipates attracting new customers and deepening engagement with existing clients through a premium offline format. The branding increasingly features orange, and ambassadors are selected for impact and achievement. The Gazprom Pay payment system underscores the close collaboration with shareholder structures.
The expert notes the timing is apt for branch transformation. Many banks are moving toward digital channels, yet customers still value face-to-face contact. There is also an observation of a retail customer shift away from the largest banks with non-resident capital in Russia. With enhanced service quality and new sales offices, Gazprombank aims to attract higher-quality customers.
Analyst commentary underscores that the new branch format, paired with a robust advertising strategy, can help attract new customers and grow business volumes. Previously, it was stated that the bank aims to substantially expand its retail client base over the coming years.
Overall, Gazprombank is pursuing a strategy that blends cutting-edge technology with personal communication, maintaining trust as a cornerstone of customer relationships.