The specialized issue of NBJ dedicated to the IT-solutions is published

The September issue of the National Banking Journal dedicated to the informational technologies and system integration in banking is published. The SAGA Technologies business development director Oksana Kalashnikova granted an interview which was published in the specialized topical section on page 67. In this article the SAGA Technologies’ strategy in the banking market is described, the own manufacturing of the banking payment terminals, ATMs and other equipment for banks

«Client-friendliness is the foundation of our business strategy»

The market of the banking payment terminals is growing fast in recent times. The banks realized that the acceptance of payments in favour of third parties (the so-called instant payments) is a banking transaction according to all criteria, and it is regaining the leading positions in the cash-in market from non-bank terminal networks. According to Oksana Kalashnikova, the business development director of SAGA Technologies CJSC, when choosing suppliers, the banks prefer Russian ones, because they can make the product and its service support exclusive while maintaining favorable quality-price ratio.

NBJ: Oksana Aleksandrovna, what does your company focus on?

O. Kalashnikova: SAGA Technologies is a Russian vendor company producing and supplying own-branded software and hardware complexes including payment and informational terminals, cash-in/cash-out ATMs and software. The SAGA Technologies CJSC is the company with a full manufacturing cycle. We have our own assembling rooms, engineering office, design and development works and software departments in Moscow and the metalworking room for manufacturing of casings for terminals and ATMs in Moscow region.

Our team has an experience in the payment systems market since 2001, this means, from its beginning in Russia. In the middle of 2005 the payment systems market began to grow fast. We began our new business under the SAGA Technologies brand with the participation of the Russian professional investors, and we have been following the chosen strategic profile.

NBJ: How did you manage to overcome the financial crisis of 2008?

O. Kalashnikova: You would hardly believe, but we gained significant profit from the crisis and enhanced our positions in the market. At first, this was not easy and our amount of sales decreased in the beginning of 2009. But as a result we managed to increase our share in the market. The point is in strategy adopted at origin by our shareholders and the company’s management, which comprises transparency and publicness, because in the long-term outlook we plan to make an IPO. And concerning the desired customer base, we have been always focused on banks, considering the payments in favour of third parties as a banking transaction.

It is significant that we saw in surprise in 2005-2008 the situation when the banks ignored the growth of the terminals market which reached the annual turnover of 15-20 billion dollars before crisis. But nonetheless the crisis shook the banks up and they turned their attention to the segment which had been forgotten up to these times. Because of the client-friendliness in 2009 we managed to win a number of tenders in the recovering market of payment terminals. Also we were supported by federal and municipal orders received by the SAGA Technologies CJSC in the end of 2008 – beginning of 2009.

NBJ: On your website much prominence is given to terminals. Does it mean that they prevail in sales?

O. Kalashnikova: Yes and no. On the one hand, the payment terminals today are our most desired product and the trend of increase of demand from banks becomes stable. Terminals as a cash-in device is used for payments in favour of the third parties, which now became classic (mobile operators, housing and communal services – more than 3000 (!) service providers), and for paying off loans and crediting accounts. Therewith, the confidence to the banking payment terminals is significantly higher than to the terminals with «unknown» owner (for example, self-employed individual). We know the cases when the clients pay 300-500 thousand rubles to the banking terminal at a time! Beyond that, since spring 2010 the share of card payments via terminals is growing fast. It doubles every month. The terminals more and more often are equipped with cash acceptor receiving money in a bundle of 20 or more notes. Therewith the price of such device is significantly lower than the price of a cash-in device of foreign make.

On the other hand, while answering to your question, we have to highlight a number of issues. First of all, now we are at the step of rebranding, that’s why in the end of the year we will have a new logo and new website. Secondly, our sales pattern changes in geography and product range. We find clients in the Eastern Europe, in the Middle East and Turkey, – wherever the share of cash in turnover is high.

But our main achievement is the creation of our own ATM with cash-out and cash-in functions. This affordable and portable device is already demanded. The bank which purchase the classic cash-out ATM gains an opportunity to upgrade it to the full-service cash-in/cash-out ATM.

NBJ: How do you see the prospects of banking terminals and ATMs?

O. Kalashnikova: We see and feel the potential of it. Every month we receive 15-20 new requests for calculation of terminal costs from different banks. This year despite the enervating summer, the growth of the number of new clients is three-five banks every month. The number of banks which received the software and hardware complex of our make at least once, is about 50. There are several leading banks from the top 20 of the rating among them.

The main point is that we see the strategic trend of banking equipment market development. In the nearest future the common ATMs will be replaced by affordable and portable cash-out and cash-in devices, comparable with the actual terminals in price. This will enable the banks to boost the client coverage area. These devices will become such usual as bus stations or traffic lights.

The progress cannot be stopped, and we suggest to be in tune with the times using the new information technologies.

Source: «National Banking Journal» (Ivan Petrenko)

Information provided by the SAGA Technologies company:

The National banking journal is the leading journal of the banking sphere in Russia. It highlights the main issues of economy and finance. The founder of the NBJ is the Russian Bankers Association (ARB). NBJ is the review of the actual economic and business trends, expert estimates, statistics, analysis and forecast, interviews with famous and important people, reports about the leaders and the best teams in banking sphere. The journal published the information about bankers «out of duty», about their hobbies, hopes, ups and downs of the famous banks. Three topical sections – «Banks and world», «Banks and business», «Banks and society», – highlight all the sides of the banking community’s life and activity in Russia and abroad. The issue of the magazine is 30000 copies, distributed by subscription in the professional banking community. Website address – www.nbj.ru.