J’son & Partners Consulting presents brief results of the research: Banking Software Market in Russian Federation.


At the moment growth rates are decreasing on the Russian retail lending market while past-due debt’s volumes are increasing. In the current macroeconomic situation banks face the task to optimize business processes, including the implementation of software solutions to manage credit portfolio, to estimate the quality of borrowers, to work with past-due debts and also automated banking systems – software products, which key function is banking activity automatization.


Retail Lending Market


Russian lending market is showing positive towards growth tendency for the last three years: as of January 1st, 2015 – market volume in Russia was 11.3 trl RUB with 15% growth vs the previous period.



According to Expert PA estimation, the portfolio of unsecured consumer loans was 7.3 trl RUB in 2014. The decreasing trend is being viewed in the growth rates of credit portfolio, according to Expert PA forecast, the portfolio of unsecured loans will increase for 15%.



Despite the market uptrend till 2015, the number of provided loans decreased in January. According to the data of United Credit Bureau, banks provided three times less loans in quantitative equivalent during January 2015 in comparison with January 2014: car loans decreased for 81%, credit cards – 83%, cash credits – 53%, mortgage loans – for 30%.  


According to Central Bank’s data, in 2014 past-due debt for retail loans was 700 bln RUB that is 51.6% more than the previous year. By various experts’ opinion, the past-due debt can increase till 8-10% in case the lending will grow for 5-10% and financial status of borrowers will drop by the end of 2015.



According to United Credit Bureau cash loans do 50% of the retail lending portfolio: the average amount of the loan increased for 13% - 185 thousand RUB. At the same time average debt per loan increased for 28% and it is over 74 thousand RUB now.


By estimation of Central Bank representative, the volume of provided loans in February 2015 decreased for 1.5% and the following decrease is possible. Meanwhile, it is expected that due to pessimistic forecasts the participants of banking sector are focusing on management of current portfolios and work with current clients.


The Market of Banking Software Solutions


J’son & Partners Consulting’s experts specify the following software solutions on the market of banking software:


  • Automatedbankingsystems(ABS);
  • Scoring Systems;
  • Systems to work with past-due debt.


Russian Banking Software Market’s Map is presented below.



According to the available data, the leading suppliers of automated banking systems by number of new projects on the Russian banking software market are:


  • http://www.inversion.ru/;
  • http://www.diasoft.ru/;
  • http://www.cft.ru/;
  • R-Style Softlab;
  • http://www.bis.ru/;
  • http://www.programbank.ru/.


These companies are market “pioneers” and have started their activity in the beginning of 1990s.


J’son & Partners Consulting’s experts also specify the following companies - http://www.prognoz.ru/; http://www.neoflex.ru/; http://www.athena.ru/.



There is a wide range of banking software solutions on the market, including:


  • Diasoft 5NT, Diasoft FA, Flextera Financial Architecture;
  • Centralized Automated Banking System – Bank 21 Vek;
  • RS-Retail, RS-Loans;
  • QBIS, Biskquit, IOS;
  • Centavr Omega, Gefest, Nostradamus;
  • others.


According to the available data, the market of banking software is showing stable growth at the level of 5-10%. The average amount per project is also growing.


J’son & Partners Consulting’s specialists also marked that the number of new projects is slightly decreasing starting 2012.



Besides the drop of number of new projects on Russian market, the decrease number of registered banks is also can be observed: 3,5% fall in 2013. This tendency will keep going in 2014 and as of July 2014 the number accounted 884 banks.



In terms, when the number of participants in banking sector is decreasing and due to unstable economic situation, market experts forecast that the goal of vendors and developers of banking software will focus on maximization of revenue from complimentary services: monitoring, technical support, modernization.




J’son & Partners Consulting’s experts forecast that growth rates of automated banking systems market will slow down in 2015, as its implementation and development require major financial investments, which is difficult to make in terms of unstable situation in financial sector.


Nevertheless, according to J’son & Partners Consulting’s estimations, systems which allow to increase the efficiency of banking activity with low costs on implementation will still be popular – scoring systems and systems for work with past-due debt. Increasing share of past-due debts and necessity to increase banks’ incomes based on credit portfolio optimization will facilitate the popularity of such systems.


Detailed Results of the Research are Presented in the Full Version of the Report: Banking Software Market in Russian Federation


1. Introduction

2. Methodology

3. Retail Lending Market in Russia: Volume, Dynamic, Current Market State

4. Banking Software Market in Russia: Volume and Current Market State

5. Business cases –Implementation of Banking Software

  1. Analysis of Market Players – Automated Banking Systems

6.1. Brief Analysis of Market Players

6.2. Profiles of Largest Players

6.3. Profiles of Software Products

7. Analysis of Market Players – Scoring Systems

7.1. Brief Analysis of Market Players

7.2. Profiles of Largest Players

7.3. Profiles of Software Products

8. Analysis of Market Players – Software for Work with Pas-Due Debt

8.1. Brief Analysis of Market Players

8.2. Profiles of Largest Players

8.3. Profiles of Software Products

9. Trends and Tendencies

10. List of Companies, Mentioned in the Report


This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.