Sber presents Development Strategy 2023

Nov 30, 2020

The first day of Sber’s two-day Investor Day is over. It saw top managers presenting the company’s strategy for the next three years. According to Herman Gref, CEO and Chairman of Sberbank’s Executive Board, the key goals of the Strategy 2020 have been achieved, which allows the company to move on to the next development stage.

Over the three years of the strategy, Sber has reached its primary goal to become a tech company. Thanks to investment in technology and the ecosystem, Sber has made its services convenient and advanced across the world: 50% of all customers use digital channels only, and one-third of customers use non-cash channels. Sber has maintained its leading positions across all the main segments of Russia’s financial market. Being the core of its ecosystem, Sber’s highly-profitable financial business is a solid base allowing the company to invest in its tech development and new non-financial services.

Over the years, Sber has expanded its footprint outside the financial market and entered practically every digital industry, and now the Group’s companies can cover all the final needs of customers in the digital world. Doing that, Sber goes beyond simply digitizing products or services, but rather transforms entire markets and creates new ones.

Sber has implemented its technology strategy by launching a cutting-edge cloud platform called Platform V, which is R&D from start to finish, and uses in-house expertise to create unique tech products for the market (SberCloud, a family of voice assistants, and devices). AI and IT solutions have enabled Sber to halve transaction costs, with AI being used in all business processes as something habitual.

Sber has completed one of the world’s largest agile transformations, changing its approach to product development and essentially creating a new production process.

Herman Gref, CEO, Chairman of the Executive Board, Sberbank:

“Our financial performance speaks for itself. We delivered strong results in 2018 and 2019, but the pandemic has taken its toll. Thanks to an advanced risk management system and our team’s quick responses, we have been able to ensure a quick financial performance recovery. We have increased our capital adequacy ratio significantly, and this allowed us to fulfill our promises regarding dividends, which reached the 50% milestone, and to pay more than RUB1 tn in dividends over three years.”

Key Goal of Strategy 2023

Sber is a trusted assistant and navigator in a changing world. It benefits the stable evolution of people, businesses, and the state by building a fully-integrated ecosystem that works according to the formula 2+2=5.

  • For people, Sber is an assistant and navigator helping optimize funds, time, and energy.
  • For businesses, Sber is a partner to maintain businesses and help them grow, by boosting revenues, cutting costs, protecting against risks, and aiding their digitization.
  • For the country, Sber backs the Government to spur economic growth by contributing to people’s wealth, developing SMEs, advancing digitization, transforming industries, backing education and science, benefiting the environment, and ESG development.

Sber unites the needs of people, businesses, and the country through technology and its solutions, integrating all its services into a single ecosystem. It organizes general processes (financial, operational, technological, risk management-related, etc.), team management, and culture for ultimate synergies.

Herman Gref, CEO, Chairman of the Executive Board, Sberbank:

“Strategy 2023 is a logical continuation of the strategy that we approved three years ago. In the new strategy, we will give special attention to building a seamless customer experience and creating a unique customer proposition. We don’t see our businesses as separate assets, but rather think of them as parts of an integrated business model, the Ecosystem. Our main goal is to become a trusted assistant and navigator in a changing world: for people, businesses, and the state.”

Strategy 2023 Ambitions

  • Become a Top 3‒5 e-commerce player as of 2023 year-end with the GMV of about RUB500 bn and lay the groundwork for the subsequent leadership in the industry
  • Profitability above 17%
  • Common Equity Tier 1 above 12.5%
  • Dividend payouts reaching 50% of net profit
  • Discipline when managing spending and value at risk
  • Business growth across non-financial markets at a 100% rate annually
  • Upon strategy completion, Sber’s non-financial businesses will account for at least 5% of the Group’s revenue
  • Development of Platform V, the new digital platform, stays a key technological investment at the heart of the strategy with all of Sber’s financial and non-financial business development plans based on it
  • Create a seamless customer journey that would be customized as much as possible through uniting elements and offerings
  • Develop wealth products helping customers pursue their long-term life goals through investment products by forming savings habits.

Heads of Sber’s business units spoke about top priority development regarding business verticals and horizontals, talent potential, finance, technology, and Sber’s integrated ecosystem, which offers financial and non-financial services to over 100 mn customers. A Q&A session was the final event on the agenda.

Additional sessions with the heads of Sber’s business lines will be held on December 1st during Investor Day’s second day. An online stream will be available on the website starting at 2:00 pm Moscow time.