Page 70 - RusRPTJan22

Tinkoff’s gross loan portfolio is split between credit cards, cash loans, point-of-sale (POS) loans, car loans and secured loans, with respective shares of 51%, 19%, 8%, 11% and 11%. The share of secured loans is likely to increase in the following years.
There are 4.3mn active users of Tinkoff credit cards. The gross portfolio of the product line reached RUB 315bn in 9M21 vs. RUB 268bn in YE20. The average issued card limit is RUB 67,000, and the average gross yield amounts to 33%. More than 50% of new credit cards are cross-sold to the existing Tinkoff customer base.
TCS Group’s cash loans portfolio is likely to double in FY21 from RUB 68bn in FY20. Although its active customer base is smaller at 500,000 users, the segment has shown a rate of cross-selling of more than 85%, which is even higher than for credit cards. Seventy-five percent of cash loan customers are acquired via the super app.
There are 1.7mn active customers and 90,000 active points of sale in the POS loans segment, which represents the B2B2C business model. Tinkoff launched its own broker platform for small, medium and online retailers called Tinkoff Credit Broker, through which more than 45% of POS loans are issued.
Car loans is another recently launched segment of consumer finance, with more than 75% of loans issued to existing Tinkoff clients. The gross portfolio has more than doubled since YE20, reaching RUB 68bn in 9M21. It’s worth mentioning that 59% of loans are sold through the direct channel, while dealerships remain the most common tool for other market players. Ninety percent of Tinkoff’s car loans are used to finance purchases of used cars.
Although the secured loans segment is the youngest in Tinkoff’s consumer finance product mix, it is seen as the most perspective by management. Similar to cash loans, more than 80% of secured ones are cross-sold to the existing customer base.
Another developing product line is mortgages, as the Russian market remains heavily underpenetrated. The Tinkoff team currently perceives the product to be a strategic one and aims to become a significant player in this segment in the next three to five years, targeting $4.8bn in mortgage revenue by FY23. Tinkoff aims to primarily target mass-market clients with its mortgage offerings, and management thinks that Tinkoff’s faster and more user-friendly processes could allow it to charge up to 50bps more than what major mortgage players do.
70 RUSSIA Country Report January 2022 www.intellinews.com