FBK’s Head of Internal Audit and Risk Management Services Department Roman Kenigsberg on Growing Number of Bank Offices

According to Kommersant, based on data from the Central Bank, in November the number of offices of Russian banks became a record high, exceeding the mark of 24.2 thousand units. During the month, their number increased by more than 300 units. This data applies only to additional offices, excluding branches, representative offices, and mobile cash registers.

The trend towards an increase in the number of offices has continued since last year. Prior to that, starting in 2014, the number of bank offices gradually decreased. Currently, growth is taking place in all federal districts, with the largest number opening in the Siberian, Volga and Far Eastern regions.

"The growth in the number of bank offices is the reverse trend of digitalization. For example, before the problems with online banking applications began in 2022, credit institutions tried to transfer all processes and services to remote service as much as possible. This process started about ten years ago. Now the trend is reversed. Banks are no longer betting on mobile apps because of the difficulties in using them. Against the background of recurring problems with access to online services, the physical infrastructure is an important element for ensuring the smooth operation of banks.

In addition, the previous trend towards reducing the number of offices was largely the result of reorganizations, license revocations, and mergers and acquisitions in the banking sector. Now these processes have been suspended, which also affects the current situation with the number of structural divisions," commented Roman Konigsberg, Head of the Internal Audit and Risk Management Department at FBK Audit and Consulting Group.