VTB is heading to the local mail service.
March 2025 marked the kickoff of a major banking fusion. VTB Bank—Russia's second-largest lender—is teaming up with Post Bank, thanks to a deal that's set to broaden its reach to an astounding 13,000 new settlements, covering 24,000 Post Office Russia outlets. The announcement came from Georgy Gorshkov, Deputy President and Chairman of VTB Bank.
As of April 1, 2025, phase two of the integration began. By July 2025, VTB will start selling its products in over 2,100 service points located within post offices. Moreover, the bank started updating more than 500 Post Bank ATMs in April, with the goal of having the project completed by the end of the second quarter of 2025.
According to Georgy Gorshkov, this integration is about making our sales network as diverse as possible.
-- Here's some inside scoop --
You might have heard whispers about VTB's merger with Post Bank, a strategic union aimed at boosting retail banking services by tapping into Russian Post's extensive logistical network. This marriage of minds is expected to bring about significant changes:
Retail Banking Boom
VTB snatched Russian Post's stake in Post Bank after getting the green light from the Central Bank and Federal Antimonopoly Service[1][4]. This union merges VTB's retail operations with Post Bank's 1,350-branch network (thanks to the 2018 VTB24 merger)[1] to form one of Russia's largest banking infrastructures. Russian Post's 40,000+ postal offices will help penetrate rural and underserved markets.
Service Revolution
- Big Data Crunch: VTB has joined forces with Rostelecom to create a big data analytics joint venture. This venture promises to enhance personalized financial products and risk management[3].
- Sanctions Resilience: Sanctions have cost VTB a whopping $7.7B in 2022[5], setting the stage for innovation. The bank is embracing domestic consolidation and diversified services to deal with the challenges.
Operation Smooth Sailing
The merger envisions streamlined operations, minimize redundancy, and optimize capital allocation. Post Bank's retail focus complements VTB's broader corporate and investment banking expertise, creating a full-spectrum financial beast. The integration process faces regulatory impediments, like the updated sanctions guidance for Russian bank mergers[2], but VTB is staying keen on compliance during its expansion spree[2][5].
This merger could give VTB a competitive edge while helping it navigate geopolitical turbulence through technology and operational advancements.
- The merger between VTB Bank and Post Bank, announced by Georgy Gorshkov, Deputy President and Chairman of VTB Bank, is expected to add finance business to VTB's operations by 2025.
- The strategic union aims to boost retail banking services by tapping into Russian Post's extensive logistical network, with VTB selling its products in over 2,100 service points located within post offices.
- Georgy Gorshkov stated that this integration move is about making their sales network as diverse as possible.
- The merger, scheduled for April 1, 2025, includes the creation of a big data analytics joint venture with Rostelecom to enhance personalized financial products and risk management.
