Ravalovsky claims Okko's "massive growth in subscribers" since it was incorporated into Sber.

“Nobody will buy a product because Sber says it doesn't work that way in the Russian market,” says Ravalovsky. “You have to gain confidence in every product category.

Rather than "gaining" confidence, as Sber's chief technology officer argues, the bank appears to be simply buying up the confidence of Russian consumers through its acquisitions.

"The ecosystem works because you can deliver packages," Ravalovsky explains. Essentially, Spear's approach is to sell banking services as part of a larger package in the form of a lifestyle.

Speer International Play for "Big Tech"

Sber claims to serve 100 million customers in Russia, which has 145 million people - meaning that the bank owns 71.4% of the domestic banking market.

But about eight years ago, Sber started making the decision to expand internationally, having grown a healthy monopoly in its home market.

It has made a series of bank franchise acquisitions in nearly 25 countries. In 2012, it bought DenizBank in Turkey, Volksbank International in Austria, and BNP Paribas' Cetelem Consumer Credit Unit in France.

Other countries included the Czech Republic, Slovakia, and Hungary. But the bank soon realized that profits were limited internationally, and that growth had reached a glass ceiling.

"The movement of funds is limited and difficult at the international level," says Ravalovsky. “Don't get me wrong, we built a decent international franchise, and it wasn't losing money.

"But it is not very interesting to work for a company without great growth opportunities."

He points to European banking as an example. "Where is the money?" Asks Ravalovsky. “It's a tough business making money lately.

The rise of competitive banks has disrupted the current fee-heavy model. Startups like Revolut and TransferWise have lobbied the likes of Santander and HSBC to roll out free cross-border money transfer services.

Author: SBERCOIN.live