What is PrivatBank? PrivatBank Review

PrivatBank Commercial Bank Open Joint Stock Company (ПриватБанк) is the largest bank in mainland Ukraine in terms of the number of customers, assets, and outstanding loans. Unlike most large Ukrainian banks, PriVATBank is headquartered in Dnepropetrovsk, not in Kiev.

The bank employs more than 30,000 people. According to a banking market study conducted by GfK, one third (33.2%) of the surveyed bank customers use PrivatBank services, while one quarter (24.9%) of the respondents enjoy the wide range of services and consider PrivatBank their main bank. As of February 1, 2011, 2.4 million retirees use PrivatBank services, 3.4 million people receive their salary through PrivatBank cards, and 1 million students receive scholarships through PrivatBank cards. The bank's infrastructure in Ukraine includes 6,975 ATMs[3], 2,228 self-service terminals[4], 35,486 sales terminals, and 3,202 branches and sub-branches[5]. On average, PrivatBank pays 1.5 million people per day.

PrivatBank provides various services to customers. The international network of PrivatBank includes partner banks MoscowPrivatBank (Russia), AS PrivatBank (Latvia), AS PrivatBank (Portugal) and TaoPrivatBank (Georgia). In addition, there are branches or representative offices in 12 countries including Italy, Cyprus, and the United Kingdom.

Development History

PrivatBank is one of the first private commercial banks established in Ukraine. In 1992, PrivatBank was established by a resolution of the founders' meeting.

Privatbank started with an office and a few computers. The first chairman was Serhiy Tihipko. It was this Dnipropetrovsk bank that started the use of bank cards and ATMs in Ukraine. In addition, PrivatBank was the first Ukrainian financial institution to be awarded an international rating.

In 1996, it became a full member of the VISА international payment system and began issuing bank cards in large quantities.

In 1997, Privatbank was rated by the Тhomson BankWATCh international rating agency and became a full member of the [EMV|Eugorov] payment system.

In 1998, it was rated by the international rating agency Fitch IBCA. In November 1998, after a tender, it was commissioned to pay the Swiss Nazi Victims Compensation Fund in Ukraine.

In 1999, PrivatBank opened a branch for international financial operations in Cyprus, and the branch in Nicosia became the first Ukrainian bank branch abroad.

In 2000, it was entrusted with the payment of compensation to Ukrainian citizens who were persecuted by the Nazis during World War II. On July 6, 2000, PrivatBank was reorganized from a limited liability company into a closed joint stock company. Thus, on September 4, 2000, the Articles of Association of PrivatBank Commercial Bank Closed Joint Stock Company were registered.

The launch of the Privat24[7] project in 2001 became a major event in the Ukrainian banking system. Privat24 allowed the general public to manage their accounts, transfer money, and perform other operations online.

In February 2002, PrivatBank issued the one millionth bank card. In April 2002, PrivatBank representatives were elected to the Board of Directors of VISA СЕМЕА.

In 2003, PrivatBank was named the best bank in terms of customer service by Western Union. That year, it received the "STP Excellence Award" from Deutsche Bank. PrivatBank was the first Ukrainian bank to issue Eurobonds in the amount of USD 100 million. In addition, PrivatBank received the Standard&Poor's "В-" rating for the first time in Ukraine. PrivatBank's Eurobonds were awarded a long-term rating of «B –» by the international rating agency Fitch.

On April 30, 2009, the General Meeting of Shareholders decided to amend the Bank's Articles of Association in accordance with the Ukrainian Law on Joint Stock Companies, change the form of the joint stock company from a closed to an open one, and change the name of the bank to PrivatBank Commercial Bank Open Joint Stock Company. These changes came into effect on July 21, 2009.

Innovative technologies used

The use of innovative technologies in the daily work of the bank is one of the means to strengthen its leading position in the Ukrainian financial market. To this end, PrivatBank employees use both traditional technologies such as Skype, Google Docs, Google Wave, and unique designs such as the PrivatDok electronic document management system.

PrivatBank provided its customers with an easy way to use online banking for the first time in Ukraine. As of January 20, 2011, [1][Permanently Dead Link] there were 773,890 registered users of the online banking service. As of February 1, 2011, in addition to Privat24, the most widely used technologies include MoBILebanking (which allows account management via mobile phone), LiqPAY (an online payment system designed by PrivatBank experts based on Visa Money Transfer technology and network advantages), and 3-D Securе (a technology launched in 2010 for fraud prevention). In addition, all bank branches use a unique technology called "Electronic Change". The "Electronic Change" technology allows customers to receive and receive change in electronic money.

Social Projects

Privatbank positions itself as a socially responsible enterprise. Various competitions are held for the elderly and children. In 2008, the "JuniorBank" (JuniorBank[8]) was established, where children and teenagers are taught banking. In 2010, the "Joyful Creation" project was implemented, and exhibitions of creative works of retirees were organized in bank branches. Through the "Skype: Victory Festival" project, war veterans from different cities and countries were able to find friends and socialize with them. The project was nominated for the European Excellence Awards 2010.

In 2010, the "It's a Simple Thing to Help" project was launched to collect donations for childcare homes.

In addition, Privatbank provides ATMs to collect donations without service charge. For example, in January 2011, Privatbank organized a collection of donations within 24 hours without service charge to help the victims of the explosion at the "Domodedovo" airport (Moscow, Russia) (more than 105 thousand hryvnias were collected); in October 2010, 101 thousand hryvnias were collected to help the families of the victims of the road accident in Malganets (Dnipropetrovsk Oblast, Ukraine); in March 2010, 11 thousand hryvnias were collected to help the victims of the explosion in the Moscow metro; in June-July 2008, 530 thousand hryvnias were collected to help the victims of the floods in western Ukraine.

In 2011 Privatbank plans to launch the social project “PrivatBank against drugs!”

honor

In 1992-2002, PrivatBank was rated as the best bank in the Ukrainian market by the authoritative magazine “Euromoney” (“Awards for excellence” rating).

In 1999, PrivatBank was named the best bank in emerging markets by "Global Finance" magazine.

1999, 2003-2004, “Best Bank in Ukraine” World`s Bank Best Awards.

In 2000, 2002 and 2010, PrivatBank was rated “the best bank in Ukraine” by the prestigious British magazine “The BAnker” (Bank of the year rating).

From 2001 to 2009, PrivatBank was selected as the best bank in the World's Best Foreign Exchange rating by "Global" magazine for eight consecutive years.

In 2003, PrivatBank was named the best bank in terms of customer service by Western Union.

In 2003, PrivatBank was the best bank in Ukraine, "World's Best Bank 2003" (rating by "Global Finance" magazine).

In 2004, PrivatBank was selected as the best bank of 2004 (Global Finance magazine rating).

2005, Best Bank in Ukraine, Best Emerging Marker Banks rating.

In 2007, MoneyGram Payment Systems, Inc. (USA) awarded PrivatBank the “Certificate Excellence Awarded to PrivatBank for the fastest network development”.

In 2009, PrivatBank was selected as the best bank in the EMEA Finance magazine's «Best local bank 2009» rating.

In 2010, PrivatBank's «Electronic Change» technology was recognized as the best technology by The Banker in the category «Best Innovation in Cash and Treasury Technology» in the «Innovation in Banking Technology Awards».

In 2010, the international project “The World's Most Reputable Companies” confirmed Privatbank’s absolute leadership in the Ukrainian banking system in terms of customer credit.