TBC bank and challenges caused by COVID-19
By Natalia Kochiashvili
Friday, June 5
TBC bank, which has been recently named as EBRD's best partner in financing trade in Georgia, has successfully handled challenges caused by COVID-19 pandemic. TBC team members explained the processes of the last 3 months in an online forum held for media representatives on 4th of June.
According to Vakhtang Butskhrikidze, the director general of TBC bank reported, that TBC has continued the process of strengthening digital services which has been started a long time ago, however given the last 3 months penetration of mobile bank raised to 44% whilst the execution of operations through distant services amounted 94%. Bank started issuing digital loans and created the digital card.
What TBC also did besides rescheduling business loans for business by 3 months was issuing free business cards for two years, canceling internet banking service fee and commission on communal fees. Provided were cards that enable distributors to receive payment by placing cards on a terminal, giving opportunity for avoiding cash and the new online platform tbcpayments.ge.
By supporting TBC and VISA, 200 new online georgian shops were created. TBC suggested the service for preparing online shop, photographing, integrating payment system and delivery service as well as online deferred payment.
Ensuring health of employees was the number one priority since the first confirmed case in Georgia. Soon the working from home practice was introduced and now 95% back office employees work remotely. Intensified health security measures were taken and promoted in branches.
The most important step that has received very positive feedback was TBC’s decision to keep all employees and not fire anyone due to the crisis caused by the pandemic.
It’s interesting that 78% of individual bodies, 59% of micro, small and medium sized businesses and 32% of corporate businesses benefited from the loan relief program.
TBC assisted business: corporate sector financed projects worth GEL 560 million. As for digital transformation, 450 micro small and medium business companies were supported. $154 million attracted from International finance organizations and TBC plans to attract $450 million by the end of the year.
TBC’s mission, as stated by representatives is to simplify people’s lives, to have 10million customers by 2022, 5.4 million customers including ecosystems. The plan also includes opening the first TBC branch and Space in Uzbekistan.
TBC positions itself as technological company and plans to improve its products and services in this direction
As for economic prognosis, TBC’s main economist, Otar Nadaraia, says that compared to 2008, in 2020 outfling effect is more, however it’s expected that the restoring process will happen sooner and the total loss will be relatively less. The dynamics of fast indicators along with the opening economy indicates the restoration of activity.
According to Nadaraia, the sharp depreciation of the Lari exchange rate is less likely. According to the basic scenario, it’s expected that the Lari exchange rate will remain at its current state. Besides inflows, the Lari exchange rate against the Dollar depends on the Dollar's rate against Euro, Lira and Ruble. Given that dollar is very solid against other valutes, it’s less likely that it will further harden in international markets
Unlike the 2008 year crisis, there are no ‘bubble’ signs on the real estate market as of today, which is guaranteed that real estate prices will not lessen much, bringing fast recovery.
