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Investor Presentaiton

corporate social responsibility > 168 SBERBANK 170 YEARS. BY YOUR SIDE ANNUAL REPORT IMPROVING PRODUCT AND SERVICE QUALITY 2011 We ensure the quality of our loan products by promptly reviewing loan applications, respecting our customers' time and recognising that processing time is an important component in overall service quality that contributes to the Bank's competitiveness. In order to reduce turn- around time for retail loans and improve the quality of loan products, the Bank introduced the Loan Factory, a state-of-the-art technology to process loan applications. This helped us centralise, streamline and standardise application assessment processes, thus achieving a significant reduction in turnaround time for all retail loans. As a result, the average turnaround time decreased from 1.5 days in 2010 to 1.2 days in 2011. MAIN TOPICS OF INTEREST TO BORROWERS AND THE BANK'S RESPONSE Main topics of interest to borrowers Partial and full early repayment procedures Loans for young people Special lending terms for pensioners Using Sberbank deposits as proof of repayment ability Residence registration requirements for borrowers Bank's response Removed limitations on early repayment amounts and abolished the moratorium period during which early repayment was not permitted Introduced special loan offerings for customers aged between 18 and 21 Introduced lower interest rates for pensioners Introduced, as part of the Bank's mortgage programmes, a special procedure through which borrowers with current accounts at the Bank can prove their ability to repay loans Residence registration requirements for borrowers relaxed when applying for loans in the Central Federal District In 2012, we plan to continue simplifying early repayment procedures and replicating our pilot project to loosen residence registration re- quirements for borrowers. We are also exploring the possibility of submitting loan applications through remote service channels, since customers also raised this topic in their dialogue with the Bank. In 2011, we conducted a dedicated campaign to improve financial literacy among the young, making use of special communication channels best suited to the target audience. A special promotion called Sberbank Respect for Every Dream was carried out in the form of a game at 40 universities across the country. The overall number of contacts within the promotion reached 3.857 million. In 2011, we conducted a dedicated campaign to improve financial literacy among the young, making use of special communication channels best suited to the target audience A strategic area of Sberbank's efforts to improve financial literacy is building effective feedback channels and maintaining customer dialogue. Reaching customers through the Internet and especially through social media is essential to achieving these objectives. Sber- bank's Bank of Friends groups on various social networks, as well as a range of training applications and game-based projects, including the Financial Navigator project, help customers receive timely profes- sional advice on financial matters from the Bank's experts. At the end of 2011, the overall number of subscribers to Bank of Friends groups exceeded 850,000, making Sberbank's community the largest banking community on the Russian-language web. In 2012, improving the financial literacy of Russian citizens will remain a priority for Sberbank. Activities will include federal media campaigns, special web-based projects using social networks and other specialised activities targeting various audiences. 169 Λ corporate social responsibility FINANCIAL LITERACY In 2011, Sberbank paid special attention to an important aspect of its social mission-improving financial literacy among the population. Throughout the year, the Bank implemented a system of measures including special projects and media campaigns aimed at improv- ing financial literacy. Communications focused on educating cur- rent and potential customers about the features of modern banking products, their benefits and use. The main communication channels included the federal print media, popular web resources and radio programmes. This helped us reach the broadest audience possible to deliver the message about banking products. A total of ten infor- mation campaigns were implemented with each campaign reaching between 1 and 7.5 million people. COUNTERACTING FRAUD AND ILLEGAL BUSINESS PRACTICES We strive not only to provide high-quality services but also to counter- act fraud and illegal business practices that are potentially harmful to customer interests and the Bank's reputation. In 2011, the Bank prevented fraudulent acts that would have led to the theft of a total of some RUB 1.8 billion from customer accounts. In addition, in 2011 several infringements by the Bank's employees were identified with appropriate actions taken against the infringers. 170 YEARS. IT'S JUST THE BEGINNING WWW.SBERBANK.RU
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