Steadily growing investments in fintech technologies on a global scale confirm a strong potential for this industry and further expansion prospects in coming years. In Russia, fintech transaction value amounted to over 45 billion U.S. dollars during 2019, with an estimated users volume expected to exceed 76 million by 2024.
Online banking and digital paymentsDigital payments and personal finances are the two major segments of the fintech industry in Russia, constituting roughly 90 and 9 percent of the market share, respectively. In 2019, the total value of electronic payments was over 613 trillion Russian rubles, while the value of bank card payments amounted to about 27 trillion Russian rubles. Bank cards were the second most employed mode of payment after cash in the country as of 2019, among which MasterCard and Visa were the dominant brands.
In recent years, Sberbank was the leading bank in Russia by investment value in information technologies. Accordingly, the most popular mobile banking app in the country also belonged to the aforementioned bank. In 2019, Russian users’ service of choice for digital payments was reported to be Sberbank Online.
NeobanksThe rise of neobanks in Russia's contemporary financial industry was closely related to the development of fintech. Hence, neobanks are fully digitalized financial institutions that lack physical branch networks and operate with products related to financial technologies.
In Russia, Tinkoff Bank was the largest institution of this kind, with an estimated value of nearly 250 billion Russian rubles in 2018. Nonetheless, Yandex.Money reported significantly better profitability ratios than the former over the same period. The Russian payments system provider Qiwi Group, whose largest business segment was money remittance, accounted for over 680 million Russian rubles in net profits in 2019.