Sberbank FX Trading Platform Qorus Banking Innovation Awards 2021

For our mass clients we transformed complex financial products into simple solutions in internet-banking SberBusiness. Since 2018 our mass customers have been enjoying simple widget for currency exchange and individual pricing with all costs included. Despite prices could be better than public benchmarks, our customers were not quite happy with that since they could not understand how the price is formed and were not sure about the future. We observed increased demand for transparency in 2019 and developed an algorithm that provides execution at the Russian Central Bank’s rate (CBR) + fixed cost. At the same time, we developed currency exchange with payment deferment – that provides an opportunity to fix the FX rate now and settle the trade in future, eg in a week. This is an outstanding innovation as, in fact, we are one of the first in Russia to grant to mass customers a quick access to FX derivatives including unique electronic on-boarding for Russian ISDA, simplified digital process for getting trading limit and genuine widget for trading. We added several tailored solutions for corporate treasuries in single-dealer platform SberCIB Terminal. SberCIB Terminal currently supports FX conversion (all tenors), FX swaps and forwards, deposits and precious metal. In 2020 we also added non-deliverable forwards (NDF), to address customers with RUB payments linked to any currency benchmark. At the same time we we were the first in Russia to provide our corporate customers with advanced execution algorithms – Iceberg, TWAP, VWAP. The customer has to input FX trade parameters and the algorithm works automatically. We set up the transaction-cost analysis report to prove the order is executed at the best price. Additionally, we increased the set of orders that SberCIB Terminal customers can use to trade FX – we added limit order at the Central Bank FX rate, order that waits for the price until a certain date or until it’s cancelled and orders for deliverable and non-deliverable forwards. In 2019-2020 we went globally and were the first Russian bank to provide access to its algorithms to international banks via Bloomberg. We started to provide our trading expertise for outsourcing as Trading-as-a-Service: designing tailored FX pricing, integrating our streams directly to customer’s internal systems or providing customized solutions within own IT infrastructure. As one of the most prominent examples of 2021, we are transferring Sberbank’s live FX quotes directly to another financial institution internet-banking, so that its customers can actually see our base price. We increased our RUB volumes up to 3 bn and now Sberbank global market share exceeds 20%. Our internal FX liquidity pool turnover exceeds 60% - the size of the whole public market volumes in Russia. That is an outstanding leap and we believe Sberbank is a worthy candidate for Efma-Accenture Banking Innovation Awards 2021.