Digital Factory: VTB management decided to expand its product’s line and tools
Gone are the days when banking institutions invested in high-tech start-ups to obtain and implement these or other technologies. The era of creating your own products. It became known that in March 2019, VTB organized a digital factory to develop services for business.
It is noted that the new division will begin to create non-bank integrated B2B solutions that are interesting to small and medium-sized entrepreneurs. In addition to the digital factory, VTB opened a grocery. Its task is the development of transactional and credit products. The target audience for these solutions is again businessmen. Most likely, the Russian VTB will follow the path of Sberbank and create its own ecosystem, including not only banking but also other tools.
Digital factory and risk diversification through the acquisition of parts in fast food
The Russian VTB Bank was not the first organization to invest in American business. This time, a financial structure with state participation has invested in the KFC fast-food chain. Now the consortium owns one-fourth of all fast-food restaurants located in the Russian Federation (there are more than 750 outlets in total). The deal is estimated at 150 million dollars.
This decision had a positive impact on the total value of the shares of the second largest bank in the country (and first in the size of the authorized capital). Analysts say that successful investments in a US company can increase the value of VTB securities by 88%.
It should be noted that KFC is not the first investment of VTB in the restaurant business and the catering industry. In 2012, the bank acquired 48% of the Russian part of the Burger King network. The total value of the transaction exceeded 50 million dollars. In subsequent years, VTB sold the assets of a network of American burgers, earning more than $ 80 million in transactions and retaining about 20% of the securities.
The prospect of investing in securities of companies operating in the field of fast food is beyond doubt. In particular, KFC sales in Eastern Europe grew by 20% over the year. In terms of growth, the region overtakes only India.
Banking structures are traditionally interested in large businesses with high growth potential. The horizon of investing in HoReCa does not exceed three years, and profits can reach hundreds of percent. Experts predict that thanks to the bank’s investments, the number of KFC fast foods in Russia will increase threefold in the next five years.
KFC plans to bring the number of restaurants in Russia to 1950 by 2020 by the year. McDonald’s plans are much more modest – 680.
It is expected that the profit obtained from the growth of shares, VTB will finance in non-bank projects, in particular, in the digital and food factories.