Balti Investeeringute Grupi Pank (BIG) decided to discontinue SMS lending and focus on selling small loans only via traditional electronic banking channels.
BIG discontinued the development of SMS lending services and also, from Tuesday, 28 August, marketing activities relating to SMS loans.
To explain the decision, Chairman of the Management Board of BIG Targo Raus said that the main market for BIG consists of consumer loans and small loans; SMS loans do not constitute a sufficiently large product sector for the company. "The arguments against SMS lending are also disproportionately strong when compared to the demand, which is why we specifically do not wish to continue with the development of this product," Raus said.
BIG had been offering SMS loans since the end of last year. "We have gained valuable knowledge over these ten months and we have used it to supplement and enhance our product range and service channels. Our product range includes new smaller loans with shorter payback periods, available through traditional banking channels, the price level of which is several times lower than that of SMS loans. We believe that we can offer our customers much more convenient and better services than SMS loans," Raus said.
According to Raus, BIGs experience shows that mobile phones have great potential as an electronic banking channel in the future. "Our feedback and customer surveys prove that people appreciate simple, convenient and quick banking solutions and are ready to pay a slightly higher price for these advantages. This is why we believe that mobile banking will play an important role in the future and we decided to focus on developing new and enhanced solutions in this area," Raus noted.
BIG offers all of its current customers the possibility to exchange the SMS loan service for new and better priced loan products. Registered clients can continue to use their customary services under new, more favourable conditions, but our aim is to smoothly redirect our clients to using new products.
SMS loans formed a little more than 1% of BIGs loan portfolio as of the end of the first half of this year.
Balti Investeeringute Grupi Pank is an Estonian-owned bank and one of the largest specialist lenders to private clients and companies in the Baltic States after universal banks and leasing firms. BIG employs over 300 people.
BIGs bonds are listed on the Tallinn and Stockholm stock exchanges.
For further information please contact:
Targo Raus
Chairman of the Management Board
Phone: 6309 938
E-mail: targo.raus@big.ee
