Sberbank of Russia (SBER) Earnings Call Transcript & Summary

Good day, participants. We're continuing our Investor Day. On the previous day, the Sber's top management team presented on Strategy 2020. I hope all of you were able to join us. Today, our focus is going to be on development prospects for individual businesses. Kirill Tsarev, Deputy Chairman of the Executive Board and Head of the Retail business; and Natalya Alymova, Senior Vice President, Member of the Executive Board and Head of the Wealth Management Block, are going to present first. They will, together, discuss our B2C area. Asan Kurmanguzhin, General Director of SberMarket, is then going to talk about the development of one of our growth drivers in the e-grocery industry. After that, Anatoly Popov, Deputy Chairman of the Executive Board, Head of the Corporate and Investment business, will present our B2B strategy. And Alexander Sysoev, Founder of 2GIS, a mapping service company that has recently become part of Sber ecosystem, is going to close the day. Immediately after the presentation, we will hold a Q&A session as usual. Those of you who have registered in advance for [ immediate ] questions will be able to ask them live. In addition, all of our participants can send their questions online on the Investor Day website. As on the previous day, let me quickly walk you through the technical details. Our event is being recorded today on the 1st of December 2020, and will take approximately 2 hours. Its media recording will be posted on our website at sberbank.com/investorday. Projections, estimates and expectations related to our future results and events may be presented during our conference today. These projections are subject to risks, known and unknown to us, and they may, therefore, differ materially from our actual results. For more information, please see the Special Counsel Disclaimer clause on our website site. And with that, I'm going to give the floor to Kirill Tsarev for the first presentation. I hope you enjoy watching.

Good afternoon, ladies and gentlemen. Yesterday, you heard about the main focuses of our integrated strategy. Today, I would like to talk, in more detail, about our retail customers and the way we are becoming a trusted assistant and navigator for them in the changing world. I'm confident that it's no news for you that we have more than 98 million active customers, which is 67% of Russia's population. And the number of customers is growing. Just in the third quarter of 2020, we acquired 847,000 new customers and most of them are young people. The majority of our new customers are aged between 14 and 25, while the average age of a new customer is 24 years. Every customer is unique, and all of them can have various roles during their customer journey. Being a child, spouse, a parent, an entrepreneur or an employee. At the same time, these roles are dynamic and evolve as time goes by. That's why every customer needs a unique personalized approach at each stage of their customer journey. All of them have similar needs, which are live in a better home, go for a holiday, have a good dinner. You may ask what the bank has to do with all this? The thing is that the financial services are an integral part of the process of satisfying the needs of our customers. Various needs is something that people have since their early childhood. Today's parents want their children to quicker embrace financial literacy and learn the ways to manage their money. That's why 2 years ago, we launched the first in Russian banking app with a virtual banking card for children. We named it SberKids. This app is used by more than 420,000 kids age from 6 to 13 years. While Russia has almost 14 million children, we see that our customer base grew 3.5x only over the past year. My children also use this app. When children leave school and enter universities, they start receiving educational scholarships. 784,000 students use our bank to receive their scholarships. In the end, children enter the adult life and start to earn money. Today, Sberbank is used to pay salaries to 28 million customers. After completing their careers, people continue to get income, but now in the form of pension payments. For us, it's paramount to make this process seamless and convenient so that it is almost unnoticed by our 28 million customers receiving pensions. Besides that, at any stage of their life, people may need to receive social payments, grants, allowances or subsidies. This category includes 25 million people. In 2019, we launched the, first in Russia, payment service for self-employed. And we already have 200,000 self-employed experts signed up out of the total estimated 17 million self-employed in Russia. Next year, we'll launch a service for mass transfers to self-employed from their work providers. This is a huge potential as all major marketplaces like taxi, delivery, repair and chose their services, increasingly work with self-employed. The key factor of our growth is seamless experience for our customers as they move to a new stage of life. That's why we have an ambitious plan to increase the number of regular payment recipients since birth by at least 6 million customers by 2023. But the money we earn are not always sufficient to buy what we really want. Here, lending products can help. Now our lending process is one of the most technologically advanced worldwide. Already now, we issued 94% of loans without asking customer for statements. And next year, we're going to issue all loans like that. 97% of loan applications are processed fully automatically in 2 minutes. We have long been the leader of the lending market. Our share in consumer loan market is 34%. And the share of credit card market is 46%. While increasing our market share, we maintain high-quality of our loan portfolio. The level of overdue debt in our loan portfolio is 2x lower than in the market on average. Our next step is to calculate credit limits and proactively offer loans to our customers. A lot of people could take a loan, but they're reluctant to do so due to various reasons. For example, they are afraid to be refused. We give our customers the opportunity to afford the things that really want and to expand their possibilities. This year, we launched a pilot to prove that with credit potential, the average amount of loan can be increased by up to 15%. We've clearly defined our focus of growth. Credit potential is integrated into every surface on the earliest stages of the customer journey. And this is particularly important. We want to offer our loans at the product selection step rather than at the payment step as it is now customary on the market. As for our mortgage process, we go even further. We've created a service to solve any housing issues with just one service, as quickly, cost efficiently and safely as possible. DomClick service is already the third among real estate marketplaces in Russia and the first by the number of advertisements on the secondary market. This year, DomClick MAU have grown to 10 million users. By 2023, the number of unique monthly users of DomClick is expected to grow more than 5x comparing to 2019. We've launched a number of services to simplify real estate transactions. They make it more convenient and reliable. This is the electronic registration service, quick settlement service, due diligence, insurance, and real estate transaction without mortgage. Thanks to this, in 2020, we will earn an additional RUB 6 billion. And by 2023, we will double this amount. The process of paying for the goods and services that our customers purchase with their own or borrowed money can be as simple as seamless as possible. A transaction that is most time-consuming for customers and least profitable for banks are cash transactions. To grow in noncash payments, in 2014, we launched a Cashless World program. We mainly focused on developing the network across Russia and becoming the driver for cashless transaction volume growth in the country. In 2019, according to Nielsen report, we were the third largest bank globally in terms of the number of transactions in our acquiring network. By the way, you have to know 2 indicators to understand our position in Russia. The second Russian bank following us is ranked 35th, processing 9x less transactions as we do. And we see here a huge growth potential. In 2019, Russians spent RUB 59 trillion, and about half of them were spent in cash. That means we have a long and exciting journey ahead of us. To make payments quicker and easier, we equipped our entire network of terminals and cards with NFC chips. Already 3 years ago, we launched Apple Pay and the Android Pay. Currently, 21% of the payments of our customers are made with Pay's system when customers hold their smartphone or smart watch near a terminal. This year, we launched our own pay system called SberPay. Its key feature is that it uses not your card but your account to make a payment. You can assign your ruble a foreign currency account or account with loyalty bonus points. This initiative will help us avoid using plastic in the foreseeable future and is consistent with the ESG strategy of Sber. There are also some other limitations of using plastic cards. For example, a customer may have several cards, but the payment should be made to the specific card where there may not be enough funds. Such situation is quite common for subscription services. According to our data, up to 10% of all transactions are rejected due to this reason. Every tenth customer has either enough money on other cards or had a credit card as well. If we could avoid that, with [ less ], our customers receive goods or services they need, sellers could receive their revenue and we could earn an additional fee and commission income amounting to around RUB 2 billion annually. That's why we fully redesigned the paradigm of managing customers' money. Before, a customer had money that were placed on an account with a card number tied to it. And the card was made in plastic, too. Any problems with cards or problems of our customers, meaning, they were our problems as well. In the future, we plan to offer an electronic wallet instead of the card. All the money will be stored in one place while you will be able to access, not only your own money, but bonuses and loans alike and configure cascaded debit. For example, soon, you will be able to set the following sequence of debiting. Spasibo bonus points, debit card, then credit card. In this case, after spending Spasibo points, you spent money from your debit card. If it's not enough, your credit card is used. Easy and quick payments are important, not only for individuals, but for organizations as well. For example, for off-line merchants, we installed smart cash registers, 3-in-1, together with Evotor Company. They support all payment technologies, NFC, QR and potentially, biometrics. For online merchants, we offer an e-payment service in collaboration with our company, I-OMoney that has been recently rebranded. Retail customers can use it to pay for purchases with their e-wallets online. 120,000 websites can leverage I-OMoney to easily accept payments from 60 million users. However, there are industries requiring special payment solutions. For instance, transport, people use it every day. And payment of fares is one of the most frequent and popular transactions. The volume of payments for public transport in Russia is RUB 340 billion annually. More than 130 Russian cities already use our payment solutions. Just to understand the scope, according to one of the payments, every fifth payment of transport fare with a card, globally, is made through Sber acquiring. It's important to note that public transport in Russia is municipal with governments providing benefits for some categories of people. The fees are also differentiated by travel frequency. We, together with the government of Moscow and the Moscow region, created a company that will leverage the experience of Troika and Strelka commute cards for seamless payments in public transport across a number of Russian regions. Our goal is to scale this experience on a national level. For B2B transfers, we, many years ago, created the most user-friendly tool in Russia, removing the need to enter the number of bank accounts and even bank cards. Money transfers with phone number became the new standard in our country. If someone needs to transfer money, the answer is clear, "transfer to Sber" became as set expression. Our technology of transferring money using phone number became a standard for all the players of the national banking industry. And faster payment system is based on this same technology. This year, we joined the faster payment system, and we can now see that incoming payments are thrice as many as out-coming. Now our ambition is to create the same user-friendly and high-quality service for cross-border transfers. We expect that by 2023, customers that need to transfer money abroad will choose our service as naturally as they now choose us for internal transfers. Today, we earn around RUB 3 billion with cross-border transfers. And by 2023, our plan is to grow it to at least RUB 8 billion. We perfectly understand that people need a wallet, not only to spend their money, but also to save. For many years, the main savings tool in Russia was a bank deposit. We are going to migrate to end-to-end product offering based on the personal finances management. This topic will be covered in more detail by my colleague, Natalya Alymova. As I have mentioned before, we serve 98 million different customers, and every one of them is unique. We must not just satisfy their needs, but anticipate them at every stage of their customer journey. To do this, we created a single customer database, Sber Profile, to consolidate all the data from all the various systems we have, well beyond financial customer profile. Based on this information, artificial intelligence will predict customer preferences for every stage of their journey and offer the most suitable products available in our ecosystem. By making individual offerings and using personalized approach to every customer, in 2020, we boosted our sales that will generate additional RUB 75 billion during product's life cycle. In 2023, thanks to more accurate and targeted offers based on customer journey and CLTV approach, we will further increase our sales that will generate revenues of RUB 150 billion during the product's life cycle. I must say about the key channel for customer interaction, our mobile app. Currently, we already have 64 million MAU. We are more popular than widespread social media, next only to WhatsApp and YouTube. In 2023, we will have more than 75 million monthly active users, which will support our financial result. Since already now, we see that the operating income generated by customers who prefer digital channels is higher by 1/3. During the last years, we dramatically increased the share of digital sales. 7 years ago, it was not higher than 1%. 3 years ago, it reached 19%, while at the end of the third quarter, we achieved 52%. We expect that by 2023, digital channels will account for at least 65% of all our sales. Our app is one of the most advanced in Russia and Europe and we continue to improve its convenience and functionality. These achievements are reflected in our ratings. Our app is the price winner of [indiscernible] in Finance and Business and Brand Application categories, and the winner of the International Prize, Red Dot. To make the app more native, we integrated a voice assistant that helps our customers make voice transfers and more easily navigate through the app. Besides traditional banking services, we developed our digital ecosystem. The key driver of ecosystem development is comprehensive product offering that can satisfy the most common customer needs, movies, music, groceries and food delivery, taxi, et cetera. For that, we offered SberPrime. These subscriptions with tiered fee plans based on service package. In the near future, we'll shift from setting fees for separate services, including banking, to comprehensive plans that will be transparent and easy to understand, increasing the penetration of our products in the customer base. We expect that by the end of 2023, we will have at least 10 million customers with 2 or more nonfinancial ecosystem products. Currently, we have less than 500,000 customers like that. It's a several fold growth that will help us to provide a new quality service for our customers in nonfinancial areas, while preserving all those things that we have been creating in our banking products for years, meaning saving time for our customers as time is the most valuable resource we have. And now I'll give the floor to Natasha (sic) [ Natalya ]. She will talk about our solutions to satisfy another 2 essential needs for our customers, save and protect.

Thank you, Kirill, and hi, everyone. Today, I will tell you about 2 young and very dynamic financial business segments of the Sber ecosystem, investment savings products and protective insurance products and services. Let's look at the journey of Wealth Management in Sber and where we see ourselves on the horizon of Strategy 2023. Over the past 3 years, assets under the block's management have doubled to RUB 1.7 trillion. Operating income increased by 57% to RUB 121 billion. We are already leading in our key markets: life and property insurance for individuals, pension and asset management. Our company, Sber Asset Management, has been recognized by the professional community as the best asset management company based on 2019 results. This year, the block's entire product line migrated to digital, filling the insurance, pension and investment mods already used by millions of our clients. 90 million clients chose us for life insurance and over 7 million for risk insurance. The 9 million clients have entrusted us with mandatory pension insurance contracts. 1.7 million Russians are forming their non-state pension with us. The number of unique clients who signed up for investments and savings products during 9 months of this year reached 700,000 people. First we'll talk about savings and investments. The Russian investment market is experiencing a real boom this year. Already, more than 7.5 million people have access to the markets of the Moscow Exchange as of the end of October this year. Since the start of the year, and this is very telling, Russians have opened almost as many individual investment accounts as in the previous 5 years. These figures are impressive. But in the overall structure of the savings of Russians, investments currently account for only 15% the rest of deposits and accounts. In terms of deposit rates, we're close to markets where the share of investments in savings exceeds 50%, and we expect significant growth here as well. Against the backdrop of declining inflation and rates, as I have mentioned before, the investment activity of the population has already started to grow rapidly. On the one hand, this growth is constrained by the real income level of the population. But on the other hand, it is encouraged by the current situation that drives savings behavior. We estimate that by 2023, the total amount of Russians' savings will grow by almost 40%. The share of deposits and structure of noncash savings will decline to 81%. We expect the highest growth rates for brokerage accounts and open mutual funds up to 17% per year. And this is good news because Sber is the largest broker and holder of the largest share of open and mutual funds in the country. The share of investments, in the structure of noncash savings of Sber clients, will grow from 13% to 23%. What do we believe in? First, the number of people with savings will grow and we'll help them. Second, savings are not a onetime purchase. It's an entire system, and we're building it right now. Third, we start with the clients' goals and earn on scale and positive customer experience. It is especially important to us that the first investment experience of the client is the best in the market, and that's a huge responsibility. Fourth, we build the best customer experience based on artificial intelligence. Fifth, we will increase the frequency of contact with the client. Who says that this is the exclusive domain of a transactional business? There are many solutions for managing personal finances on the market, but no multipurpose solutions yet. Our goal is to create a solution that will include expense management, capital management, financial consulting and advice. We will show that by saving only RUB 100 a day, you can provide yourself with a decent pension. On the other hand, we will advise on what other people, such as the Director of our management company, invest in. We'll help optimize an existing portfolio. The personal finance management platform, PFM, will be built into all relevant points of contact with the client and help make the right choice. Our goal is to go beyond simply executing the request of our clients and become their full-fledged assistant. The next best action recommend the system allows us to offer the right product to the right client at the right time based on data. And of course, we will be present across the entire ecosystem, not limiting ourselves to its banking parts, and we already have something to boast about. 16 million clients use PFM's online services every month; 11 million clients use the personal finance analysis service; and 4.5 million use the wealth analysis service. Our money boxes have already attracted around RUB 50 billion in deposits and clients transfer more than RUB 5 billion from them every month, all the new streams as well. For example, commercial real estate and mutual funds. Last year, the net asset value of closed real estate and mutual funds managed by Sber Asset Management increased by 70%. So we decided to concentrate this line of business in a separate management company called Sber Real Estate Funds. This line of business is particularly unrepresented in Russia right now, while in developed markets, it amounts to around 10% of all investments. I never managed to buy this product myself during the subscription period. The clients literally deplete all limits on the first day. And of course, we want to offer them a totally different scale. Among other growth points is further development of exchange-traded mutual funds. We were the first in Russia to launch exchange-traded mutual funds and are leading in this young and fast-growing market. Our bet will be on the distribution of these funds through brokerage accounts. The pension savings management market will reach RUB 6 trillion by 2023. However, today, it's practically frozen. Our goal is to manage our portfolio effectively to ensure high yields for our clients and generate stable income for our shareholders. The main growth driver is the non-state pension market. In retail, this means significant opportunities for developing online sales with individual pension programs in both mass and premium segments. Sberbank actively promotes the reform of the pension industry, in particular, its tax incentives and introduction of the concept of a guaranteed pension plan. We expect that when implemented, these initiatives will give momentum to the development of the industry and our pension business. When was the last time you looked into your future pension? Soon, you will be able to see it in the Sber mobile app and decide whether you want to increase it. All this enables us to set ambitious goals by 2023. We expect that 20 million people will use personal finance management services every day. The number of clients who make savings will increase 1.5 fold. Retail investment products and brokerage services for individuals will provide more than RUB 100 billion of operating income. Now let's look at risk insurance. The insurance market is lagging behind banking in terms of digitization. There is not a single insurer that uses artificial intelligence as a key advantage for clients and for themselves. And the main thing is that natural demand for insurance in the market is limited. There's a notion of high fees and complicated settlement. The average American family spends up to 12% of its monthly income on insurance. Russians have practically no such expenses. We have a unique opportunity to set new standards in the market and leaders change. How are we going to do that? We believe that the holistic development of the insurance business post the following objectives on our agenda: improving customer satisfaction, developing the digital business model and using artificial intelligence in determining rates, preventing fraud, providing settlement and delivering other services that qualitatively will lead to significant business growth. And of course, we will significantly expand our presence in the largest market segments where the group was poorly represented: car insurance, voluntary health insurance and corporate insurance. Our product range already offers protection for any situation, available both in Sber's brick-and-mortar branches and online. We will be switching to subscription technology to maximize flexibility and efficiency. The clients only wants to pay for what they really use. The time has come to apply this principle to insurance as well. The dominant segment of the long life market is car insurance. This year, we entered this segment new for us by creating the OSAGO marketplaces, Sberbank Online. KASKO insurance policies will soon be available for purchase there as well. For the strong 12-partner insurance companies are offered in the marketplace today, Sber Insurance is also entering this market and plans to become a leader there. The second largest segment of the non-life insurance market is voluntary health insurance. Today, 95% of this market is corporate insurance with very tough competition for large clients. At the same time, insurers are reluctant to work with small and medium businesses. To enter voluntary health insurance market, we're creating simple box products for individuals and online building kits for small and medium businesses, including Sber payroll clients. For large corporate clients in voluntary health insurance, we will compete with individual solutions in terms of fee policy and wide range of additional services. Right now, we are preparing to launch a new engine, the insurance pipeline, which we are creating based on the huge experience gained from developing our famous Credit Factory. And no one in the market today has such an amount of data. This is our competitive advantage, one we're going to use to the fullest. Corporate insurance has historically been the most conservative. In corporate insurance, we're developing cooperation with Sber's largest business, the Corporate and Investment Business Block. We see this synergy as a strong driver for sales growth. We will continue this cooperation by developing products in line with industry-specific strategies of the corporate business and embed in them in the key services for corporate clients. In particular, the Sber business app. We also plan to focus on developing and launching insurance products in tandem with our core banking products. We will restart corporate sales in Sber Insurance, diversify the product line, introduce technologies for participation in tenders and government procurement and significantly strengthen the team. We see great potential in developing cooperation with companies of the Sber ecosystem. Insurance is complementary to all products and services of the ecosystem companies. Here are just a few common points. Through SberHealth, we offer voluntary health insurance support for DomClick property insurance; for Sber Logistics, parcel insurance; for Sber Mobile, smartphone insurance. Sber has always been about large volumes and best results and our ambitions in the nonlife insurance market meet these criteria. In 2023, we see ourselves in risk insurance with a double-digit market share. It will bring Sber more than RUB 100 billion of operating income. Thus, the total operating income from investment and risk insurance products will exceed RUB 200 billion. This concludes my presentation. Thank you for your attention.

Good day, dear investors and shareholders. Today, I'm going to tell you about the SberMarket service, Russia's leading in delivery of grocery orders made online. That is one of the largest consumer markets in our country. This year, the retail grocery market will total about RUB 17 trillion this year. Our key mission is to save our clients' time, money and energy. We reckoned that on average with us, our users save about 3 hours a month. If we look at an average Russian family, we will note that about 30% of its budget is spent on groceries. A Russian grocery delivery market is at an early stage of its development, and therefore, has a huge potential. But this year, the share of e-grocery in Russia were only near 1%, while in the developed markets, this indicator varies from 5% to 15%. The start-up was created in 2013 by 3 young entrepreneurs, Peter Fedchenkov, Andrey and Dmitry Zhulin. In the beginning, the growth rate was quite moderate. Our 1 millionth order was delivered in March 2020, 7 years after the first order had been placed. Another 1 million of orders was delivered in just 70 days. Now SberMarket is growing rapidly, about 11x year-on-year. This year, we will reach a turnover of over RUB 20 billion. This was enabled by key 3 factors. First, we are a part of the strongest ecosystem in the market. Second, we are constantly improving our service. And third, the scaling of our business had been accelerated by the pandemic. The ecosystem has significantly accelerated our growth and I will give you just a few examples of what made that possible. First is their prime subscription. Subscribers enjoy free delivery from our platform. 6% of our clients have already subscribed despite the fact SberPrime was only launched 6 weeks ago. Moreover, the subscriber usage statistics show that we are one of these services that motivate new clients to purchase SberPrime. For us, this is one of the most profitable induction channels. The second is the integration with Sber Spasibo loyalty program. It provides its users with a discount coupon in our app. And next year, they will be also able to pay with Spasibo loyalty points. Third, it is the fact that we saved about 30% of SberMarket's advertising budget by joining Sber contracts and marketing. Of course, one of the most important roles is played by the brand strength. In September last year, we launched a pilot rebranding in Krasnodar and Rostov-on-Don. We discovered that the conversion of SberMarket is 40% higher than that of the previous brand. This gave a significant impetus to the country's growth for the people will not entrust just any brand when selecting groceries for themselves and their families. Sber is a brand that people trust. Many people ask me how technological start-up can get along with such a gigantic partner as Sber. And our answer is Sber's participation did not hamper our company. On the contrary, it allowed us to drastically accelerate the growth of our business. I'd like to have a clear vision of how the ecosystem, that we are part of, will develop. And at the same time, we are fully independent in making decisions. And we are quite happy that Sber will become our majority shareholder. The second factor is a significant improvement in the quality of our service. SberMarket orders are now rated at 4.85, notably higher than a year ago. And this focus on the quality of service leads to the increase in the number of regular clients. 64% of our orders are received from regular clients. The third factor of growth was the accelerated scaling during the pandemic, which gave a new impulse to the development of online services. We opened in all the federal entities of Russia in just 2.5 months after the restart of the lockdown. This was possible, among other things, with the ecosystem's support, including the help of [indiscernible] in finding local partners. And the input from the hands of Sber's regional chiefs in partnering with leading regional retailers. We worked so well together that in some places that were locked down, our business was started by the bank employees. As a result, over the last year, we have increased the total number of retailers from 5 to 63. Those include Russia's best and top chains, METRO, Auchan, Lenta, O'key, Vkusa and Croydon. That have also expanded our delivery area in ninefold to 147 localities, reaching the total of 50 million people. All this allowed SberMarket to become a solid e-grocery leader in the third quarter of this year when our turnover exceeded RUB 4.6 billion. I'm particularly pleased to announce that SberMarket was recently ranked. Europe's fifth most downloaded food and grocery delivery app, which puts it alongside such majors as Uber Eats and Just Eat. In our strategy, we identified 3 priorities that determine our clients' decisions and will thus put us indisputably in the lead. The first are the lowest prices. The second is the most relevant product mix. And the third is the fastest and smoothest delivery. How do we plan to achieve that? First, we offer the lowest prices through direct cooperation with manufacturers in promoting their brands and optimizing their marketing budgets. For example, every fifth SberMarket holder now includes a gift from the brand. We plan to develop this cooperation further. Second, we provide the widest range of products through extensive integration without partner retailers. How does that work? We ensure a dramatic increase in online sales for these retailers, and more importantly, help them manage their product mix and provide a more comprehensive assortment of goods on their shelves. This translates into growing sales, both online and off-line. Retailers highly appreciate such partnership. Third, we provide the smoothest client experience based on the technologies, but enable personalized selection of goods and every user's basket and the highest convenience in receiving orders. They can be selected from advanced product range of hypermarket and delivery in 2 hours or from a supermarket for 30-minute delivery. Moreover, we understand the importance of putting growth behind and breaking even. In the next few years, we plan to double our turnover every year. And by 2023, we expect positive EBITDA. This will be facilitated by 2 key factors. The first is development of advertising revenue area at our platform, which I have already mentioned. In October, this revenue reached about 1% of the GMV, and we plan to grow it to 4% in 2023. The second is that we have significantly rationalized our logistical costs through both higher audit density and advanced routing and utilization management for our operational partners. We understand that the main growth is yet to come. However, we see huge opportunities and strive to become a reliable and profitable online grocery delivery service for our clients. Our presentation is now complete, and I will be glad to answer your questions.

Hello, and thank you for joining our conference. Let's have a closer look at our corporate business. In 2017, our task was to transform our business in terms of both technology and quality to free up the time for our customers for creating and developing their business. Over the 3 years, the number of new customers who have entrusted their business to us, grew by 900,000. Today, the customer base of Sber's corporate and investment business includes over 2.7 million companies. Such a growth in the number of customers was enabled by the launch of new digital services and initiatives that freed our customers from routine transactions and contributed to a better customer experience. We have significantly increased the speed and availability of credit transactions for corporate customers. For example, the duration of a payment transaction was reduced to 1 second, and the payments became available 24/7. With the launch of a new generation of quick and smart loans based on artificial intelligence, we no longer need to request a lot of documents from our borrowers. Thanks to these technologies, we can make decisions on loans based on customer data that are already stored in the bank or available from open government sources. As a result, over 800,000 micro and small business customers have received preapproved loan offers and over 25% of loans to small businesses get approved in 3 minutes. For middle and large businesses, over 30% of decisions on short-term loans take no longer than 7 minutes. In addition to that, digital services have saved the amount of paper comparable to 8 hectares of forest. And freed up to 15 days per year of our customers this time, which they can spend on growing their business. Thanks to these technologies, we can make decisions on loans based on customer data that are already stored in the bank or available from open government sources. All of them became available 24/7 in our digital Sber business app, which now has about 2.3 million users. Every quarter, we release and seamlessly add over 200 enhancements to Sber business and our fintech API allows us to quickly integrate with our partners we have implemented more than 80 integrations with major companies. When we launched the new version of Sber business, it only took us 4 months to transfer all our customers to it. To put it into perspective, before, a similar transition used to take more than 18 months. The business issues being resolved here and now as well as the simplicity of the solutions have been highly appreciated by our customers and recognized internationally. Sber grew along with its customers. We enhance our product line cover as many business needs as possible from the registration of a company to interaction with authorities. Many of our customers are priority individuals who thought of opening their own business, but ultimately stepped back for fear of potential complications and expenses related to registering their own business or company. We have done our best to facilitate and simplify this process as well. In 2018, we launched a free service for remote business registration and account opening. We also came up with an initiative to abolish the state duty for business registration. A business in Russia can now be opened free of charge. Later, we eliminated 1 more barrier. We launched a product line for entrepreneurs who are just starting the business, including Russia's first package for RUB 0 called Easy Start. Jointly with our business environment subsidiary, we provide training and consulting support to new entrepreneurs. For instance, the free online program for growing a business by Google and Sber called Business Class has been attended by over 150,000 entrepreneurs. This enabled over 10% of entrepreneurs to start their business from the comfort of their homes. Now one can also start a small business having a self-employed status. For us, this was a totally new segment. We offered self-employed people a needed-to-use solution for their business comprising a set of free services: a digital card, online check generation, customer appointments, legal advice and more. Over 200,000 self-employed people have already registered their businesses our platform called [Foreign Language], translated as, "your business." Over the 3 years, we have completely renewed our range of business cards. This increased the share of settlements and the points of sales made with business cards from 9% to 35%. Another helpful solution is our service called VAT refund in 7 days. This is 10x faster than before the service was launched. In terms of Investment Solutions, we were developing our brokerage business, which demonstrated manifold growth, both in terms of the number of accounts opened, which now amounts to over RUB 2.5 million and the amount of assets under management, which have reached RUB 2.75 trillion. Sber's unique ecosystem for corporate customers includes over 100 services. This is quite a wide offering for any business need, whether recruiting, marketing, procurement, maintenance or security. And we are proud to report that we have accomplished our goal and became the first choice bank. Today, every second SME customer has an account with Sber and every third customer is borrowing money from us. 2020 has affected everyone's life. During this uneasy period, we were there for our customers. We launched a support line, covering business activity issues amid the COVID-19 pandemic, a hotline on HR issues and IT assessment services that determine a company's readiness for remote working. For the period of the pandemic, we've canceled fees for a number of our services, making them more accessible for our customers. We have become the principal agent of the government support. It was largely thanks to our effort that over 200,000 corporate customers received it between March to October this year. As a result, despite the economic slowdown in the second and third quarters, Sber was able to maintain its share of the loan market at the level of 32%. Summarizing the outcomes of our 3-year strategy, particularly during the pandemic period, we have come to the following conclusions: first, a partnership approach to relationship and support during difficult economic times are appreciated by customers and increased their loyalty. The second, operation with the state on creating modern services for our customers has driven changes on the legislative level, building partnerships, both with our customers and with the state enabled well-coordinated efforts during the pandemic. Third, nonfinancial services for business are increasingly demanded by our customers, creating an ecosystem of services for legal entities has provided, a timely response to our customers' needs during this uneasy time. These conclusions have served as a basis for our Strategy 2023. When developing the strategy, we decided to offer unique services to every customer segment and to make the customer journey as efficient and smooth as possible as part of the new B2C to B2G concept. By now, we have already created an extended range of financial and nonfinancial services. Our next challenge is to create personalized and easy-to-use, industry-specific solutions around a particular corporate business entity or around a particular industry. We are no longer a bank. We are a partner, interested in manifold growth and development of the business of our customers. As has already been emphasized by Alexander Vedyakhin, our customers are prepared to consider us as partners in the digitization of their business. This has been confirmed by over 80% of our major customers and over 50% of our customers from large and medium-sized business segments. We are convinced that our efforts in the new strategy will allow us to bring our customer relationship to a totally new level and to grow our customer base to 3 million corporate customers and beyond. Business has 2 key needs: scaling and improving performance. Our objective is to become a partner that will address these needs. As for business scaling, as a company, we have gone a long way of digital transformation from being the savings bank with a pile of paper to offering digital products. A similar transformation is seen in other industries. For example, a growing share of retail is shifting to the e-commerce market. Here, too, we will provide our customers with business growing tools by ensuring them access to Sber's online space and building partnerships using Sber Connect technology. The customers will also be able to maximize the reach of their audience and to flexibly manage their marketing activities with our SberMarketing and Sber target services. In addition to that, we will help our customers to increase their traffic by integrating their services into a hyper local search system and to manage their sales funnels. In terms of performance improvement, we aim to offer solutions which will help businesses to reduce their costs. For accounting and taxation, we have Sber Solutions. If we need talent, Rabota.ru services are there to help you hire quickly and efficiently. We will help to resolve issues related to interaction with and verification of counter-parties, accelerate and simplify money transfers, implement electronic document flow so that customers do business as smoothly as possible. It is currently estimated that the ecosystem gives us access to more than 100,000 customers who currently do not use our financial products. We are starting to streamline customer acquisition from the ecosystem, and we expect that by 2023, every third new customer will have come to Sber having first learned about its nonfinancial services. We are already seeing that the customers who came this way demonstrate a higher level of cross-sales of banking products. This allows us to be optimistic about the monetization of our efforts and to continue working on the quality and number of synergies between our banking and nonfinancial businesses. We continue to develop our partnership with the state. Our ambitious goal is to offer technological solutions for the government at the federal and regional levels. In this field, we will focus on digital sector-specific solutions for transportation, social sector, security, energy efficiency and other areas. We are planning that by 2023, every other Russian region will have used our industry-specific solutions, with 10 regions having access to digital public services through our technological platform. In addition to the digitization and technological partnerships, we see our role as the principal agent of government support to our corporate customers. In this area, we will provide our customers with end-to-end support from paperwork preparation and consulting to transferring government funds to the accounts of our customers. Not only do we create new things, but we also continuously redesign the canons of the classic that is our traditional banking. We develop transactional services by increasing our share of the settlement account market. With our current market share exceeding 25%, we plan to reach 30% by the end of 2023. In lending, we are also shifting to the transactional model. By the end of 2023, we plan to use smart models to issue 90% of all our loans. Getting a loan will be no more complicated than making a payment. It will be sufficient to set the parameters and, in a few minutes, the borrowed funds will be credited to your account. We expect loan portfolio to grow by 15% by the end of 2023. Now I would like to demonstrate our trading platform for corporate customers. Trading becomes as common a transactional service as payments. Currently, our online trading platform called Sberbank Market is now used by over 4,000 corporations and banks. We plan to transform the platform into a solution for large customers. New technologies and AI elements allow us to provide our customers with ready-to-use solutions adapted to their needs rather than means for implementation of their strategies. Major financial institutions are already receiving access to our trading algorithms. Artificial intelligence used by the new platform will suggest how to select the best way to make transactions. Rather than simply getting liquidity management tools, corporations will have ready-to-use offers focused on their business models and needs. The platform will suggest options for hedging, placing or borrowing, taking into account the customer needs and the market situation. Already by 2023, over 40% of our large customers and financial institutions will have used Sberbank Markets and the income generated by the platform will show a twofold growth. I would also like to announce that to improve our performance in serving the large customer segment, we have implemented a number of organizational changes; and united, all units that support major customers into a separate zone of responsibility. I'm confident that this solution will simplify the customer journey and consequently deepen our relationship with the customers of this segment. By developing and enhancing B2B ecosystem services and creating innovative banking products, we are shaping a new business environment and culture. The B2C to B2G environment is quick, only the necessary things in one place, online, 24/7. We want all of us to have more time, not only for doing business as for living our lives in the fullest and richest sense of the word.

My colleague, Anatoly Popov, spoke in detail about B2B solutions for digital business. I will continue this topic. My presentation will be dedicated to the 2GIS service, which is already becoming an important part of the ecosystem. 2GIS is a company from Novosibirsk. It has been around for 20 years already. We have been using the Agile system in our work for many years and our values in general are similar to those in Sber. 2GIS employs a total of over 4,000 people, including 350 development engineers and 1,400 sales staff. The main product of 2GIS is the autonomous map service, which combines a directory of organizations, detailed city maps and navigator. Here, you can find any café, company or store. You can find their phone numbers, address and build a route there by public transport or car or see how to get there on foot. The service works off-line in the mobile apps and online at 2gis.ru. It covers about 500 cities in 11 countries. We have 15 branches and 94 franchisees. What makes us different from our competition, high data quality? We make the most accurate directories and maps. For example, we are the first in the world to show the entrances to buildings. And we are the only ones in the world to show apartment numbers in residential buildings. You can enter an exact dress with an apartment number or name of the company in the search box and the system will lead you directly to the right door. It works in all major cities of Russia. Imagine how it can increase the efficiency of courier delivery. They are estimates from 30% to 100%. How do we do it? Yes, we do actually use the most modern technologies, artificial intelligence and machine learning. But also in every city, we have teams in the field, employees who literally walk through every yard, street and district. Now we have around 500 information collection experts working for us on foot. The users appreciate the quality of our data and the convenience of the applications. That's why our active audience is 51 million people a month, and it has been growing steadily. Over the past 7 years, the total number of 2GIS users in Russia has quadrupled. And the mobile app audience has grown 11x. Not only does the number of users grow, the involvement has been growing as well. Over the past year or 2 years, users opened the app 20% more often. According to data for September this year, our users made 750 million requests in Russia and 180 million requests in the CIA. Our strength is in the regions. 80% of our audience are in the cities from Kaliningrad to Vladivostok. In many parts of Russia outside the capitals, the 2GIS audience even exceeds the population of these cities. For instance, penetration is 135% of the population in Vladivostok, 110% in Kazan, 171% in Almaty. This shows, firstly, that citizens use 2GIS on multiple devices. For example, on a phone or a tablet. And secondly, it shows the tourists coming to these cities use 2GIS on their trips. The penetration in Moscow is currently 34%. And there's more to work on here. We collect and refine the base information ourselves, but we also actively engage users in data refinement and content collection. In October alone, they uploaded over 1 million reviews, photos and updates. In total, our users have written almost 9 million reviews into 2GIS on companies and their cities, describing their customer experience and the Russians. Judging by the way we are growing, you will be soon celebrating the 10 millionth review with us. How do we make money? Such a large and engaged audience allows us to build an effective advertising model. In the search results, companies are sorted in a certain way and, of course, advertiser firms are prioritized. They get more attention. In 2019, the 2GIS Group's advertising revenue amounted to RUB 7.2 billion in total for the branch and franchise networks. The chart shows the dynamics of advertising volume in all our products across the country over the past few years. In addition to the advertising model, we are actively developing the CPA model. From our information apps, you can book a hotel, order a cab, choose an apartment for rent or purchase, or the food delivery from a restaurant and so on. These are our partner programs with such active participants as Citi Mobile, DomClick and Deliver Is Fun, for example. Here, we are only at the beginning of our journey. But this direction shows rapid growth, more than twice every year. Another important direction is goods. For many years, we were a reference book where you could find an organization by type of activity. Since last September, we started publishing product catalogs, prices and price lists. For instance, now you cannot just find all the stores under the power tools section, but also see where and for how much a particular model of screw driver is sold and then order and pay for delivery. Pay via Sberbank Online or I-OMoney. Order delivery via Sber Logistics. These synergies are playing to see here. Obviously, we'll be an excellent partner for Sber in the entire area of e-commerce that Lev Aronovich spoke about. If we are talking about joint opportunities, it's worth mentioning the technical order. Before the deal between Sber and 2GIS was made, we found and described 72 synergies together. 2GIS will become a single geo-platform combining many Sber services. Our maps, directory and navigator will be integrated into City Mobile and Delivery Club. The Summer Cut service is already available in our maps. In January, the maps will be built into Sberbank Online. Over the next year, we will make the best routing for all the roads of Russia, including accurate cargo navigation. We are working on sharing sales force, joint enrichment of customer and user data and joint promotion. In addition, we plan to integrate voice assistance in 2GIS and our navigator in Sber Digital Auto. This is just a small part of all of our ideas. In the course, in this work, we have seen many more opportunities. And this story looks like it can go on forever and ever. In conclusion, once again, about the financial results. The revenue of the main 2GIS company controlled by Sber. It is over RUB 4 billion under IFRS in 2019. And the business margin under EBITDA is 25%. We have been a profitable company for over 15 years in a row. And in the next 5 years, we can double the revenue of 2GIS. In addition, the revenue from the CPA model, payment and delivery of goods and e-commerce, will exceed the revenue from the advertising model. As for the profit, from using a single high-quality duo platform across the entire Sber ecosystem, that's just too difficult for me to estimate just yet, but it looks like it's going be quite decent. Thank you very much for your attention. This concludes my presentation. Now I'll be happy to answer your questions.

[Interpreted] And we are continuing with our conference. We are now kicking off with the Q&A session with all the speakers, the presentations of whom you have just viewed, and we have a financial director join -- who joined us today, Alexandra Buriko. I have video questions today as we had yesterday. I would like to remind you that you should put your hand on to ask a question. You can also ask a question on our dedicated website. I would like to note that there is a feedback form on the website and we would really appreciate if you put your review and your feedback. For those who will be the first will get a small present from us. So first question, Sam Goodacre, JPMorgan.

Good afternoon, everybody, and thanks so much for the call. I've got a couple of questions and the first is related to the retail business; the second, the corporate. Given the NIM trajectory that we discussed yesterday, I was hoping you could give us some color on where you see the trough for retail deposit pricing. And then more of a corporate question. When you look at your SME exposure in light of the impact of COVID, how are you assessing risk in this particular segment? And what is the outlook for SMEs? Are there, for example, any particular subsegments you are more concerned about or any particular sensitivities that are of particular concern?

[Interpreted] Thank you, Sam. So the question about the deposits, Kirill and Alexandra and then Anatoly, you'll have the floor.

[Interpreted] Yes. Thank you so much for the question. The deposit rates, I think, should be discussed not in absolute terms but in terms of the alternatives. Are there any alternatives to invest your money in? And obviously, we understand that there is an additional growth for investment and insurance products. At the same time, we have the special savings account where customers can place their money for short-term -- basically, it has no maturity period, but they can use the money as they need it. So I think that we have to provide the full range of products going from traditional deposits to the wealth management products.

[Interpreted] Please, Alexandra?

[Interpreted] Yes. I would like to build on that. If you talk about the NIM, we think that the deposit rates are currently on the -- they have reached the bottom. There will be some additional decrease in the start of 2021 when the current deposits will grow to maturity and will change to the new deposits. Obviously, the additional decrease of the key rate, if it is possible, if it happens at the start of the year, most likely, might also drive down the funding costs.

[Interpreted] Thank you. These SMEs, Anatoly?

[Interpreted] Yes. Of course, SMEs, the small businesses were hit by the pandemic at the end of March, at the start of April. The bank implemented a number of measures. We have started to actually participate and state support. We were the leading provider of state support in such program as a 0% interest rate or 2% interest rate loan that -- these are the loans to the enterprises that will keep -- that will be written off if they keep 90% of their workforce. Talking about the quality of their loan portfolio, you have to understand that it is important that in these state programs, the bank has the protection, our loans are protected by [ VAP ] Corporation. That's a state corporation. This is for the program for 0 interest rate. We have 75% of the lent money and 80% for the 2% interest rate alone are protected. We look at the dynamics of the behavior of our customers and we see that around 10% of the companies that were hardest -- that were in the hardest-hit areas, industries, we see the fewer payments -- fewer repayments, but the situation is not critical. It is under control. If you talk about the general customer base that is growing and from the start of the year, we have more than 200,000 new customers. So basically, we are delivering on our forecast for the growth of the customer base for 2020. Thank you.

[Interpreted] Yes. Maybe I just like to add a few words. Obviously, we monitor all the lending portfolio for the small businesses. And it's important to say that comparing with July, the important indicator, such as NPL, we see the margin going down nearer to the autumn. So given all the risks that we see and we factor in, the general condition of the portfolio is pretty good, actually.

[Interpreted] Yes. I would like to add to our credit portfolio. From the start of the year for the SMEs is RUB 1 trillion -- RUB 1.7 trillion. And in these 9 months, it went up to RUB 424 billion. That's a significant growth and less than 50% of this growth was supported by the state. And the second half is for the customers that are not in the hardest-hit industries. There are some industries that actually won, thanks to the pandemic. So we are feeling very confident here. And basically, we -- our growth of the portfolio was to double the forecast.

[Interpreted] Yes. Thank you very much. Sam, I think that we've answered your question. If you don't have any follow-up, then we'll move forward. Okay. Next question, Andrey Pavlov-Rusinov from Goldman Sachs.

A question to Kirill about SberPay, I would like to talk about this system in more detail. Maybe there are some details in terms of the development plans. First of all, I would like to talk about the technologies really. Will it be available for merchants based on QR technologies or maybe there will be some other types or mechanisms or streams for development of this solution? What will be the fee plans for the merchants? Will it be different from the current card costs? Maybe it will be a little bit more profitable, more beneficial. It will work in your acquiring network only or your plans or partnerships with other acquirers? And the last question, maybe about the similar measures by the Central Bank to develop the QR technology to pay at the merchants with the use of the faster payment system. Where do you see yourself in this context and what risks it might create for SberPay?

[Interpreted] Thank you very much for your question. If I may, I will start from the end. You have basically formed this pool of questions very correctly because they're all interconnected. We see the developments of the faster payment system built by the Bank of Russia. We see that the international payment system are growing so we have to build the best client services. So providing user-friendly services so that they can use every technologies that they want. And for us, this is the retail customer who is paying for the product or an enterprise and the merchant who sells this or that service or product. So our basic idea and the goal is to provide the entire range of services, so you will be able to pay with QR, you'll be able to pay with a card, with the phone and with SberPay. SberPay will combine a number of technologies. Okay, we're talking about the Internet banking, the online payment, the possibility of paying with QR. So all of these forms will be combined in SberPay. And whatever the customer wants to use, he'll be able to do that. I would not like to talk about the pricing parameters right now. This is more of a commercial question for us, but it is going to be one of the best offers in the market, that's for sure. Thank you.

[Interpreted] Andrey, thank you for that. The next question is Andrey Klapko from Gazprombank, please.

[Interpreted] I have 2 sections of questions, so to speak. First, about the behavior of the retail depositors. What are the main patterns that you see related to the retail deposits? What wealth management products do you offer and why? And what are the main prerequisites for moving from the savings product to investment products? And do you think these preferences of customers will change? And the second question about the savings and about the loans. Maybe some will use the savings to repay the loans. Do you think that this is the trend, that it might happen? Or the savings will grow as the -- I mean the cash is still akin in many ways, so what do you see here?

[Interpreted] Yes, okay. Thank you very much. So Natalya, please.

[Interpreted] Yes. I would like to start. This year, our whole range of products moved to digital and it is offered through Sberbank Online app. We saw a very interesting behavior when these products were just launched there and the most simple products were the most popular ones. We talked about the ETFs and the other mutual funds. As for the ETFs, we saw an explosive growth. Compared to the customer base, it was not as promising as the mutual funds, but if you talk about the premium segments, we talked about the trusted management and about the savings life insurance and the closed mutual funds that -- the amount of which increased by 70% this year. I talked about that in my presentation because I said that this business is going to be developed by us. I would like to also just say that when we formed our vision by 2023, we have combined all these ambitions that we have in the investment business. We will still have the increase of the -- of our savings, of our deposits because we'll look at the entire wallet of the customers. So we don't see any threats for the liquidity of the bank. Maybe Alexandra will build on that and comment on that. But that flow that we see due to lower rates and due to the inflation is considered by us as healthy and it's pretty much diversified in terms of the types of products that our customers start to use.

[Interpreted] Thank you, Natalya. Kirill?

[Interpreted] Yes. I will talk about the lending and about the first part. Customers have a higher demand for various services and it's very important to provide the entire range of services. This is why we ensure the seamless opportunity to go from one product to another. And we think it's very important for the customers to have a balanced portfolio so they won't only be in cash or in shares. So we will build this common system and we have started to do that in our mobile app today, helps to make these transactions and these movements easily and seamlessly. As for the loans or for the loan burden, we don't see it as a risk because the quality of our portfolio and the CoR are on the good level. They are lower than the market, as I have said before, so the situation is pretty good.

[Interpreted] Just a few words. As Natalya has mentioned, in our model, we have the decrease of the retail deposits. It was [ 67% ]. At the same time, the corporate deposits are going to grow even quicker than the market. Thanks to that, the liquidity will be balanced. And we don't see any significant threats. That's true. As for the -- I mean there was a question about the early repayment. This year, we see the early repayments are quite active including for the mortgages. In terms of the lending, it's a good positive factor and it is happening quicker than the market goes, actually.

[Interpreted] Yes. Thank you very much. Yes. Thank you, colleagues. Another question from Elena Tsareva, from BCS.

[Interpreted] I have a question about the corporate services, the corporate customers. Anatoly said that there will be many exciting services, complementary services, for the corporate businesses. Will there be any complementary services for the retail customers? And this business that has been actively developing, together with the states on various levels, who -- what are the other players in the markets that are going to take active part in that business?

[Interpreted] Yes. Elena, thank you so much for that question. If you go to our website, I don't know if you know it, Global Finance, we got the best corporate website award just 2 years ago. You will see the packages and these packages include the non-financial services. The higher the range of the package, the more services you get. Our concept is to give -- to maximize the number of services that we provide to our customers. Accounting, electronic document flow, we try to fight paper, we try to cut paper in our organization and the organizations for our customers and that will also increase the efficiency of the cooperation with the partners. So the number of non-banking services within our service packages are going to grow and our customers -- well corporate customers, they are industry-specific. And we have some special packages for trades, for commerce, for other areas of the businesses and we want this package to reflect -- the non-financial services have to reflect the business -- the nature of the business of the enterprise that we serve. If you talk about the second part of the question about the composition and the state support, well I think you know that list is pretty well, but our bank is -- takes pride in saying that we are a bank of the first choice because around 80,000 enterprises are registered in Russia every month and Sber -- the majority of them selects Sber as the first-choice bank for settlement. So we'll be very much excited about the competition.

[Interpreted] I would like to maybe change the question. It's not about the state support, but about the project strategy for the state in security and transport and along these areas, maybe will be some other players who are engaged in similar activity.

[Interpreted] Well if you talk about the technological transformation, the so-called tech transformation, yes, we are running into certain other banks. But it's generally not about the technological solutions, it is mostly about financing. Yes, we are in competition with some folks, but then the cybersecurity services that you mentioned or the platform services, an example can be found in what we did with the Tatarstan teams, the subsidy of service. We don't see any other banks working in these areas. IT players are more of a competition than the banks.

[Interpreted] Great. Thank you and moving on and we are taking a question from the site. Asan, a question to you. Are you planning to expand into nonfood, into IP, and build your own warehouses? And again, during lockdowns, many customers tried e-groceries, but then you are still expecting an explosive growth going forward until 2023. What are the triggers? What are the causes?

[Interpreted] Yes. The first question is about nonfood. [Foreign Language]

[Interpreted] It looks like we have a problem with the English language. We will do a follow-up and do an English voice over ones we have finished the session. Right. The next question is from Andrzej Nowaczek, HSBC.

I have a couple of questions. Okay. Can you hear me better now? Okay. First, a follow-up question on the fast-payment system. From what you said, it looks that it may -- the idea may not have been as detrimental to your market position in payments. Would you agree? And if that's the case, do you think the Central Bank may try to find other ways of curbing your market position?

[Interpreted] Yes. Thank you. Kirill, a question to you.

[Interpreted] Well there's obviously several options considered. We are trying to game out the position of the Central Bank. We are trying to make a service as comfortable and convenient as possible for the clients. And then our market share is going to remain high in the market, right? There is over 60 million clients using our payments and we appreciate that it is the quality of use and the speed of use allow our clients to meet that need inside our service. We created the service for a reason historically. Right now we are offering all the options to our clients. We think that if our service is the best, the clients will keep using it. Yes. Perhaps we can also add one thing here. We have witnessed that the quick-payment system is actually giving an inflow to Sberbank as opposed to an outflow, that gives us additional turnover as opposed to an outflow, yes? And we also see an important role for the quick-payment system, our quick-payment system, in developing the ecosystem.

[Interpreted] Thank you, Kirill. Andrzej?

And my other question is on pension funds. What exactly needs to be done when it comes to regulations for this industry to properly take off? Are we looking here at different scenarios under which assets under management could grow very fast or not so fast? And who would you say your main competitors are in pension funds and in asset management in general?

[Interpreted] Great. Great question. Thank you very much. Let's start with the pensions funds. But we've got the business of the mandatory pensions insurance and a private pension savings. Right now, in terms of business, we are placing the main focus on developing the private pension savings. I have to stipulate that we did take this product online as well. We are seeing a huge demand for it in Sberbank Online. This is a long-term product, but then the demand must be so pent up that the customers are obviously buying it from a very, very low base. And the growth this year is 38x versus the previous year in terms of the number of customers that bought the private pension savings as a product. As for the mandatory pension savings, that market has frozen. The regulator has long and successfully fought the illicit practices in this market. So pretty much, you cannot really attract any customers from pensions funds. Pension funds really can't buy customers from each other. So we are sort of waiting for a reform hopefully to arrive starting from 2022. We are very much looking forward for a law on a guaranteed pensions plan that will unfreeze this industry and grow this industry and the money might start flowing from the government insurance, pensions insurance to the private pensions insurance. But even if this reform then materializes, there are things to do in pensions per se. There's a whole package of offerings on our part to reform this industry as it relates to the tax deduction, the inheritance of this money, money saved as pensions. Another instruments into which you can invest these pensions fund, extending the investment horizon, increasing the share of equities in the public investment funds strategies. And the corporate pensions funds, we are making a stake on those. We are kind of looking forward to our corporate colleagues of sorts, and we're going to be offering those folks to our colleagues in the digital environment, including debt environment, too. The market is rather concentrated in the non-government pension funds. There's 3 main players: Sberbank, the most retail fund; Gazprom, the most covered fund; VTB, the non-state pensions fund and they are a competitor because in the configuration of products, there's not much variation. Everyone is speaking pretty much about the same large corporate pensions programs and pretty much about the same private individuals.

[Interpreted] Yes. Again, thank you very much. That's an exhaustive answer as it will seem to be. Andrzej, thank you for the question. Let's take a question from the website. Alexander to you.

[Interpreted] RUB 4 billion IRS revenue. How is it different from RUB 7.3 billion revenue from advertising? That's what you put into your presentation. And the second question, I'm going to read that after your answer.

[Interpreted] Yes. Yes. I did give 2 figures. RUB 7.2 billion from advertising. I said that we have 15 branches and 94 franchisee partners. Now RUB 7.2 billion, that's the aggregate revenue from advertising of this entire network, the branches and the franchisee. The management company gets the royalty from the first one. And RUB 4.2 billion, you add the revenue from the advertising plus the royalty from franchisee, the usual market practice, and CPA models and the data sales.

[Interpreted] Great, right. What share of data does 2GIS have versus the Yandex? Is that a problem of -- in a way, in building the navigation and vehicle movement traffic routing?

[Interpreted] Well I'm very thankful to Yandex for the competition. Again, we have worked in parallel for many years and we have been watching each other closely and learning from each other. For many years, we have been focusing on only large metropolitan areas. I used to call -- I call this a raisin bun. Raisins are the best thing. Businesses are mostly concentrated in the cities, it has better advertising. So I think we are better than Yandex in cities. But then the rest of the country sort of remain outside of our business. This situation flipped last year. In October 2019, we started publishing the map for the entire nation. But of course, we are moving consistently step by step and in some spots, we certainly have things to improve in terms of data quality. But if you talk now, metropolitan areas, I think we are better. The rest of the nation as a whole, perhaps Yandex does a better job in some areas. But last -- next year, you heard it in my presentation, we have a big present plan and that we are doing together with Sber. Next year, the job is to reach every village -- every house in every village and we're going to do this.

[Interpreted] Thank you very much. Let's take a video question. The next question comes from Gabor Kemeny, Autonomous Research.

Speaking about your extensive ecosystem, I believe one thing which differentiates Sber is clearly the strong banking background. So can you talk a bit about how you see yourself benefiting from being able to offer a wide range of fintech solutions? And particularly in e-commerce, to what extent are you making use of the buy now, pay later optionality now? And what upside do you see from offering clients to be able to pay for the purchases in installments?

[Interpreted] Kirill, your question for sure.

[Interpreted] Yes. Thanks very much for the question. Actually, this combination of the ecosystem and the development of the bank is very important because POS lending is a very important engine of growth. So as I've said today, we are starting to calculate the credit potential of each individual customer. And it's very important to offer this potential the moment the need arises. And this need does not arise in the bank's branch, it arises when the client needs to purchase something. So the vector of our ecosystem development is very important. Right now, we are working with a lot of partners and we are actually expanding this list, on the one hand. On the other hand, as it was noted yesterday, we are thinking and looking in parallel on developing our own ecosystem and e-commerce and it will be important to support us in that when e-commerce arrives, that would become even simpler for us to work. But it should be noted even today, that a great number of our partners that we work with and our credit portfolio growth evidence that. I mean POS lending, consumer lending, they are largely built on the mechanism of working with our partners. And Anatoly will probably tell you about this relations with the small businesses.

[Interpreted] Anatoly, please.

[Interpreted] Yes. I'd like to add something. It is true that providing a wide range of services of ecosystem to merchants and companies is a major focus for us. I'll start with the fact that we have offered more than 450,000 customers, our online cash desks. Good news is that in October this year, we added a feature of -- an acquiring feature to this cash desk so the merchants and points of sales do not have to have 2 devices like a cash desk and acquiring terminal, you can now combine it in one device. And within the device, there's a myriad of services from Sber that makes a life of a retailer easier, helping them and managing all that. And by creating these solutions, we help our customers, we help them build websites, we have easy solutions for electronic acquiring to provide online services to our customers. And one of the major focuses of our strategy is creating a wide range of tools for the enterprises who do not work in online formats, they don't have their own websites, they cannot -- do not know how to work with large marketplaces. The bank will help them and create the solutions that would move these enterprises to e-com. E-commerce, the large sense of the word. They will get the customers of Sber and they will get access to the general market, to the entire market. We have the tools and we have the plans for that.

[Interpreted] Yes. Thank you for that, Anatoly. Asan, what do you think buy now, pay later story? Will it help e-com and your business?

[Interpreted] I think that this is a great idea because despite the fact that we have a small check from RUB 4,000 to RUB 5,000, that's our average ticket, but we have the data in our ecosystem, we have more than 50 companies and I'm pretty sure that they will leverage that. But even on these small tickets, you can also make some risk assessments and I mean, the person will be able to buy something and pay in 10 months and/or 4, 10 months. I think in Turkey and other countries, these services are pretty popular. In Russia, the household income is not growing or it is actually even decreasing, unfortunately. So we will actually offer this possibility to pay later. When we were small, we couldn't feel the cycle of salary payments because now we see when people receive salaries, we get a spike in sales. So that means that 2 days before the salary payments, we can deliver the service and that will help the customers to buy what they need.

[Interpreted] Thank you, Gabor. Thank your for your question. Our next question, please, Alan Webborn, Societe Generale.

A couple of questions, if I may. Firstly, on insurance. When you look at your target market, how much do you think car insurance will be out of the envelope? Is it going to be the vast majority? Or is it going to be less than 50%? And what are the other areas in terms of insurance, on the basis that it's a nascent market in Russia, do you think the biggest potential is? So that was one thing on insurance. The second question was on this shift from savings deposits towards investments, you're telling us that the -- there's a clearly strong demand and customers that probably have never invested in the savings products which have risk attached to them are now wanting to invest in these products. And I wonder in terms of the customer risk profile, how you manage this because there are lots of examples in other markets where savings become risk-products that things like customer protection, consumer rights suddenly become much more important and if these aren't managed properly, they can cause big reputational risk to the bank. So I wondered how you're managing that shift in clearly what's a very ambitious target in terms of growing the share of wealth management in your business. And then the final question was on SberMarket. If it's been answered, I apologize because we didn't hear the translation. But I just wondered what are the constraints to growth? What's your major constraint? What's your major risk? And also why is your delivery better than competitors? Do you have more staff? Do you have better vehicles? What makes you stand out? That would also be interesting.

[Interpreted] Thank you very much. The first question to Natalya and then Asan, you will continue.

[Interpreted] Two questions actually. Alan, thank you for your great questions. Let's start with insurance. The Sber group was -- has not been represented on the largest risk insurance markets. Car insurance market, voluntary health insurance markets and we have a niche on the corporate insurance market. All these 3 markets have low margins and it was always a dilemma for the group, should we enter them or should we keep the high margins of the business that is very near our core business, the banking services, like the loan insurance, the insurance for the bank cards and so on and so forth? But to become an ecosystem in the large sense of the word, it was kind of weird to see that insurance business that is close to the banking business. Like OSAGO, the obligatory car insurance, it wasn't there so we decided to create a stand-alone company, a full-fledged company. So in terms of the car insurance, the voluntary car insurance and corporate insurance are going to be our major drivers. Maybe by the end of 2021 when we launch everything, they will become a driver for the entire insurance business. As for the margins, those type of insurance that we have now, they're going to generate the main operating income. But as the scale grows, these businesses are going to compete in terms of its significance. And obviously, I mean, I mentioned that in my presentation, since the demand for insurance in Russia is pretty low, it's very important for our brand to be associated with this business. When people think about insurance, they have to think about Sber and making that without being present in the main customer's segments is basically not possible. Otherwise, we'll remain in that niche area. After car insurance maybe it will be followed by the health care. The current situation makes it relevant and we can offer some other programs that add on the obligatory medical insurance and given the needs, this is a very important aspect that we have and security, too. As for the investments, I think you have great questions, by the way. As for the investments, we reiterate that we -- being a bank, being the largest bank, we have to ensure that the first investment experience is absolutely fantastic. These are the people that are committed to the deposits. It's very transparent. Everything done in one click. You have a date at the end of the month, you have the income and you are happy with that. This experience -- we would like to replicate this experience to investments. For those who were going to do this for the first time. So yes, the profiling risk, full disclosure of the information on all fees, all stress tests for various products are going to be in the package. We obviously understand that there are some customers that will only go with the deposits. We'll have the index instruments based on all the licenses that we have in this business. I mean everything is going to be provided so we need to make sure that this is a transition that is of high quality, the transition of the deposits. We are going to work on that including with the regulator. We have a huge agenda that we have to deliver.

[Interpreted] Yes. Thank you. Alan actually is known for his great questions. And now a question to Asan.

[Interpreted] Yes. Thank you for your question, Alan. I'm going to talk in more details, maybe. I have several reasons too for a high growth, at least double-fold growth year-on-year. First reason is the competitive advantage of our model. Second reason is the crystal focus on understanding how to deliver the best product to the market and to win the competition. The third reason is the advantages of ecosystem. As for the first one, we're working with the retailer so we are taking advantage of the benefits that we have accumulated for hundreds of years. People know the retailers. They know what are the prices there. Basically, we are the friend of a retailer in the 21st century. To kind of highlight the benefits and advantages of -- based on that retailer, in online, our growth is not limited because any retailer who wants to work with us is welcome and our goal is larger than that. We don't only want to give the opportunity to the retailer to be on our margin, to be an online assistant for them, but we are helping them off-line, too, and do it varies very actively. 20,000 people in real time go through all places, all supermarkets of Lenta and Auchan, they know what is where on the shelf. And this information is given to them in online format so that they go to the retailer, they put it all in the basket and that helps to increase the sales of the retailers and these indicators are even more important for the retailers. So we try to make sure that the retailers are our unique -- can provide a unique range on our platform. The second advantage is the crystal clear focus. Jeff Bezos was the inspiration for us. He's asked oftentimes what other trends will be relevant for the next 10 years. He says, "Well it's a great question, but the better question is what won't change in the next 10 years?" Because I -- as Jeff Bezos wants to build a company that -- on the things that won't change and these are 3 criteria. The first criterion is the very wide range, everyone wants to get the best for their families, second is the best price for the basket of the products they have and third is the best user experience. So the video that we have recorded reflected that. I can reiterate that for the retailer, that's just what I said. So that's the first factor, we are the partners and our goal is to make sure that all the retailers that people like are available. The second is the best price, so we have 3 areas here, the FMCG. I mean even 1% at the self-development, 1% of our GMV revenue we'll get from FMCG companies because for these companies, it's very important to have a direct communication with the customers. And unlike the TV ad, when you make one message for 20 million people, here, you can make 20 million unique messages for everyone. So this is the mass personalization that we do. This is why it's very important for us to work with this system because we can leverage this data to ensure the unique proposition for the customers. And Instacart, card and others get 5% of the net profit and, as we understand, the margin of 100% because, I mean, the margin is 100% because this is technology, pure and simple. Gabor gave us a great idea for the next 3 years, to make this buy-now-pay-later service. This is how we're going to provide the best price in Russia and the best user experience, of course. We understand that we are the leaders on the market. We provide the widest range. We are very quick, just 2 hours, 30,000 SKUs. Those are huge segment of the instant delivery when you get a smaller range of products, 2,000 SKUs, but it only takes 15, 30 minutes. It's needed when you want to get something quick. So we have to go forward here very actively. And when I talk about user-friendliness, I'm also talking about personalization, which takes a great part in there because, to put into perspective, when a user goes to our website, the range is so huge they don't know where to start with. And people start to get these 23 items in their basket and -- to their cart and it takes like 40 minutes for them. But as we move to SberCloud, all ecosystem data will be within that, the system would recommend automatically what the person needs for their basket and they will also know what their kids' needs or their spouse' needs and the system will do it automatically in the background. So we're going to move very actively here. We understand that we're only starting on our way and there's a huge potential to grow. What are the major risks? Well I would say the major risk here is this habit that people have for thousands of years to go to this brick-and-mortar shops to make orders. So our goal is to -- with our products and resources that we have in the ecosystem, to bring these benefits and more than 500,000 people are using it every month on -- they're using our platform. 500,000 in Sber's scale is not that much, but we will try to drive it up.

[Interpreted] Great. We're going to accelerate a bit. A lot of questions remaining. Let's take the next one from [ Inveson, Rebecca ].

Good day. A very helpful presentations. Thank you very much. I mean, clearly, you've done a lot of work on the tax side. Looking 25 years at financials, I haven't seen a lot of banks or insurance companies do what you are doing. What is important, I think, is to make sure that you keep on reporting and showing how it actually, well, trickles down into numbers because I think one analyst was actually saying, well what is 10 billion transactions per second. How fast is that? I don't know. I can't see how that compares. I have 2 questions today. If I just have listened to the whole story, I sort of think that the targets for ROE and the numbers of customers are actually kind of modest, looking at what you're all doing. I mean 100 million customers, just 2 million growing, 70% ROE, I think that should be much better, but maybe you can give a bit more color on this. And then the second question is on the IT side. Well today -- this week, I had an experience of my own sort of brokerage company in the Netherlands which took -- which needed 48 hours to basically repair their core IT systems to do an update. How long does that take Sber? Do you actually close down systems? Or do you just keep on going? It never closes down, like Google or Amazon, indeed, comparable?

[Interpreted] Thank you very much for the question. Let's start with Alexandra, the targets on ROE.

[Interpreted] In all honesty, I didn't really hear the original question.

[Interpreted] The question was that our targets on ROE and the client numbers in the strategy, on the back of our -- all of our efforts are a bit too modest to partake.

[Interpreted] Yes, perhaps I misheard. Yes. Well the way we see it, our ROE target is rather ambitious in line -- in light of the tendencies that we have been seeing in our main business, the banking business, despite our ambition to expand non-financial services actively and we said that the revenue is going to grow with a CAGR of over 100% every year for 3 years. The main business still is the financial business. And inside the financial business, the main share is the classical banking and our net interest income that we calculate from it. So what we told you was how the net interest margin is going to behave over the 3-year horizon, 3 years out. Since we are in the low-interest rate area and we expect the loose monetary policy to remain for the next 3 years going forward, our expectations are for the net interest margin to go 80 to 100 basis points over the entire strategy period. This situation will change when we rebound to the neutral-interest rate levels and the key rate will rebound to 5.25 or-ish. and our margins are going to start growing on the loans. But right now, we are seeing a decrease in the net interest margin, we have seen it in 2020, and this trend is going to continue. So maintaining the absolute net interest income will be contributed to by the growth of the loan portfolio and as you have seen, we intend to maintain all our key market shares. If you talk about the growth, then the main role will be played by the non-financial services and our growth areas: wealth, brokerage and our payments business. So when we are looking on the whole thing taken together, then ROE of 17% plus is a very ambitious goal. And as we have said -- as we said it yesterday, we like to deliver on all the promises we give to our investors. So we need to be careful about what we promise and weigh up the risks that we see over the horizon, including the regulatory risks and the limitations that we see in macro.

[Interpreted] Thank you, Alexandra. And as for our technologies and the brokerage business, I think Kirill and Anatoly are going to take that.

[Interpreted] Yes. Thank you for the question. Well we are well aware of the fact that our clients don't like to wait. We have understood that long ago. And having the critical infrastructure in payments and acquiring, we understand that this infrastructure, one, must work 24/7; and two, it must be backed up properly if we are doing some updates, the main infrastructure or the stand-in infrastructure should be operating and ensuring a continuous uninterrupted service for our clients. If you talk about the payments by corporates, corporate entities, then we arrived at the speed of 1 second by the end of this year. So the funds are going to be credited next year. That is no longer the formulation to work with. If you transfer with Sber, the funds are going to be credited in 1 second. And there can't be any compromises on the quality. The customers, corporate clients are not prepared to wait and our infrastructure and our platform are 100% ready to sustain any growth, any loads, Black Friday, New Year, you name it. Anything you might think of, we are prepared for it.

[Interpreted] Thank you very much, Kirill. Yes. So I'll just add that the technology and intensity of our bank is very, very high. Just to remind you, in the transaction business, 5,000 -- 6,000 transactions per second are a normal. We've got up to 25,000 transactions on peaks and there are some comfort cushion. We've got a reserve. We're pretty comfortable about it. As for the 100 million clients, yes, a 2 million uptick, not that much, but it's 144 million, including very aged people and infants, newly born infants. There are sort of physiological limitations to growing your client base. We are working on it all right, but I mean it's about the quality, the number of products that we are selling to clients, but then we expand the ecosystem, but it's still about the quality. The more clients we've got and the more they use our products, the better it is for the clients and for our business model. Could I add 2 things on again?

[Interpreted] Yes.

[Interpreted] Colleagues, you need to understand that the moment the product pops up in Sberbank Online, it has to meet all the requirements that payments have to meet. So whether the insurance company wants to transform, that's immaterial. If it wants to sell its policies in Sberbank Online, it must meet the reliability criteria and all the other criteria that Kirill has mentioned. Moreover, we are offering the same to our ecosystem companies, the non-financials. Architecture must be right, resilience must be right. Think about all this when you scale up into a big scale, think about this in advance.

[Interpreted] I do apologize, but I do need to squeeze in a few words myself. I mean misheard the beginning of the question, so I need to make up. Now the guys spoke about the number of transactions and speed, but we asked those questions to ourselves. What do all those speeds mean if you talk about money? How good is this? How bad is this? So what we did was take the third quarter of 2020 and we compared the -- this quarter with the third quarter of 2017, the efficiency of our technological investments, and we just saw that the volume of transactions like loan disbursement, consumer loans online. That grew 12x. 3x was the growth of transactional business, 3x. If you compare quarter-over-quarter our earnings, net operating income grew RUB 100 billion. That's just a top-line figure for you. I appreciate that there's a lot of factors playing into that figure, but without this speed and without these investments in technology, we would not have earned that money. So it's not just abstract figures about the speeds, it's about a very transparent figure on the earnings.

[Interpreted] Yes. Let's move on. Thank you very much. Simon Nellis, Citibank.

I have a question back on SberMarket. Can you just elaborate on how it fits into the plan to get to a top 3 position in e-commerce? My understanding is that you're going to launch some kind of 3P platform. Or is the idea that SberMarket will kind of add verticals and be a key part of that plan? So I'd be interested in knowing how SberMarket fits into the wider e-commerce plan. And then just generally, I'd be interested in, and if you could give us more details on the take rates that you're getting in payments at SberMarket, summer cart and any other businesses that are GMV-driven. And what's the outlook there? And particularly on payments, if -- because I guess you're on both sides of transactions, are you able to introduce a proprietary system and remove third-party rails that could potentially increase your margins?

[Foreign Language]

[Interpreted] Yes. Thank you for the question. Now the goal that the e-commerce is facing in the ecosystem is RUB 500 billion of GMV by 2023. That is essentially a composite goal. That is for individual companies and for the overall e-commerce play that you have brought up that you said we're going to launch in 2022. The SberMarket is going to be a major part of these sales. And as we have said, our mission here is to ensure the leadership in e-groceries, that is essentially another half of all the e-commerce out there. We will certainly be a major part of it. Right now we are already developing the nonfood vertical. That's the answer to your first question. The second one was for the fees. Well I think that is less about the fees than about the goal that we set ourselves to break even by 2023 because we appreciate that besides the growth that we are aiming for, that's x 2 year-over-year, it's important for us to do this on healthy financials. And we need to pay for our own bills and that -- those sources are going to be a 3 and the fees with the retailers are just one source and I would not say that this is the biggest source in terms of the upside we have. For us, the retail is more of -- or a friend, that's a friend primarily. So we don't want to jack up those fees, although we appreciate that as the volumes grow, the fees will, too. And the second source and one of the reasons why that is going to grow, it's not that we're going to grow, it's that we are going to introduce those new technologies in the off-line for the retailers and I told you about one of those solutions. In real time, we're going to boost the sales off-line countrywide for all the retailers. And that's going to affect the bottom line of the retailers. That's just one of the solutions. We've got a very strong integration with METRO and other partner on B2B -- a very strong integration on B2B. And the second source for losing the margins, that's working with FMCG. Again, I've said that we've got over 1% Instacart, Ocado and our colleagues are doing over 5%. And we are just at the beginning of the road, we are expecting a much bigger increase over the 3-year horizon. And the third source, that's operating efficiency. The part of our model is that we are asset-light. We essentially don't have any CapEx element and our main objective here is management and utilization of our collectors, order assemblers and drivers because that's 50% of OpEx. And 2 areas of activity here. One, we will certainly have to increase the order density. Mature sports are actually in their target state or above what we expect in 2023. So their margins or the profitability there is pretty high. Couriers are taking 5, 6 orders in a 2-hour limit. And over the 3 years, that's the way it's going to happen. And then it's the routing technology. And here we are very happy that we have 2GIS. Alexandra, we're going to work very actively together because it's very important for us to maximize utilization and the routing. So we build the routes that increase the number of orders per 1 hour of delivery by a driver. And again, a driver is 50% of our operating cost. And there, the potential, I mean fingers crossed, the potential for optimization is huge there. Yes. Alexandra told us about that. I mean because they've got very high precision, they boost the efficiency of delivery, 30% to 100% courier delivery. Well then, I guess, we're going to break even next year, as early as next year.

[Interpreted] Simon also asked a question about our payment Solutions as SberPay. Kirill?

[Interpreted] Yes. I think that this is a kind of a logical evolution of the answer to this question. So you have a sat nav on one hand, on the other hand you have a payment service because we'll make this invisible, seamless and user-friendly, the process of settlements and payments. We have already talked about SberPay, this is one of the solutions. And basically, with SberID and SberPay, we help markets and other companies of the ecosystem to do several things. First, customers should just enter without any registration e-mails and phones and SMS codes. If it's fully secure, no threat to the personal data of the customers that we have as a bank, obviously, there is a consent from a customer, and then they get this seamless experience and they can pay with SberPay. This is one way. The other way is that all the other payments -- payment methods with any other system or with any other card is possible, too. So this is quick and functional.

[Interpreted] Thank you. Great. Moving on. We're over the limit, but we have to answer all the video questions. Stephan from UBS, please, you have the floor.

Just a couple of questions from my side. Firstly, on the revenue model. To what extent do you think it will move to the subscription model with SberPrime being a key element of your offering? And if you can maybe talk a bit about the SberPrime bundle and how that could evolve. And then secondly, just there are a lot of -- there's a lot of retail here, a lot of components to this model. We get a lot of questions from investors, where the actual revenue from non-financial services will come from? So it can be -- at a high level, if you can provide some color in terms of what sort of businesses that will come from, the consumer ecosystem versus business, but also maybe whether it's very much dependent on the e-commerce business or to what extent is it largely dependent on establishing this e-commerce business and achieving that RUB 500 billion of GMV by FY '23.

[Interpreted] Thank you very much. Start with Kirill and then go to Alexandra.

[Interpreted] Yes. Thank you very much for your question. Yes, prime and subscriptions is a very important element of our business. So the right combination of the ecosystem in the bank is prime, basically. And we plan next year for prime to include banking services. And we have to fine tune the subscription offerings so that the customers are convenient with views in different services like banking services, food delivery services, grocery delivery services and entertainment. We have to find the right mix. Next year, we're going to present the entire range. So I think that will be another source of happiness for our investors. We will have like a youth package, family package. So basically, we're going to build a model that would be in line with the needs of all segments, customer segments on the one side. On the other hand, it has to be profitable and efficient for the bank. So we don't want to subsidize anything for that. We want to increase the number of products that we sell for one customer -- to one customer. At the same time, since our customer is using many products, we decreased the customer acquisition costs for other businesses and this is the key effect from that. So we do believe in this model and we think that this model is going to be very important for the next years.

[Interpreted] As I'd like to remind that as for subscription, we have ambitious goals that we have announced, not less than 10 million MAU by the end of 2023. And obviously, we are going to be -- to monitor very closely cross-sales and the penetration of this products in the customer base because we see great potential there, including in terms of growing the income from our non-financial services. Now moving to the question about revenue. We talked about 100% CAGR. The key part there that will drive that will be e-com. And this RUB 500 billion of GMV is about e-com. The part of this e-commerce, it will be a part of -- e-commerce will be -- consist of SberMarket that Asan talked about and our SberLogistics that we talked about yesterday. So it's going to be a key driver for that. Then if you go to revenues, the entertainment segment, as we have said, is going to grow quicker and quicker, is going to grow twofold by the end of 2023 or even more. We see great potential and advantages here in terms of acquiring and retaining customers on our platform. People like to listen to music and watch movies. So obviously, it will deliver a huge synergetic effect, will be supported by our SberDevices and, obviously, we do expect some signages there, too. If you talk about B2B segment, the cloud business and cybersecurity business are going to put a significant contribution in the growing the revenues from the non-financial services. As part of the strategy, we talked about the education and health. This is one of the top-priority areas for us. In terms of their financial indicators, they're going to be a little bit less significant than the areas that I have talked right now.

[Interpreted] Okay. Thank you so much. Stephan, thank you for your question -- for your questions. And the last question for our session, Mikhail Shlemov from VTB.

[Interpreted] Two questions, if I may. The first question about the insurance business and the forecast that you gave. You talked about RUB 100 billion of revenues for the insurance business. We're talking about insurance premiums only or insurance premiums minus the settlements? And the second question is since you go to the new segment and the profitability of this -- the returns of this business will change, what ratio can we talk about when we talk about this insurance business? The second question is to Anatoly. Anatoly, you said that the corporate customers, small and big alike, are very trustful to Sber's digital products and they're very ready to move to digital products of Sber. And he -- and Anatoly talked about some fantastic figures. When can we see the -- when this potential is going to be unlocked? And Alexandra talked about cybersecurity and cloud, when this potential of the non-financial services to the corporate customers will be unlocked?

[Interpreted] Yes. Thank you. Thank you. Just a few words about the insurance. This is the operating income. That means that it is free of the payments that we're going to make. Combined ratio, we have a 63% combined ratio. That's totally different from the figures of the companies that work on the markets that I've talked about, but they are specializing on that because they're nearing 200, 100 ratio. But the level that we have now is not good as we think because insurance is about settlements and if you ensure you have to settle. And if you want customers to go back to you, you have to pay. So this difference between the premiums and the settlements is showing that. But our combined ratio is going to grow, but on the horizon of 2023, it's not going to go close to the indicators that the large companies that specialize, for instance, in car insurance show.

[Interpreted] Thank you. Thank you very much, Anatoly?

[Interpreted] Yes. Thank you so much for the question about non-financial services. Well, obviously, cloud services and infrastructure services like SaaS and PaaS, they have -- they're very promising. The Russian companies are lagging behind the American competitors. In the U.S., as a benchmark, the cloud infrastructure is used by more than 50% of the companies. In Russia, this figure is around 10%. And obviously, we have a huge potential for multi-fold growth in terms of the number of companies who -- Russian companies who are going to migrate to cloud. As for the cybersecurity, yes, it is very pertinent and it's good that you mentioned that. Cybersecurity is one of the top priorities -- one of the top 3 priorities for all CEOs of Russian companies going from the smallest companies to the largest ones and the protection of data and infrastructure is on top of the agenda for everyone. So we see a sustainable growth of demand for the cybersecurity services from our customers. We have delivered services to large and largest companies, and we delivered the special services and packages for the small businesses. And we see a huge potential for growth here, too. Thank you for your question.

[Interpreted] Thank you so much. That was the last question. We're not saying goodbye to you just yet because we have an Investor Relations team working for you, so you can ask the question to them. They will answer them off-line. So thank you so much for being with us for these 2 days. I hope it was an exciting experience. Please rate this event. Leave us some... [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]