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  1. Analysis
December 9, 2019

Tinkoff celebrates further cards success, launches ‘super-app’

By Douglas Blakey

Tinkoff is a mega Russian cards sector hit. Founded little over a decade ago it ranks second in Russia for credit cards with a 13.2% market share.  As Douglas Blakey reports it is now forging ahead with a growing share of the debit card market and rolling out a super-app

Tinkoff is enjoying a strong fiscal 2019 built on its original success in the Russian credit card sector.

But increasingly, Tinkoff represents considerably more than just a major player in credit cards.

Ongoing credit cards market share gains takes its market share to 13.2%.

However Tinkoff’s non-credit business lines continue to deliver robust performance thanks to customer base growth. They now represent 32% of the group’s total revenue in the first nine months of 2019.

This all helped Tinkoff to report third quarter total revenue up by 50% y-o-y to RUB43.6bn. A major factor is a whopping 55% rise in net interest income to RUB22.9bn. Meantime, fee and commission income is up by 33% to RUB9.4bn.

Moreover, Tinkoff Insurance more than doubled its income y-o-y to RUB 4.3 bn (3Q’18: RUB 2.0 bn).

And now there is evidence of Tinkoff’ success in targeting the debit card sector.

At the end of the third quarter, Tinkoff had over 6.3 million current account customers with a total balance of RUB169.2bn across all accounts. Notably, the number of retail banking current accounts is up by 39% for the year to date.

Tinkoff: 10 million Mastercards

Among third quarter highlights was the landmark achieved in September as Tinkoff issued its ten millionth Mastercard.

In addition, Tinkoff has over 514,000 SME customers with RUB45.3bn in total on their current accounts.

Other highlights include the number of customers in Tinkoff Investments increasing by 2.4x. The overall aim is to increase the number of customers turning to Tinkoff for a greater share of their lifestyle needs.

And to that end, Tinkoff is now launching what it dubs its super-app.

Tinkoff super-app

Tinkoff says that the app meets almost any financial, leisure or lifestyle need its users may have. And it claims the Tinkoff super-app represents a European first for any financial services company.

The Tinkoff super-app combines all the components of the Tinkoff ecosystem. It adds more capacity for its 10 million customers. Tinkoff says that it remains on target to grow customer numbers to over 20 million by 2023.

The Tinkoff super-app is already available in beta for some users. The app will be released shortly in a version 5.0 for iOS. An Android version will follow.

Tinkoff super-app features:

  • Digital banking, including all its financial products;
  • Tinkoff lifestyle services (movies, concerts, theatres, restaurants, travel, shopping, sporting events, etc.);
  • Seamless integration with all Tinkoff ecosystem components and services. These include Investments, Mobile, Business and Insurance (some will continue as separate apps) accessed using an existing single Tinkoff ID;
  • Marketplace for products and services provided by Tinkoff partners to cater to users’ needs;
  • Maximum personalisation of recommendations and services and anticipation of a customer’s financial needs;
  • End-to-end integration with the Oleg voice assistant, and
  • Super-app development based on AI and machine learning as part of Tinkoff’s AI Finance strategy.

Marketplace

The Tinkoff super-app’s key feature is its own marketplace. External partners can connect to the marketplace (via open API). This uses the “app-in-app” model and offers targeted products and services within the Tinkoff app.

Other features coming soon include:

  • Online retail experiences with the ability to order directly from the app (food, books, clothing and footwear, home appliances);
  • Leisure and things to do in the city (urban quests, excursions, lectures, exhibitions, parties, master classes);
  • Fitness and wellness;
  • Food and flower delivery;
  • Car products and services;
  • Products and services for children;
  • Transport, logistics, and car sharing, and
  • Cleaning services

Tinkoff super-app: incorporating health and beauty

The initial version of the new app will include two new services – health and beauty. Tinkoff customers will be able to use the app to make a doctor’s appointment in private and public clinics. In addition, they can sign up for a beauty salon visit.

Health and beauty services will be provided via the marketplace by our partners ‘NaPopravku’ and ‘Yclients’. Their mini apps have been integrated into Tinkoff super-app’s marketplace using OpenAPI on a white-label basis.

Tinkoff already has in place agreements with major players in each industry. Consequently, customers will access a myriad of services at a discount and with cashback deals.

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