Interview transcript: Sandag Sukhbold, CEO, Savings Bank, Part 1
Sandag Sukhbold, CEO of Savings Bank discusses strengthening the bank’s balance sheet, broadening its business scope, and dealing with stringent bank regulations. July 16, 2012 | Sandag Sukhbold1. Strengthening Savings Bank’s balance sheet Emmanuel Daniel (ED): Tell us about Savings Bank. Sandag Sukhbold (SS): Savings Bank is the result of a merger with Mongol Post Bank in April 2010. Both were small banks, with an asset size of about $100 and $200 million respectively. The loan quality was bad and we made almost $20 million in provision immediately after the merger. We had a staff force of around 1,900 which has grown to 3,000. This is historically a retail bank that mostly collected utility-bill payments from utility companies and distributed pensions and social welfare payments on behalf of the Mongolian government. Post Bank tried to become a corporate commercial bank but had weak management team. The bank made oversized commercial loans that they couldn’t collect on. We faced a number of challenges integrating the two banks. There were two different IT systems and combining them was quite difficult. When I joined in 2010, my experience at Khan Bank was very useful. I learnt that one must first have a clear strategy of the bank’s direction. And in Savings Bank’s case, retail banking was the way to go. This is because the bank has 240 branches in the country, with 30 representative offices in Ulaanbaatar, the capital of Mongolia. The human resources factor is also important. You can only succeed if you have good employees. I tried voicing my strategy for the bank, and possible system and operational changes, but not everyone understood. So I called my former colleagues at Khan Bank and convinced eight of them to join the bank. There are now 500 former Khan Bank managers at Savi... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Deposits and Liabilities, Internet Banking, Mobile Banking, Regulation, Retail Banking, Risk and RegulationDeposits and Liabilities,Internet Banking,Mobile banking,riskregulation,retail,Risk and Regulation, Deposits and Liabilities,Internet Banking,Mobile Banking,Regulation,Retail Banking,Risk and Regulation, Keywords:Mongolia, Sandag Sukhbold, Savings Bank, Mongol Post Bank, Khan Bank, Legacy Loans, EBill, Corporate Banking Mongolia, Sandag Sukhbold, Savings Bank, Mongol Post Bank, Khan Bank, Legacy Loans, eBill, Corporate Banking
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