Oschadbank in Ukraine: one of the leaders of the national banking industry
"Oschadbank" — is one of the largest in Ukraine; its short name comes from the word "oshchadnyi" (ukr. — "savings") bank.
The founder and owner of the bank is the state (represented by the government of Ukraine). "Oschad" ranks first in the number of branches in the country - more than 1000. Its branches are even in small villages.
Assets of "Oschadbank"
As of 2023, the bank has:
- 2790 ATMs,
- 1197 branches,
- 2555 payment terminals,
- 60,000 point-of-sale terminals.
11.5 million plastic cards have been issued, of which more than half are active. Internet applications have been developed for clients — the popular "Oschad 24/7" and the more modern "Mobile Oschad".
History of the bank
"Oschadbank" has been operating since 1991; it was in this year that the National Bank of Ukraine registered it as an independent banking institution. In 1999, it became an open joint-stock company abbreviated "Oschadbank".
In 2014, Oschadbank suffered losses of UAH 8.5 billion, and in 2015, they already totalled UAH 12.2 billion. As claimed by the bank's management, this was due to the separation of Crimea from Ukraine. In 2018, an international arbitration court in Paris awarded more than $1 billion in compensation in favour of Oschadbank. Three years later, the Court of Appeal in France overturned the decision.
Features of the bank
Since "Oschadbank" belongs to the state, it has several privileges:
- guarantee of 100% return of deposits to individuals,
- participation in social payments,
- servicing of state enterprises.
"Oschadbank" is the leader in Ukraine in preferential mortgage lending (state programme). It is a key player in the SME segment under the "Affordable Loans" programme and also finances large corporations and agricultural enterprises.
Premium services of "Oschadbank"
The bank offers Oschadbank Premium Banking for exclusive clients who opened a deposit in the amount of UAH 1 million or more:
- premium manager services,
- service in the premium zones of the bank,
- priority service in all branches,
- dedicated round-the-clock line of the contact centre,
- premium card services.
Ratings and indicators of Oschadbank
In Ukraine, the bank is ranked 2nd out of 60 banks by the National Bank of Ukraine. In 2023, Fitch Ratings upgraded the stability rating of Oschadbank from cc to cc-. In terms of creditworthiness from Fitch Ratings, the bank is rated AA, with a stable outlook. Moody's rating is Caa3.
Can a non-resident of Ukraine open an account with Oshchadbank?
Previously, non-residents — legal entities could only open an investment account. Since 2019, the account can be any, including a deposit account, in hryvnias, euros and dollars.
Legal entities and individuals can open an account, as well as by power of attorney; the number of accounts is not limited.
All services of the bank are available for foreigners:
- cash withdrawal in ATMs (in hryvnia);
- cash withdrawal in the card currency (dollars, euros) at branches;
- transfer of money to the account from foreign accounts;
- transfer of funds to the Ukrainian and non-resident accounts under export and import contracts and many others.
Advantages and disadvantages of the bank
The advantages of the bank are:
- Reliability of the state-owned bank;
- 100% guarantee of deposits;
- Extensive network of branches;
- Special conditions for pensioners;
- State loan programmes;
- Support for small business;
- Deposits with good interest rates.
The minuses of the bank include:
- Low level of service;
- Difficulty in obtaining a loan.
