Russia’s Sovcombank breaks new ground with equity release loans and ESG

Consumer finance growth in Russia is expected to slow after the introduction of central bank curbs on over-indebtedness, forcing its leading banks to look for new ways to target retail borrowers.

At Sovcombank, one of the country’s largest private sector lenders, chief executive Dmitry Gusev sees opportunities in offering equity release loans to its core low- to middle-income customer base.

“The big Russian retail players – the state-controlled banks and Alfa-Bank – don’t bother with this product, because it’s relatively new and they’re busy enough with classical mortgages,” he says.