Business plan for opening a bank
Reviews of the bank's business plan ()
The main thing about the bank's business plan for the year
Features of the bank organization
The banking services sector in Russia is characterized by stable development, and a relatively favorable outlook in terms of demand for the services of financial and credit institutions allows businessmen who plan to invest their money in creating their own bank to count on the best. The disadvantages include the significant dependence of this sector on government regulation.
According to expert analysis, there are 5 functional groups in Russia that you can focus on when opening a bank: credit, retail, market, settlement banks, as well as banks, the purpose of which is interbank relations. The coefficient of business activity depends, as a rule, depends on many factors, and membership in any of these groups is not the main indicator.
Experience shows that entrepreneurs planning to open their own bank find it most profitable to create a universal credit and financial organization. If you can offer your clients a maximum of services, ranging from the usual opening of a bank account to mortgage lending on very favorable terms, then thereby increase the chances of success. But for this you will have to make a titanic effort and invest huge sums in business development.
Making money on other people's capital - such an opportunity may seem very attractive if you do not know how difficult it is to open a business in this area. And there is no need to talk about fabulous income in this sector of the market. During the 90s, the profitability of banks was incredible, reaching the level of 200-300%. To date, the profitability of financial institutions does not exceed 15-20% on average. If desired, this indicator, of course, can be increased, but this requires knowledge that will allow organizing competent management, as well as the introduction of modern technologies.
According to banking legislation, a businessman who wants to invest in the creation of a bank must obtain several licenses - for banking operations, separately - for carrying out operations with precious metals, as well as for carrying out depository activities of the Federal Commission for the Securities Market papers. In addition, you will need a few more important documents that will give you the right to engage in this activity. Only in this case, your customers will legally be able to open a savings account with a bank, including bank accounts with a password, and open a bank card.
When compiling a list of services that will be provided in your bank, include in it opening a bank account for individuals via the Internet, as well as opening a bank account without commission - this will help you attract new customers. Banking schemes for working with payment terminals have recently enjoyed success, which is also desirable to take into account. The recommendations of experienced professionals who are concentrated in a competent example of a business plan for opening a bank with ready-made calculations will be absolutely useful in such an important matter. Use them and your business will grow with confidence.
Bank opening: problems and prospects
The financial sphere is different from other areas of activity, and in order to succeed there, you need to have a certain store of knowledge. But even this will not be enough for the creation of the bank's business plan and its successful implementation. To start your own lending institution, you need sufficient funds to invest. However, nothing is impossible, and if you set a goal, you can achieve it. A commercial bank is an ongoing project, but people with experience in this area should be involved in it. The financial direction is considered one of the most promising and profitable. It should be noted that a huge number of budgetary institutions are currently operating, so the competition in this segment is quite tough.
According to statistics, financing a business project of a commercial bank is considered one of the most profitable. It is necessary to find a suitable room, draw up the correct structure, calculate all costs in advance. In other words, draw up a competent business plan for opening a bank.
Before starting a project, you need to analyze the state of the market in your region. Marketing research is an integral part of any business. Perhaps there are many credit institutions in the required territory, then your business may turn out to be unprofitable. In this case, you should come up with a specialization that would distinguish your bank from the rest. Of course, it will be quite difficult to do this, but if it works out, the result will not be long in coming. The banking business has just been developing lately, and the state provides this business with quite significant support.
Choice of direction
The business plan of a commercial bank should be based on your activities. The existing practice shows that large credit organizations are engaged in several areas at once, and they are excellent at it. Here we are talking about business giants: Sberbank, VTB 24, etc. The new lending institution should be different from the rest, specializing in one thing.
Thus, small and medium-sized banks choose a direction, for example, issuing loans at low interest rates, and promote this offer on the market. You can focus on servicing corporate clients, legal entities, small businesses, etc. The main thing is the quality of work, because a client chooses between a huge number of different organizations, and in order for him to be served with you, you need to work at the highest level.
The bank's business plan must be carefully thought out and contain development directions in order of their priority. This will greatly facilitate further activities.
The previous question indicated the need to select a priority area of work. In order not to be mistaken at this stage, you need to carefully analyze the marketing environment, make a forecast for the next five years and draw up strategic goals. As an example of a bank's business plan, one can cite the directions for analyzing prospects:
It is necessary to understand what the population is most interested in at a particular moment: deposits, loans, the need to open branches, the ability to perform any operations through a mobile application and a computer. And starting from the demanded position, look for potential customers, contact them, offer their services, guarantee privileges.
The importance of strategic planning
What is a business plan
A business plan is a description of an activity that will bring profit in the future. Such a document fully characterizes the structure of the company, its composition, activities, and also describes directly the product that is launched on the market.
Financial and analytical market analysis will be required. The organization must identify all possible risks, and also calculate the profitability of activities. A business plan includes various aspects, from a marketing plan to a production plan.
For a bank loan, it is not so much the structure of the business plan itself that is important, but the content itself and the main idea that should bring profit. Nevertheless, it should be very detailed, as specialists will assess the financing risks and, possibly, defend the transaction on the credit committee.
This is where detailed summaries and numbers come in handy, since a banking company relies on statistics and calculations to make loans. It will be useful to familiarize yourself with the "Methodological recommendations for evaluating the effectiveness of investment projects" developed by the Ministry of Finance before drawing up an application.
How to draw up a business plan for a loan
The preparation of such a document should be approached with all responsibility. One of the options is to develop it yourself; on the Internet there are templates for describing a business plan, according to which other users compiled a document.
The alternative is to contact a specialized company, which will advise in detail on how to draw up your own business plan or take on its own design.
Work on the development of the document entirely at the expense of the consulting organization will cost from 100,000 rubles. But the amount is approximate, since it depends on the type of organization and the region. Perhaps in local offices you can find cheaper options.
If the component is aimed at saving money, or does not trust third-party companies, then it will be necessary to fully study this issue, and we will make certain recommendations in this article.
Content of the business plan
Banking structures are quite complex, but at the same time they represent a promising and highly profitable idea. Speaking about how to open your own bank, it should be noted that an entrepreneur must impose a baggage of knowledge in the chosen field and have a large start-up capital. Investments in the business will require large, so the best option is to attract investors to the business. You can also greatly simplify your work if you buy a ready-made bank, rather than open it from scratch. This approach will reduce the time spent on confirming all licenses, training and hiring personnel and further settlements. In general, a banking institution is a specific direction that is created by already experienced entrepreneurs and usually does not act as the main business.
Why is it worth opening your own bank, what good is it in this area?
A bank is a financial institution that provides material support to citizens - loans, accepting various payments, issuing deposits, and so on.
Many entrepreneurs set themselves the goal of opening a bank, all because such an enterprise is not only commercially profitable, but also allows you to perform various operations for their own needs. Providing certain knowledge and experience, as well as having a good start-up capital, starting a business will not be a problem.
It is important to understand that it is very difficult to enter this area, but the efforts are paid off by the profit and a number of functions that the bank gives to its owner. To open, you will need capital in the amount of 100 million rubles, as well as the presence of good connections.
That is why most banks are held by experienced businessmen who have other projects that give good income.
Existing Bank Formats
One of the items on the list that you need to open a bank is the choice of format. The banking sector is constantly expanding, accepting new entrepreneurs into its ranks. There are various directions:
- Market Bank - all their activities are mainly aimed at maintaining relationships between banks. A large percentage of their assets consist of money received from other organizations. The direction of their activity is speculative finance, for example, securities.
- Credit institution - most of their assets are borrowed money. Their activity is to provide loans to the population and businesses.
- Settlement bank - mainly engaged in customer service. They may not have a large customer base, just one big customer is enough.
- The retail organization is the largest banking industry. It is a universal organization, a collection of all forms of banking. Provide various services to the public and business.
How long does the initial investment pay off?
The payback period, in most cases, is influenced by the economic situation in the country and in each individual city. Even the most organized enterprise pays off in no less than 5-10 years of stable work.
First of all, for the qualified writing of a business plan, as well as for the successful ordering of this work from specialists, you need
Remember the goal
I will list the most common goals of writing business plans and the resulting requirements for the result.
- Getting a loan from the bank
As a rule, the bank prefers more substantial guarantees of loan repayment with interest than the most optimistic business plans. If you have good material support, a business plan is a must, but not a decisive attachment to it. The main requirement for such a business plan is compliance with the structure and formats of the bank, and the main indicator of the financial part is cash flow. If the bank makes a positive decision, it is this indicator that will be put under control, therefore, its planning should be taken as carefully as possible.
- Attracting Investor
Unlike a bank, an investor is ready to share the risks of future business with you, but for this he will want to receive a significant part of the profit if successful. You can motivate an investor to risk their hard-earned money by demonstrating your best practices and presenting a convincing business plan. So you have to spend time describing your intangible assets (patents, certificates, contracts with counterparties, client bases, etc.), market research, justification of income and expenses, risk analysis, etc. etc. Don't forget about the emotional side of persuasion, too, and prepare a colorful presentation and summary based on a boring 100-page business plan.
- Receiving a commercial grant
Usually, competitions for grants are strictly formalized and the fulfillment of the requirements for a business plan is a necessary, but not sufficient condition for winning. Of course, it will be better if the business plan you wrote is free from marketing and financial flaws. And yet, only an interesting idea that impressed the experts and corresponding to the industry of the grant founder can guarantee victory in the competition.
- Getting government support
Grants for business development are given not only by market leaders, but also by government authorities. In this case, you also need to meet the requirements for the structure of the business plan and format, but no brilliant idea will help you. It is more important to “be in trend”, that is, correspond to the sectoral priorities of the region in the current year and “be able to work” with public servants, which has nothing to do with the art of business planning.
Requirements for business plans for receiving grants "for the development of small business" are fortunately not high. But if your company claims a place in the Special Economic Zone or, moreover, budget financing, the business plan will have to be written in the format approved by the Ministry of Economic Development and Trade (now the Ministry of Economic Development). Find this format on the Internet and, perhaps, the desire to write a business plan yourself will disappear.