Retail Banking

The Bank has traditionally been the principal retail bank in the country. The Bank's management has set an objective of maintaining this status by constantly improving the range and quality of services offered to private individuals. In order to improve cost effectiveness, the Bank is actively promoting and developing "self-service" banking products.

The Bank views debit cards and payment terminals as an attractive way of generating fee income, while at the same time reducing the Bank's own costs related to the transaction and cash processing. The Bank is a market leader with respect to bank card products: as at 30th June, 1997, the Bank had in excess of 299,600 card holders (compared to 45,000 at the beginning of 1996); special products for children and young people have been developed with different pricing and marketing support. As at 30th June, 1997, the Bank had 87 ATMs covering all major cities in Estonia, compared to 31 ATM's at the beginning of 1996. The Bank has issued Eurocard/Mastercard ("EC/MC") payment cards to 3,920 customers by the end of July 1997.

The Bank has successfully introduced electronic banking: Hoiupank has introduced its electronic banking software "Telepank". Further, in June 1996, a new service was introduced targeted to customers with an access to the Internet. "PangaNet" is a product which allows clients to make domestic payments and check the balance and transaction history of their accounts over an Internet connection. As of 5th August, 1997, PangaNet had 2,481 users.

The Bank is constantly expanding the range of payment services and time deposit products, aiming to offer more flexibility and a broader range of services than any of its competitors.

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