Interview with Mrs. B.Erdenedelger, First Deputy CEO of Khan Bank
What is your company’s most significant accomplishment in the past year? What is your company's priority for this year?
Within the framework of the digital strategy, in recent years, we have set the goal of fully digitising banking products and services, and we have been working to create possibilities for customers to access e-banking services as easily as possible. As a result of this work, today we are leading in e-banking services in the banking industry in Mongolia, whereas 99 per cent of all transactions made through Khan Bank are executed online, and 1 per cent are done through branches. Bank services that meet customers' needs have been provided 24/7 online, and since last year, credit services have been transferred to online platforms step by step. In other words, our consumer loans are completely digitised. Now our customers can get salary loans, deposit-secured loans, green loans, and POS device transactions-secured loans online. We have even made it possible for retired customers to get a loan remotely without coming to a branch.
In 2022, Khan Bank not only fully achieved its business goals but also saw an increase in its main financial indicators and was able to advance its important projects to become online banking successfully. It was a productive and favourable year. As of December 31, 2022, the bank's total assets reached MNT 15.0 trillion, loan portfolio MNT 8.0 trillion, and deposits reached MNT 13.3 trillion, which is not only the leading indicator in the industry, but also constitutes one-third of the banking system alone.
Also, we were ranked fourth in Mongolia's "TOP-100 Enterprises" for the fifth time, we were recognized as the best taxpayer and "Best Enterprise of the Year", as well as won major international banking and finance awards. Perhaps it indicates that our bank's reputation, operations and scale are being recognized internationally.
The biggest event for this year is that Khan Bank, which has a history of more than 30 years, has offered its shares to the public and entered the stock market, giving all customers the opportunity to become the owner of the bank and benefit from it.
Moreover, we recently issued USD 60 million in green bonds from Mongolia to the international market for the first time. In the previous years, we had attracted a large amount of funds from the International Finance Corporation, whereas USD 90 million were taken for the purpose of financing green loans. Totally USD 150 million will be used only for the green loan financing. One-third of the investment to be raised within the framework of the IPO is also planned to be spent on green loans. So, by 2025, MNT 500 billion will be issued for green loans.
What is a good experience at your company you would like to share with others?
Employees of our bank have the opportunity to develop their skills, challenge themselves by joining a large team, become competitive specialists, and get promoted. I think that this is a great opportunity given to young people by the employer, as well as a feature that differentiates us from other organizations. In 2022 alone, in duplicated numbers, more than 5,300 employees received professional and leadership skills training, and 49,174 employees participated in online training through KB Academy.
Khan Bank not only integrates the goals of sustainable development into its financial products and services but also adheres to them in its daily operations and pays attention to the policy level. In this direction, one of the many activities implemented in the framework of sustainable activities is the concept of a shared office of Khan Bank. To ensure the work-life balance of its employees and to introduce new trends in labour relations in line with the current situations, Khan Bank approved the regulation on flexible work arrangements of Khan Bank employees, enabling its employees to work flexibly, remotely from home and in mixed conditions, by using from 12 to 20 floors of Khan Bank Tower as a shared office. This regulation has the advantage of bringing certain positive results for the employees, environment and society.
In line with our values of leading sustainable development, Khan Bank has supported and financed energy-efficient and environmentally friendly projects and programs to mitigate climate change. For example, we are financing business activities that reduce inefficient energy consumption by at least 20 per cent with green loans with a monthly interest rate of 1.2-1.3 per cent for up to 60 months. By the end of 2022, the amount of the green loan portfolio reached MNT 105 billion, and Khan Bank alone is making up about 33% of the total green loans of the banking industry in Mongolia. We offer nine types of green loan products to our customers.
In 2023, we set a goal to quadruple the amount of loans we provide in the direction of green development.
Please describe yourself in 5 words.
Defining yourself in five words is a very difficult question. Let me tell you the personalities that I think are good. Optimistic, hardworking, curious, friendly, straightforward.
Please tell us what kind of book/ movie/ drama or any other arts that made the deepest impression on you recently.
I gifted Iwata Matsuo's book “The Minor Differences Between those who eventually succeed” to our bank's mid-level executives.
This book explains in a very simple way how successful people approach work, relationships and thoughts, personality differences, money and time management, and why this leads to success. It was written that simple and easy things can make great changes. I want to recommend this book to people. In addition, the book's author said in his memoirs, "He used to write down his favourite words in a notebook and read them when he was in trouble to gain energy, inspiration, and insight." This was also good advice to implement.
What has been the most significant benefit of being a member of EuroChamber Mongolia?
Khan Bank is a member of international organizations in Mongolia and cooperates closely with them, actively participating in their operations and policy reforms. Since joining EuroChamber Mongolia as a Premium member in February 2022, we have been actively participating in meetings and events and expanding cooperation. As a member of EuroChamber Mongolia, we supported and sponsored some of the events organized by EuroChamber Mongolia last year, and these helped to effectively establish close relations between our bank and EuroChamber Mongolia’s member organizations and expand future cooperation bases.
Not only presenting the bank's strategy to our customers but also introducing the bank’s activities to business partners and sharing our best practices is most important for the bank's long-term growth. In this sense, we are always happy to share our bank's policy, direction and operational experience with EuroChamber Mongolia’s members. This year, we aim to act as a bridge between EuroChamber Mongolia’s members and our customers. I am confident that our cooperation will expand further.