Alfa-Bank, Tinkoff Bank say state banks monopolize wage accounts

MOSCOW, Jan 21 (PRIME) – Russia should introduce a unified system of wage payments because state-run banks have monopolized wage accounts hurting development of the financial market, Alfa-Bank Deputy CEO Vladimir Senin and Tinkoff Bank CEO Oliver Hughes told the State Duma, parliament’s lower chamber on Monday.

“We should ensure households’ money inflow to the market to develop the financial market,” Senin said.

“Wages are surely the source for the bulk of potential investors… We have to state that there is still ‘wage slavery,’ and the majority of employees are tied to certain ‘wage’ banks, usually state-run banks.”

He added that a law allowing people to change a bank, where they receive salaries entered in force in 2014, but it does not work.

“As a result, there is an utterly monopolized market, where not just households’ money is accumulated, but also information on people’s financial standing, their financial behavior, their preferences and the financial products they buy.”

He said that a joint letter with recommendations for wage projects and requirements for contracts between employers and banks should be issued.

“A unified wage payment system based on a centralized wage register could become a comprehensive solution in freeing from wage slavery,” Senin said.

Hughes suggested creation of a unified settlement center for payroll accounting.

“We should cancel wage projects fully to attain a digital economy we are striving for so that the resources flow to all market players,” he said. “It will help remove excessive bureaucracy. To get a different card, you have to visit a bank, to go to accountants, fill out more papers. People are unwilling to do it.”

Central Bank Chairwoman Elvira Nabiullina said the problem should be solved.

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