Tinkoff Bank, a leading digital bank in Russia, has recently made headlines with several significant events.
From being removed from the App Store to experiencing a drop in net profit, to the suspension of euro trading, Tinkoff Bank has been facing challenges.
Below, we will explore each of these events and their potential impact on Tinkoff Bank’s future.
Tinkoff Banking App Removed from App Store
On March 2, 2023, Tinkoff Bank’s mobile banking app was removed from the App Store.
Apple cited violations of its App Store guidelines, which require apps to offer in-app purchases through Apple’s payment system. Tinkoff Bank had been offering users the option to pay for services through alternative payment systems.
The removal of the app from the App Store is a significant setback for Tinkoff Bank.
The bank’s mobile app had been a crucial part of its digital strategy, providing customers with a convenient way to access their accounts and services, as well as being instrumental in driving customer acquisition and retention.
Tinkoff Bank Sees 2022 Net Profit Drop
On March 15, 2023, Tinkoff Bank’s owner announced that the bank’s net profit is expected to drop by 67% in 2022. The bank attributes the decline to the ongoing economic and political instability in Russia, as well as the COVID-19 pandemic.
The projected drop in net profit is a significant concern for Tinkoff Bank.
It suggests that the bank’s revenue streams are under significant pressure, which could impact its ability to invest in new products and services, as well as its ability to compete with other digital banks.
Tinkoff Bank Suspends Trading in Euros
On February 27, 2023, Tinkoff Bank announced that it was suspending trading in euros due to “unprecedented market conditions.” The bank did not provide any further details on what these conditions were but stated that it was taking steps to manage its exposure to the euro.
The suspension of euro trading is another significant event for Tinkoff Bank. It suggests that the bank’s risk management strategies may not have been effective in protecting it from market volatility.
Additionally, it also raises questions about the bank’s ability to manage its exposure to other currencies and financial instruments.
Tinkoff Bank’s recent events, from the removal of its mobile app from the App Store to the suspension of euro trading and the projected drop in net profit, are significant challenges for the bank.
While it is too early to predict the long-term impact of these events on the bank’s future, they highlight the challenges that digital banks face in an increasingly competitive and uncertain market.