1. Team: Heroes of Marketing and Management (GSOM, St. Petersburg) Case: Role of the Bank of Moscow in International Financial Centre Development

2. Develop strategy for the Bank of Moscow, contributing establishing of Moscow as IFC. The availability of skilled personnel The operational costs Access to customers Sound and progressive financial services Development of the human capital Increase of the citizen financial activity Factors Mission 12 factors that define Financial Centers ratings (acc. to GFCI ). 3 out of 12 can be directly or indirectly influenced by Bank of Moscow strategy. (appendix 1) Objects Principles Opportunities: becoming a hub for growing CIS economies and in future IFC. Work on weaknesses: increase level of individual investments. Avoid threats: keep up with global standards. Changes required to establish Moscow as a world-class financial services center (non-government's tasks). Based on SWOT analysis of Moscow as IFC (appendix 2). Usage of internationally accepted financial standards Identification of target directions

3. Factors of IFC development Bank of Moscow interests Subjects of our analysis According to SWOT analysis of the Bank of Moscow (appendix 3) we can make the following conclusions: 1) By acting as a leader in increasing overall level of individual financial literacy and activity, the Bank of Moscow has great opportunities of acquiring new clients. 2) Fast growth of B2C segment requires fast development of Human Capital that can contribute not only to customer satisfaction, but to the ICF development. 3) Taking into account a certain decrease in financial activity after crisis and negative rating's agencies forecasts, we assume that it is necessary to focus our strategy on limited number of the most attractive segments that have the best prospects. Retail banking market penetration level, % Implications for the Bank of Moscow

5. Engineers of bank products and technologies Life style management: simplification of the customer's life in the ways of booking and payment for flights and other expenses related to travel, translation service at any world language, etc. Youth development: professional financial training support, case competitions, campus events. Middle-aged education: on-the-job training programs. Global financial literacy program. Retail sales offices Improve the customer focus. Private Banking Shifting customers to standardized products: e.g. offering mutual funds investments in forms of “ready-made packages” aimed at making this process more easy and transparent for customers with low or medium financial literacy. Social networks, virtual universes and business games as new potential contact points. New communication tools attract the interest of young people and active middle-aged. Advertisement of "simple" products, like "simple" loans: guarantees a two days response to housing credit application and two weeks regarding loan offers. Training programs for consultants aimed on further development of customer-friendly service skills. Private wealth management development for customers, who haven't enough money to become full-fledged "VIP"-client, but still have much more money than average customer. Transparency, simplicity of products will increase the understanding and willingness to use banking products for customer. Education programs will augment the level of financial activity because of increased citizens' financial literacy. Life style management will increase attractiveness of the Bank of Moscow for "vip"-clients as well as increase loyalty of the Bank's current customers. Further development of cross-sell mechanism diversified according to gender and social differences: e.g. offer a bonus in social networks for students and bonuses in the shops and beauty salons for women. Cross-sell mechanism stimulates higher banking products usage activity among customers. PWM will increase level of investments from new customers. Proposed directions of activities

6. Overall estimated investment in Moscow for the Bank of Moscow: 224,9 mln. rur. Overall estimated investment in Moscow for the Bank of Moscow: 599,6 mln rur. Projected overall estimated investment growth based on result of campaigns: 187,4% - youth development 182,9% - middle-aged education 190,6% - financial literacy program current situation future situation (2016) Also, as a result of these campaigns we will have great growth of clients from target audience. Currently, Moscow is ranked 68th among the world's financial centers. Increase of the competitiveness rating of the Moscow as an international financial center. Low level of citizen financial activity. Low individual investments growth rate. Market and banking supervision does not keep up with requirements. data acquired from Financial Model

8. Appendix 1 Success Factors (for major IFC) Tangible Intangible Competitiveness factors (acc. To GFCI) External Factors Financial Sector Factors Well developed, domestic economy easily accessible to international companies Appropriate professional & independent regulation Predictable legal system, easily enforced A well developed, stable – and privately owned – banking sector A pro-business government who understand the development opportunities in finance Transparent and liquid liberalized financial markets providing broad issuer and investor opportunities both domestically and overseas Competitive corporate and personal tax regime Critical mass in asset management with strong supply of investment funds Efficient public infrastructure, such as transport, education and healthcare Strong availability of professional support services External Factors Financial Sector Factors A business environment marked by fairness and adherence to the legal framework Ability to work in international environment General acceptance of a free-market philosophy Competitive mindset disposed towards product and service innovation Openness to foreign cultures and people – the “cosmopolitan factor” A financially skilled work-force Educated work-force with English language skills Light touch professional & independent regulation Attractiveness of city life to expatriates Reputation and brand-name of financial sector players Competitiveness Factors Rank The availability of skilled personnel 1 The regulatory environment 2 Access to international financial markets 3 The availability of business infrastructure 4 Access to customers 5 A fair and just business environment 6 Government responsiveness 7 The corporate tax regime 8 Operational costs 9 Access to suppliers of professional services 10 Quality of life 11 Culture & language 12 Quality / availability of commercial property 13 The personal tax regime 14

9. Appendix 2 Strengths Opportunities Threats Weaknesses SWOT analysis: Moscow as IFC

10. Appendix 3 Strengths Opportunities Threats Weaknesses SWOT analysis: the Bank of Moscow

11. Appendix 4 Effect of campaigns is analyzed based on the overall estimated investment (OEI) in Moscow Percentage representation Projected effects of campaigns Financial Model All banks the Bank of Moscow Conducted measures OEI, 2011 (RUB mln) OEI, 2012 (RUB mln) OEI, 2016 (RUB mln) OEI, 2011 (RUB mln) OEI, 2012 (RUB mln) OEI, 2016 (RUB mln) No measures 2654,8 5309,5 7079,4 224,9 449,7 599,6 Youth development - 5506,6 8392,9 - 512,6 1123,6 Middle-aged education - 5502,8 8367,7 - 513,7 1097,0 Financial literacy program - 6273,4 13505,0 - 531,2 1143,0 All measures combined - 6735,0 18485,9 - 684,0 3137,1 All banks the Bank of Moscow OEI, 2012 (%) OEI, 2016 (%) OEI, 2012 (%) OEI, 2016 (%) 100,0 100,0 100,0 100,0 103,7 118,6 114,0 187,4 103,6 118,2 114,2 182,9 118,2 190,8 118,1 190,6 126,8 261,1 152,1 523,2 Campaign name Target groups Effect Value Youth development Young Leaders, Rational Youth Annual increase of group share (%) 1 Annual increase of BM clients (%) 2 Middle-aged education Affluent middle-aged, Active middle-aged Annual increase of group share (%) 1 Annual increase of BM clients (%) 1,5 Financial literacy program All target groups Annual increase of investment rate (%) 0,5