FinTech in Russia: how has this modified because the “particular navy operation”?

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As I posted evaluation of the state of economic innovation in Ukraine the opposite day,  I assumed it solely truthful to get the opposite aspect of the story: what’s taking place in Russia?

I’ve many pals in each international locations. Specifically Daniel Gusev, Managing Accomplice & Founder at Gauss Ventures, has been Russia contact for a few years, so I reached out and requested him: what’s taking place in Russia? Right here is his abstract:


The scenario in Russia

This evaluation is completed solely to, as objectively as potential, overview repercussions from battle and imposed sanctions on Russian economic system, funds, fintech.

Russian market is resilient to face the isolation in medium time period: cracks will likely be amply oozed with liquidity from commodity and forest / metals export, now locked by sanctions: whether or not the amount of cash compensates the standard of products required by a sizeable market is a special matter, the place opinions diverge. Seeing previous the horizon is anybody’s guess.

“Cancelling Russia” is difficult, contemplating completely rational previous choices to combine its gasoline provides magnified by public concern of Fukushima catastrophe, titan to help the increase in Airbus aircraft constructing, uncommon metals for laptop business – all that needs to be taken into consideration of a continuing battle of “headless coronary heart vs heartless head”.



    1. Russia will stay a sizeable shopper market of 80 million economically engaged folks out of 146 million: it’s the trimming of SKU (inventory) because of FX shocks, unpredictability of logistics and ethical stand of western suppliers that may impression each the “what” and the “how” of consumption.
    2. Nation experiences deficit of small margin / excessive quantity items like packaging, paper, carton, chemical substances and so on. – reliant on the identical international chain footprint it will now need to recreate with inferior alternate options.
    3. Somewhat than undergo throughout the large board of SKUs, importers, marketplaces, retailers will trim the obtainable choice. It additionally suffers from exodus of established western manufacturers, however this will likely be extra acknowledged by metropolitan space shoppers, than blue collar employees.
    4. Logistical networks will likely be refocused on items which might be a certain wager whereas saving advertising and marketing price range to advertise these – not a range megapolis shoppers used to. Additionally, no extra big-spend market share acquisition budgets from huge manufacturers.
    5. NSPK (Nationwide Fee Card System) will carry the flag of supporting native cost swap – however card significance when it comes to funds will cede earlier than quicker funds built-in to help in-app cost and QR funds for offline. Retailers will likely be required to just accept QR (reducing the price of acceptance). A number of competing requirements may seem – promoted by huge acquirers.
    6. Cashless drive will undergo a success, additionally because of reducing of interchange that will result in decrease cash-back. Advertising and marketing budgets from OEMs can even disappear, time will likely be required to construct native champions whom customers would belief.
    7. Retailers will lead the evolution of funds, mirroring Chinese language / SEA mannequin, the place banks turn into plumbing: a number of who keep prowess in buying will put money into checkout experiences in addition to improved QR funds – as Android smartphones are extraordinarily widespread.
    8. Banks are investing to convey ATM upkeep in-house and hoard instruments and elements, the place most models are fairly refined with recycling models and require consideration.
    9. The state, involved concerning the money price, promotes improvement of CBDC and stablecoins / digital money analogs to alleviate the issue.
    10. As stated earlier, all of it involves means to retain expertise in a position to execute the administration adjustment and implement technological applications that the nation relied for a few years on worldwide companions – in addition to capital for that.
    11. Right here, western sanctions present a (unintended) silver lining: whereas morally castigating Russia to oblivion, sanctions present the nation with capital – successfully fixing the capital flight drawback – in addition to securing skilled center class assist.
    12. These, who out of concern of repercussion for voicing their disagreement, tried to go away, might need to return, not in a position to open a overseas checking account, pay for means to maintain themselves and their households. Managerial professionals will return to determine a brand new “social contract”.


Daniel Gusev majored in Historical past and Worldwide Relations @ Moscow State College and constructed his profession in funds, contributing to a giant variety of breakthrough improvements worldwide since 2009. His extra private evaluation of the unfolded occasions may be discovered right here.

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