Hungary-based OTP Bank Nyrt. decided to discontinue its digital Touch Bank project in Russia, Kommersant reported May 16.
Touch Bank will no longer attract new clients and will be integrated with the Hungarian lender's Russian unit, JSC OTP Bank, with the process to be completed by the end of 2019. The move stems from the need to reduce operating costs, eliminate duplication of processes and accelerate digitization and development of remote service channels, OTP Bank Russia was cited as saying.
Analysts cited by the newspaper believe, however, that the decision to wind down the Touch Bank project was taken because of the project's unprofitability and strong competition in the financial technology market.
