1. Freakonomists The role of the Bank of Moscow in International Financial Centre creation: Building the strategy 1st round Case Changellenge >> Cup Russia 2011 Anton Filonov KirillEfimov Olga Prosvirina AndreyOrlov

2. How long will it take for IFC to develop? In leading IFCs it took years 2011 2016 2026 2059 Year Client age 17 23 3369 (life expectancy in Russia) - IFC creation completion - Income peak of target audience Target audience What are the strong points of the Bank of Moscow? Private investors deposits take material part of the BM's liabilities. Equities growth seems to be significant.

3. What will increase in the market participants’ assets? 2011 2016 2026 2059 (1) With high probability we expect the private investors assets to be steadily increasing in the middle-run. The Bank of Moscow needs to contribute to this. The following market participants are considered as investors (agents who place somewhere their own saved money) 2011 2016 2026 2059 (2) With high probability we expect pension capital fund and mutual funds activity to be steadily increasing in the middle-run. The Bank of Moscow should consider the possibility of horizontal integration to be able to provide these kinds of services. The following market participants are considered as institutions which accumulate and invest saved money

4. How will IFC creation influence the financial market? In compliance with Freakonomists team investigation we argue that the following market participants will increase their activity in the market: from (1) table from (2) table Mutual funds Private investors Foreign investors vi a vi a financial education, attractive assets supply What are the foundations of the Strategy? As the result, we found out two items which satisfy the following criteria: It is one of the strong points of the Bank of Moscow. It will increase in the middle-run along with overall economic growth. Its activity will be stimulated by IFC creation. private investors’ savings mutual funds We suggest the Strategy to develop and improve them

5. What can we do to overcome population illiteracy and attract new clients (private investors)? Solution: Application for social network BMV strategy – the Bank of Moscow Vkontakte Huge successof social network applications shows they can be an effective instrument in public relations Our financial application will be an informational & entertaining game meant to attract and educate public and potential clients. User targeting in Vkontakte while entertaining potential clients will allow to offer them certain product of the Bank of Moscow they might be interested in. Results: attracting 1 mlnclients and accumulating 53 blnRURwithin 10 years

6. The Bank of the Moscow – the life-time bank! 2011 2016 2026 2059 Year 17 23 3369 (life expectancy in Russia) Client age Loan Mutual Fund Mortgage Pension Fund The Strategy (for the first 5 years to meet the market changes in the ensuing years) BMV plan (financial education development). Mutual funds and UIT development (please, refer to ). Long-term relationships with the clients initiation (to meet any clients needs especially in troubled times). Bond market leadership development (in line with operational strategy). Pension accruals system development (in line with operational strategy). Good luck in development! Thanks for attention! Freakonomists