Banking under fire: why Oschadbank went against the logic of banking manuals — and won
Interview
When tutorials recommend using the “ostrich algorithm”
I once thoroughly researched the question of how the authors of manuals and “best practices” recommend that banks behave during wars. All are tips on one thing: survival by winding down activities. Staff reduction, risk minimization, credit termination, reserve storage, and stabilization expectations, i.e. using the “ostrich algorithm.”
A 2011 World Bank report on bank behavior during wars stated, “A key strategy of banks during periods of armed conflict is avoiding risk by minimizing lending and concentrating on liquidity management.”
Classic guides to crisis management also advise to refrain from activity, consolidate capital, and wait for better times.
It looked logical and, at first glance, uncontested. And this is how banks acted during financial crises in different parts of the world. But what to do when the crisis is not financial but existential? When isn't only the survival of the bank at stake, but also the survival of the country?
We at Oschad quickly understood: no textbook will prepare you for the decisions that have to be made when cities are shelled and people have no access to money or banking services. It was evident: it was time to compose our own textbook and establish a novel approach that was founded on responsibility rather than fear. We followed this path. And we did it correctly, as time has proven.
A strategy that contradicted instincts
Our choice was radical: instead of closing lending, Oschad not only did not stop it but, on the contrary, liberalized its credit policy. We have created new business support products, launched grant programs, and significantly democratized collateral requirements. Some colleagues from other banks looked at us like kamikazes.
The result exceeded all expectations: with the increase in loan portfolios for all business lines (the largest increase during the full-scale war occurred for micro, small and medium-sized business clients — three times), the NPL for new loans is only 1%. This is a phenomenal result that proves that trust can be mutual even in the most difficult times.
We consciously focused on those who had the hardest time. Today, 20% of the loan portfolio of Oschad MMSB are loans to businesses operating 100-150 kilometers from the front line. These are entrepreneurs who risk everything every day, even their own lives.
Through collaboration with the eRobota (eJob) state grant program and international partner programs, we have aided thousands of female entrepreneurs, veteran businesses, and young individuals launching their first ventures. Each of these stories is not just about a loan or a grant, but about a renewed hope, saved jobs, and a return to the lives of entire communities.
Human capital as the main asset
With the onset of a full-scale war, many companies began to make massive cuts. We went against this logic. Instead of cuts, we invested in people—in our employees. Where possible, we not only saved jobs but also created new ones. We helped colleagues evacuate from dangerous regions, provided and provide psychological support, and introduced health insurance. As a result, people realize that the bank did not abandon them in their hour of need and pay for their care.
Inclusivity as a strategy of presence
When a full-scale war began, many communities were left without banking services. Traditional logic would advise closing branches in dangerous regions. We did the opposite.
We are the only ones to introduce mobile banking branches “on wheels”: 10 specialized vehicles provide services in front-line and remote communities. These are full-fledged banking branches that operate where there are no other banks.
Our mobile branches reach villages where the only connection with the world is an employee of Oschad on wheels once a week. They serve the military in communities as close as possible to hostilities, pensioners in remote villages, and entrepreneurs in front-line cities.
Inclusivity for us is not a concept but a daily practice. To build this practice systematically, we implement the inclusive program “My Accessibility,” which focuses on improving the accessibility of our branches, further digital transformation, and rehabilitation and reintegration of veterans into civilian life. The purpose of this program is simple: all Ukrainians should have equal opportunities.
Our results
UAH 18.6 billion pre-tax profit for 2024 is not just a historical record. This is proof that ethical banking can be profitable even in the most difficult times.
Our UAH 431 billion of assets is the largest in the history of Oschad. At the same time, the quality of assets improved, not worsened.
About 6 million customers are not statistics, but people. They are businessmen rebuilding destroyed enterprises. Families who buy furniture for new homes. Military personnel planning a future after demobilization. Immigrants who start life from scratch.
Oschad’s 1,150 branches make it the largest banking network in the country.
Four reasons for our resilience
Presence. We didn't run away. When many international companies curtailed their activities in Ukraine, we remained—physically, digitally, and emotionally.
Speed. We ran programs for days, not months. During wartime, it means life. While others were discussing the risks, we acted.
Leadership. We initiated, not observed. Oschad became a catalyst for many changes in the banking system of Ukraine.
Courage. We went against the logic of fear—and won! Fear is a bad advisor. It is better to be guided by reasonable optimism and responsibility.
Next is reconstruction
Oschad actively finances critical infrastructure, the agricultural sector, production, and export. Our strategy until 2028 provides more: reconstruction and development of the Ukrainian economy, creation of conditions for the return of Ukrainians home, and gradual integration into the EU.
In focus of all our plans are people and taking care of them. We plan to become the most responsible bank that helps build a new country.
Rebuilding is not just restoring what has been destroyed. This is an opportunity to build better. And Oschad is preparing to become a key bank for the restoration of Ukraine on the basis of strict compliance with all the norms of the civilized world: ESG, anti-fraud, and creation of the most convenient services.
Lessons taught by the war
In times of turbulence, the most important thing is trust. We kept it. And it was the trust that gave us the strength to build a new economy despite the war. Trust of customers, trust of employees, trust of partners, trust of regulators.
We have proven that a bank can be not just a commercial structure, but a social institution. That profit and principles can go hand in hand. That even in the darkest times you can remain human.
The main lesson we learned from these three and a half years is that it is not textbooks that make a bank successful, but people. People who are ready to take risks, trust, and take responsibility. And just such people work in Oschadbank.
Interview
Oschadbank Press Center