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Russia’s Central Bank included Avito Finance into financial platform operator register
The Bank of Russia included Avito Finance, a financial services development subsidiary of the Russian classified ads website Avito, in the register of financial platform operators (FPO).
The subsidiary became the eleventh in the register of financial platform operators, which also includes the Moscow Exchange financial marketplace Finuslugi, Sravni.ru, Banki.ru, VTB Registrar, Infinitum depository, and others.
The FPO status will allow the company to integrate products of various financial institutions into the transaction process. According to the description by the Bank of Russia, “financial platforms help consumers compare offers from multiple sellers, choose suitable conditions, and conclude a deal with a financial institution or issuer remotely 24/7, regardless of the location of the parties.”
As an Avito representative explained to RBC, previously, when buying a smartphone or a car on credit, a user had to study loan offers or installment plans on external platforms, which required additional time and effort. With the FPO status received, the company will allow users to study bank offers and fill out questionnaires on third-party platforms without leaving the Avito website. The data will be automatically retrieved from the citizen's digital profile upon identification through the Public Services portal, and once individual offers from partner banks have been received, it will be possible to sign an agreement and receive funds remotely.
The company plans to develop a line of financial services, including consumer lending, deposit programs and insurance services. New financial products under the FPO status will appear later this year. First, C2C lending will be launched for secondhand car purchases. It is assumed that the buyer will be paying back the loan to the bank, while the bank will immediately transfer the full amount for the car to the seller.