Yandex has recently made a move to purchase a medium sized financial firm, Acropol for over $1 billion roubles or around $15 million. The move will be beneficial to Yandex because it allows the technology firm to obtain a banking license for the fast moving internet firm.
The banking license enables the firm to step into the sector of banking or financial services, enabling it to grow its services and add more value to its user base.
Why does Yandex want to step into the banking sector and offer financial services under its umbrella?
Let’s find out.
Yandex Had Financial Services Plans In the Past
Remember that Yandex worked with other firms in the past to try and deploy their financial services and banking products. At least, it tried to work with others. Unfortunately for Yandex, it did not work out. It was working with one of the leading banks in Russia, Sberbank in the summer of 2020 on a joint venture for e-payments, but it shortly left that partnership.
Then, it sought to purchase Tinkoff, a neobank in Russia. Remember that Tinkoff does not have any physical branches and obtains all of its customers through the web and online. Further, it delivers all of its service in an online manner. The firm would have been a decent acquisition for Yandex. But again, the deal did not work out for Yandex.
This made Yandex move on to the next step in its plans to become a financial services provider. Now, in 2021, it purchases Acropol, a mid size bank that ranks in the 300’s from an assets standpoint.
At the same time, it is necessary to note that the Acropol acquisition is still under consideration from the central bank of Russia.
Yandex now has a banking license, from its universal banking license will now be part of the Yandex umbrella. The Russian corporation has shown robustness in its recent earnings report, as it continues to gain value from its advertising segments of business. It is also increasing its efforts in the ecommerce and food delivery sector as well.
Find out more about Yandex and their latest moves on Geekinsider.