Tinkoff Bank acquires app “Vkarmane” (“In the pocket”)

Tinkoff bank

The Bank expects that the service for document storage will make its customers use its other services more extensively.

“Tinkoff Bank” buys the app for storing documents in a smartphone “Vkarmane” (In the pocket), told “Vedomosti” a representative of the Bank. The app allows you to automatically fill in fields on sites that require you to enter passport data, the number SNILS (Social Security Number), etc.

The amount of the transaction was not disclosed, but sources close to both sides say that it is tens of millions of rubles, but not more than $1 million.

“Tinkoff Bank” plans to develop the app and integrate it into a financial supermarket Tinkoff[dot]ru. Before the sale “In the pocket” team used to work with “Tinkoff Bank” (app “traffic tickets and fines GIBDD”), among other partners of the service “Alfa insurance” and “Renaissance insurance” and “Yandex”.

The Bank said that it will not close the application for partners.

“We have integrated the app in spring of 2016”, – said the representative of “Yandex”. The app is working with “Yandex.Fines” and allows the user to reduce the number of steps when selecting driver’s license number and insurance certificate for the payment of traffic fines, he explains. Filling in the fields is possible only for those users who have installed the app “In the pocket” and the application “Yandex.Fines,” he continues.

All documents are stored on the smartphone and protected by AES 256 encryption algorithm, and to access the device user usually needs a password or fingerprint, so the risks of data theft are minimal, says Mr. Pakhandrin (founder of “In the pocket”)/ “Hackers are usually not interested in personal data as such, no one breaks the encryption algorithms, they’re after the money, so the problem of security of personal data is exaggerated”, says the CEO of Digital Security Ilya Medvedovskiy. According to him, the developers rarely order an independent verification of the safety of their products, banks, introducing a particular product, as a rule, they do because if a vulnerability exists, it will automatically become the Bank’s vulnerability.

Tinkoff Bank expects that the integration service “In the pocket” will lead to the fact that users will make more transactions through the platform Tinkoff.ru: all the documents are at hand and they don’t have to delay a particular transaction.

The Bank buys only the project. The team will focus on their own developments, says Sergey Pahkandrin. According to him, his team was challenged to create a product, to attract more customers and sell it to a major player. The app helps to create a market place, he continues, for example, if the driver’s license is downloaded into the app, it automatically starts to check whether there are any fines, and therefore it integrates well into services for paying fines. The same situation is with taxes.

Tinkoff Bank predicts earnings in 2017 will be 40% more than in 2016.

“We relatively quickly agreed with the “Tinkoff Bank”, and I think it was due to the fact that we had already collaborated with them, in addition, our application can be easily integrated into the IT system of the Bank, – says Sergey Pahkandrin. – We had an adequate understanding of our price and place in the market, and I am more than positive about the deal.”

Director of the investment fund Life.Sreda Igor Pesin assumes that the transaction price was well below $1 million, given the market conditions and the policy of Tinkoff Bank, rarely buying startups. Rather, he said, the founders had two choices: either to close the project or sell it on unfavorable terms. Now many people want to store documents electronically and to avoid routine when filling out paperwork or buying tickets, it is very fashionable, especially in light of the advent of blockchain technology, says Mr. Pesin. However, we need a single market standard, he says, because it will not work if every Bank is to create the technology that is incompatible with others. “Apps like “In the pocket”, are not profitable, but banks monetize such products,” concluded Mr. Pesin.

“In the pocket” is not the only project of its kind in the Russian market. For example, Sberbank has the app called “Wallet” that can store documents and discount cards.

“In the pocket” app is installed 700 000 times, the application has 150 000 active users per month, said a representative of “Tinkoff Bank” and expects that due to the synergistic effect of audience the app could grow to 10 million users.

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