In a state of constant growth and expansion: with almost 500 empolyees in branches and sub-branches in Ulaanbaatar and rural areas, Zoos Bank has 62,000 current account holders.

Looking to achieve better governance and more transparency in its business, Zoos Bank breaks the mold and becomes the first in the sector to enter the stock market

FIRST established in 1999 as a private commercial bank, the Zoos Bank of Mongolia is a true success story. With a starting capital of $300,000 and a staff of just nine people, the bank has grown in the last seven years to 470 employees, eight divisions, 33 branches, and total assets of $100 million. Now, with offices in the capital, Ulaanbaatar, and all throughout Mongolia, it is an up and coming leader in the banking sector. Its strategy, “expand, advance and strengthen”, has been the driving force behind its recent growth.

Providing financial services based on the latest technological advances, Zoos Bank strives to be a reliable, reputable and internationally recognized bank. Its most recent news is its shift to a public company, and its subsequent listing on the Mongolian Stock Exchange – the first bank in the country to do so. President and CEO of Zoos Bank, Sh. Chudanjii, says, “We wanted to lead the way for other companies towards more transparent activities in the market. We can become a model of a stock company which meets market requirements. It is a very brave step, and we faced difficulties as pioneers because there was a lot of uncertainty, yet we believe in the process. We believe many companies will follow us, including other banks.”

SH. CHUDANJII President and CEO of Zoos Bank INTERVIEW

As a result of its listing, the bank is expecting its governance to further improve, as well as upgrade its bank activities, because now all activities will be observed. A bank that began with seven shareholders and increased to more than 200 immediately after its listing, it is ultimately looking to achieve transparency. As Ms. Chudanjii says, “Good monitoring for business is one of the keys to success.” While the company looks to gain strength in the domestic market, its long-term goal is to be accepted into the international market, and the stock exchange is a solid first step.

One aspect that sets Zoos Bank apart from other national banks is its loans. Banks in Mongolia generally don’t offer long-term loans, the longest usually being up to one year. However, Zoos Bank has been successfully implementing projects such as the Housing Project Loan, the Private Sector Development Loan, and the Micro-finance Project Loan, among others. They are currently working towards offering low interest loans for periods of up to five years. “A public listing builds a foundation towards attracting international capital in the long term. We are attracting capital in order to grant long-term loans,” explains Ms. Chudanjii.

Aside from its trailblazing stock market activity, Zoos Bank was also the first bank to introduce a personal customer adviser (PCA) service to its customers as well as mobile phone banking for people on the move. In the last five years, the bank has won awards such as the Leading Bank of Mongolia for its contribution to the Mongolian economy and its implementation of the state monetary policy. It has additionally won awards for the Best Marketer, the Best Supporting Bank of Economy, and the Leading Social Insurance Contributor.

Currently ranked as the fifth commercial bank in the domestic market, Zoos Bank is looking to advance into the top three. In addition to succeeding on the MSE, the bank ultimately wants to attract capital from abroad, boost the Mongolian economy and support the growth of the nation. It is currently involved in projects ranging from employment generation and housing to development of the agricultural sector. “Banks serve society,” says Ms. Chudanjii. “We have a responsibility to society, and we strive to raise the bar and contribute more to Mongolia.”