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The Quality Series

Lichnyi Kapital LLC; Russia’s First and Finest Personal Financial Advisory

Personal finance innovators bring high quality advisory services to individuals across Russia


Vladimir Savenok, Founder and CEO of Lichnyi Kapital.


Russia, the largest country in the world by land mass, is spread out across wild terrains, tundras, and forests, covering 11 time zones across the expanse of its varied territory. Yet, it is also a country that is highly concentrated among its westernmost cities, with the majority of economic activity and its population of 144 million residing far west of the Ural mountains, the traditional center line of the country.

Russia’s capital and largest city, Moscow, is a big driver of the country’s business activity. Truly at the center of cultural, political, and economic life in Russia, it does seem that all roads do indeed lead to Moscow. The city is the connecting node at the center of the Russian Federal Highway system—with roads radiating out from Moscow like the spokes of a wheel—and is home to 4 international airports, 9 railway terminals, and one of the world’s largest and deepest underground metro systems, the Moscow Metro, with over 200 stations across the city. It is also the base of operation of many of the country’s biggest international companies, such as Gazprom, Aeroflot, Rosneft, and Lukoil.

Russia’s economy is the 12th largest by nominal GDP (gross domestic product) and 6th largest when adjusted for PPP (purchasing power parity), and due to Russia’s enormous wealth of natural resources, especially in oil and natural gas, the largest sector is petrochemical mining and export. Exports of oil, natural gas, metals, and timber account for over 80% of total exports. The economy has developed in extremely positive directions over the past two decades, with an expanding economy and rising wages buoying the population, effectively expanding the middle class from 8 million people in 2000 to 104 million by 2014, and dropping unemployment from 12.4% to 5.4% over the same time period. These developments have snowballed into a healthy market economy inside of Russia, with increased consumption providing opportunities in commercial endeavors.

With the sudden influx of people with real wealth to manage, and financial futures to consider, it suddenly became imperative to set up a real financial advisory industry in the country. Not only are people suddenly finding themselves with more disposable income that ever before, many families have been lifted out of poverty for the first time, so financial literacy in the country is surprisingly low compared to its rate of income and growth. Lichnyi Kapital LLC, based in Moscow, is a company devoted to helping both advise individuals on financial planning and increase financial literacy in the country.

Spreading responsible individual wealth management and financial literacy


Lichnyi Kapital LLC (which translates to “Private Capital”) is a financial advisory firm based in Moscow, with additional offices operating out of St. Petersburg, Minsk, and Kazan. It was founded in 2002, right at the beginning of Russia’s epoch of economic growth, by CEO and owner Vladimir Savenok, who is by all accounts the first private financial advisor in Russia. An innovator in the field, and a visionary who saw the need for a service once considered only for the extremely wealthy, Savenok has penned several best-selling books in Russia on the topic, including titles such as Create Your Own Personal Capital; Simple Steps to Prosperity and How to Create a Personal Financial Plan and How to Implement It, among others.

Vladimir Savenok and the team of Lichnyi Kapital LLC.

LKapital, as the company is commonly known, came online at the right time in a country with a sudden need for responsible personal financial management. The company helps its clients develop personal financial plans using a mix of investment and saving strategies, strategic insurance of assets, and projections of future financial needs. The company has forged partnerships with banks, asset management companies, and insurance companies to provide the financial instruments and products that its clients need to execute their customized financial plans. With a customer-focused business model, the company doesn’t end its involvement with the client after the plan has been created and executed. It adjusts goals, plans, and investments every time a client’s life situation or income shifts, becoming a valuable partner over the course of its customers’ lives.

LKapital has captured about ¾ of the personal financial advisory market in Russia thanks to its depth of dedication to quality and excellence. First, it understands that developing its financial advisors as both professionals and as people is essential to providing the best possible service to clients. Not only does LKapital work hard to train and develop high qualified finance professionals, it has been actively involved in establishing the state standards for financial advisors in the country.

LKapital takes its position as a pioneer in the field of personal financial management in Russia very seriously, performing community outreach projects to help increase the level of financial literacy in the country. Largely a global phenomenon, schools often lack even the most basic instruction in financial literacy. LKapital has taken up the mantle of instructing young people in these matters by holding financial literacy workshops at local secondary schools and universities. Financial professionals from LKapital share their knowledge and expertise by teaching the important, basic skills that everyone needs to manage their money wisely, including how to create a budget, the importance of saving and investing early and often, and knowledge of the different kinds of financial instruments, accounts, and products that are available to individuals.

For its dedication to quality, its pursuit of human capital development and continuous improvement, its foresight of the Russian market, its growth as a company, and its community outreach activities, Lichnyi Kapital LLC has been selected to receive the 2016 BID International Quality Award, one of the world’s highest honors for organizational quality and innovation.

ABOUT BID AND THE INTERNATIONAL ARCH OF EUROPE AWARD:


BID is a private and independent organization founded in 1984, whose primary activity is business communication orientated towards quality, excellence and innovation in management. A leader in the broadcasting of Quality Culture, BID recognizes those companies and organizations which lead the most important activities in the business world, and is considered the founding organization in the broadcasting of the Culture of Quality, Excellence and Innovation in 179 countries. The trophy symbolizes a pledge to the principles of Quality Culture. The QC100 Total Quality Management Model, together with the Quality Mix program, media coverage of the convention and its impact on the community and business sector, create an unmatched platform for continuous improvement within the organization and awareness of the achievements of the company at an international level. Awards are given only to those who are committed to improving their Quality Culture based on the principles of the QC100 Total Quality Management Model. Candidates are proposed by the leaders of previously awarded companies who they consider worthy of the award. Especially meritorious candidates may also be nominated. The International BID Quality Award Selection Committee then chooses the winning companies who will receive the award in New York, Paris, Geneva, Frankfurt, Madrid and London.

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