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Cards and other means of e-payment
Sarajevo, 19 April 2023
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AGENDA
Introduction – few information about UniCredit Bank
Cards business operations in UniCredit Bank – from beginning until
nowadays
Internet and mobile banking – new technologies for easier business
operations
Looking into future – strategy and plans
Long time tradition…
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1997
1999
The first bank in BH which introduced the cards operations
Majority owner of Bank became Zagrebačka Bank d.d. Zagreb
The Bank introduced the internet banking for legal entities
2004
2004
Universal Bank d.d. Sarajevo merged to Zagrebačka bank BH d.d., the Bank changed name in UniCredit Zagrebačka bank d.d.
2000
The Bank changed the name in Zagrebačka banka BH d.d.
2006
E - banking for physical entities
2008
The process of integration of HVB-CPB and UniCredit Zagrebačka Bank – UniCredit Bank created
1993
The Bank started with its operations on 1993 with the name Hrvatska banka d.d. Mostar
2009
Service of mobile banking, m-ba introduced
Business network today
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Prijedor
Laktaši
Banja LukaS.Most
B.Krupa
Bihać
Cazin
V.Kladuša
B.Krupa
Bihać
Cazin
V.KladušaOdžak
Orašje
Brčko
GradačacGračanica
Srebrenik
Tuzla
KalesijaŽivinice
Lukavac
Doboj
JelahTešanj
Maglaj
Žepče
ZenicaKakanj
Visoko
Kiseljak
SarajevoRama
Konjic
Mostar
Uskoplje
Bugojno
Jajce
TravnikVitez
LivnoTomislavgrad
PosušjeŠiroki Brijeg
Grude
Čitluk
Međugorje
Čapljina
Stolac
Neum
LjubuškiWith many years of hard work and development of products and services, we adjust every day to the
needs of our customers and partners striving for the perfection and creation of the innovative solutions
that shall make their everyday work and lives easier.
• 93 branches
• 960,000 customers
• 1,376 staff members
Cards operations in UniCredit Bank – since beginning to nowadays
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Cards operations in UniCredit Bank
First Diners card
First revolving card
(MC revolving)
Purchase of prepaid cards on ATM
1996 1998 1999 2000 2001 2006 2007 2009 2010
Licence for acceptance
Licence for issuing
First VISA card
(VISA Classic)
The first debit card (Maestro)
The First MC card)(MC Business)
VISA 24 consumers loans
....
Upgrade EMV chip EFT POS and ATM
network
Repayment in installements and VISA
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Cash credits
Miles & More First loyality programme
GPRS EFT POS
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Cards operations UniCredit Bank - today
Response to the market’s requirements
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Response to the requirements of customers and merchants are
“SMART” payment cards with all the
additional functionalities and EFT POS and ATM networks
developed
Customer wants : - to dispose with the own funds 24/7,- to purchase safely,- to have different way of payment- to have no interest deferred payment- to repay the debt in installments,- different possibilities of quick payment- control of costs,-.........
Merchant wants:- to increase the turn over, - to be competitive, - to have the guarantee that they will be paid,- to have regular reimbursement,- to have modern business running- ........
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Development of products in line with the needs of market
Led by customers’ needs of having practical and safe disposition of own money, we provided for them international accepted debit cards of the current account as the non cash payments means.
The product offers a range of advantages recognized by clients after overcoming the prior fear of using cards.
Purchase is quick, simple and safe.
Decrease of the risk of holding cash with oneself , lost card can be blocked immediately,
Saving of precious time,
Minimal documents’ number needed to open the account,
Quick issuing of card, free of charge,
Safe product – EMV chip technology,
Extended ATM and EFT POS network in BH – own money at disposition during 24/7,
Cash withdrawal, free of charge, at19.000 ATMs of the group members in 18 European countries.
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While building the confidence and increasing the cards’ use and extending the EFT POS network, which provides the possibility of non cash payments, we open the doors for introduction of other cards products, charge cards and revolving cards
In these products, customers recognize the added values which became available to them:
No interest deferred payment,
Purchase with installments payments, free of interest and charge,
Consumers credits up to 24 months,
Cash loans up to 24 months,
Repayment of costs in the future,
Automated repayment of debt in line with the capabilities and wishes of a customer
First loyalty program - Miles & More.
Development of products in line with the markets needs
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Cards and the economy sector
Increase of cards payments, as well as, increase of number of cards have contributed to the increase of general transparency of payments.
At the very end, electronic payments helps better control of payments in the country, i.e. the decrease of unregistered economy and decrease of tax evasion – money circulation via cards is introduced in the banking system recording each transactions.
Increase of number of transactions via cards influences positively on the GDP.
With electronic payment we achieve huge saving due to the decrease of paper work.
Electronic payment makes administrative work more simple and accelerate them.
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Trends of ATM, EFT POS networks and the turn over of BH vs. UniCredit Bank
Source: Central Bank of BH
EFT POS NETWORK ATM NETWORK
Average turn over by a card
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Activities’ trends of payments cards issued by UniCredit Bank
Activities of payments’ cards in UniCredit Bank
Education with customers and users/Cooperation with Cards companies
Employees in the Bank’s business network are the largest source of information for a customer and often the primary interface to the Bank. In many cases, the advice of an employee is more important than any kind of written notice /paper.
In order to provide for customers the good quality information on products, their advantages and ways of use, UniCredit Bank invests continuously in education of own employees.
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In cooperation with Cards companies Visa Int. And MasterCard, UniCredit Bank organizes comprehensive promotional campaigns, aiming to increase the use of credit cards and to reward the users of credit cards.
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Obstacles for faster development of cards’ operations in BH
The merchants are offering cash payments discount and discourage cards payments in that way (the cards are transparent way of payment and they help to fend off the gray economy).
Tax and contributions evasion-the employer pays out a part of wage without records.
High level of unemployment and a habit to pay with the cash.
Administrative obstacles – non acceptance of slip as the executed payment evidence.
Not enough literacy and confidence of clients related to the use of cards.
Electronic and mobile banking – new technologies for easier business
operations
Electronic and mobile banking
In line with the market trends and clients’ needs, we introduced:
Electronic banking for legal entities in March 2004.
Internet banking, e-ba, on June, 2006
Mobile banking, m-ba, on April, 2009.
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Annual growth rate of newly contracted services, e – ba for legal persons
Annual growth rate of newly contracted services e-ba and m-ba
Advantages for users of e-banking and mobile banking
No time and space limits.
Electronic and mobile banking accessible 24 hours, seven days in a week.
Management of personal business finances, regardless the location.
Fees for transactions carried out via electronic and mobile banking are more favorable compared to standard counter orders.
Safe performance of banking operations.
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Obstacles for faster development of electronic and mobile banking in BH
Lower number of internet users compared to the surrounding countries.
Lower number of mobile devices’ users compared to the surrounding countries.
Not enough education of customers.
Established habits, difficult to change.
Concern about the transactions safety.
Illiteracy in using technology and fear from the bad experience.
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Internet use in the region and BH on 2010
Source: www.internetworldstats.com
Internet users in BH and the region
No of cell phones per capita in BH and Europe
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Source: www.gfk.ba, http://en.wikipedia.org
Cell phone services used by 80% BH
citizens in the age of 15 and over!
Looking in future – strategy and plans
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Focus in future– Multichanneling UniCredit Bank
RESPONSE - DIRECT CHANNELS OF DISTRIBUTION
To present to customers the direct channels (ATM, internet and mobile banking) as the package of the self servicing devices.
To encourage the clients to use the direct channels (self servicing devices) instead waiting in queue.
The modern way of life is demanding the fast tempo, pushes us to be at several places in the same time, we have permanent lack of time.
New generations have the same financial needs, but different behavior and understanding of technology, they use web sites as the primarily source of communication, they prefer the “on-line” life and they are not tolerant to technology limitations.
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Looking in future …
E- commerce
Contactless cards
NFC (Near Field Communication)
