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BANKIERI: 1. Another challenging year, like 2019, is closing for the Albanian banking sector. What was your bank’s performance and key achievements & developments in this regard? 2. According to your bank’s perspective, what are the main challenges for the Albania banking system, in the wake of shaping and implementing re-modelling for the national economy, in the near future and beyond? will decrease growth in 2020, or rather a pickup in economic activity shall occur. Another challenge remains the informality. Besides the measures taken in the last years, informality remains at very high level and is a risk for the banking system, yet. More should be done in this regard, and hopefully the measures planned by the government will have the expected results. The required investments in digitalization are another challenge for banks. Now digitalization is becoming a reality and banks should invest considerable funds in this process.
ALPHA BANK ALBANIA George Papanastasiou CEO
1 The sustainable bank growth, the optimization of the cost to income and cost of risk ratios, the further reduction of NPL and NPE ratios and 10
Bankieri
January 2020
the simplification of the “customer journey” through our servicing channels, were our main objectives for the year 2019; providing our Customers, both individuals and businesses, with more personalized products and services, fair prices, simple processes, access anytime and anywhere through our digital platforms. All undertaken actions were related to the improvement of the financial position and the financial performance of the bank. The key performance indicators, set by the Board of Directors for all the corporate governance bodies and all our employees and managers, were efficiently monitored. The Internal Control System was improved, enriched in all areas of our banking activities. The customers’ transactions were supported by an upgraded core banking system: Flexcube 12.3 and Oracle Banking Digital Experience, which will substantially improve customer experience in both branches and e-banking. COSME Loan Guarantee Facility Program will facilitate the access to the credit for many businesses and the Alpha BOT, an artificial intelligence assistant through our Facebook page, 24/7 will personalize Q&A regarding products and services. 2 The development of the banking system should precede, and actually precedes, the economic developments in the country. At first, the banking system is supporting the economic growth
and is the most important player and contributor of the financial stability in the country. The banking consolidation of the last two years has produced an enhanced competitive environment which imposes the banks to differentiate through more competitive products and innovative solutions in order to provide both excellent experience and acceptable risks. Second, the banking system developments are in line with the needs and requirements of the digitalization of the economy. Many initiatives, coming from different banks and from the entire banking system, are going to enhance the efficiency of the intermediation in the economy, the financial inclusion and the access to banking services and products for greater part of the population. However, the banking system should challenge any disruptive digital transformation and should adhere to the best international practices. Third, a healthy banking market and its integrity require a continuous anti-informality reform and an improvement of the legal framework for the banking and financial markets. Authorities, banks and other financial institutions should work harder together to improve, not only the legal framework but also the smooth functioning of the market. This will increase the trust of the investors and of the fund users, which means more funds for the real economy and more jobs for the individuals.
