MORE
THAN A FINANCIAL
HOW
INSTITUTE:
HDB ARE SUPPORTING THE ECONOMIC FUTURE OF GREECE
MORE THAN A FINANCIAL INSTITUTE:
HOW HDB ARE SUPPORTING THE ECONOMIC FUTURE OF GREECE
In May 2024, the European Commission released its latest economic forecast for Greece.
“Following a reduced, but still solid economic performance in 2023, GDP growth is expected to pick up slightly in 2024 and 2025, supported by export, investments, and private consumption,” it said.
In addition, the forecast highlighted an expected GDP growth of 2.2% in 2024, with economic growth projected at 2.3% in 2025.
“Investment is expected to gain further momentum, and become a key contributor to output growth,” it continued.
Supporting the economic growth in Greece is the Hellenic Development Bank (HDB), the mission of which is to support micro, small and medium enterprises (MSMEs) by facilitating access to funding sources, whilst assisting in risk management.
HELLENIC DEVELOPMENT BANK
PROJECT
DIRECTED BY: LISA MAXWELL
WRITTEN BY: LAURA GREEN
HELLENIC DEVELOPMENT
A relatively young institute formed in 2019 (but with a financial history dating back to 2003), HDB has since facilitated 120,000 loans totalling over sixteen billion euros.
“We are more than just a bank,” shared Nikolaos Maroulas, Director of Risk Management at HDB, “Our business model is multi-faceted, covering a range of functions aimed at fostering economic growth - from the design and management of portfolio funds to the development of loan and guarantee schemes”.
Putting entrepreneurs at its heart, HDB is dedicated to finding creative ways to support MSMEs at every stage of their journey.
“Every touch point of our business is dedicated to championing entrepreneur’s dreams, fueling economic growth, and nurturing development,” he continued.
Innovating Solutions to Reduce Risk
HDB has launched several innovative initiatives, including its Know Your Customer (KYC) platform to ensure financial risk is managed, whilst also enhancing the efficiency of its service to customers.
The KYC project implemented by HDB serves as a critical component of the risk management efforts of the bank. The platform has been developed to support the bank in verifying the identity of loan applicants.
“KYC isn't just collecting IDs. It's diving deep into databases, cross-referencing information, and painting a vivid picture of each loan applicant's eligibility and credibility,” explained Nikolaos.
This includes evaluating factors such as the applicant's tax insurance clearance, business size or geographical location to identify the eligibility of the business to take a loan. Detailed reporting of this information enables HDB to technically design programs of loans.
“The KYC platform aims to enhance accessibility of MSMEs to finance. This initiative will not only make even small and remote businesses visible in the banking system, but also provide a clear overview of Greece’s entire entrepreneurial landscape,” he said.
In addition, HDB is exploring how it can embed artificial intelligence in its loan origination process. This initiative aims to leverage cutting edge AI technologies to streamline and enhance various aspects of the loan origination journey.
“Imagine AI algorithms working tirelessly behind the scenes, automating tasks, crunching numbers, and speeding up loan approvals. It's like having a supercharged system that never sleeps ensuring, smoother operations and faster decision making,” Nikolaos explained. “This allows the bank to process loan applications more quickly, improving overall operational efficiency. In addition, this approach helps us mitigate risks and capitalise on further opportunities”.
A Collaborative Approach to Risk
Joining HDB in 2021 as Head of Credit Risk Management, before being appointed as Director of Risk Management in December 2023, Nikolaos has taken on a number of risk related roles in diverse financial environments across the globe.
aimed at fortifying the bank's resilience. However, strategic risk goes far beyond Nikolaos’ direct team and across the business.
“I am keen to foster vigilance, proactiveness, and collaboration across the business when it comes to risk management, from our “front-line” to our “back-office”,” he said.
Key to Nikolaos’ role is to refine the company’s risk policies in line with best practice and European law.
“One of the team’s primary responsibilities is to design and implement HDB’s risk management framework, tailored to our unique needs and objectives. This framework serves as a structured approach to identifying, assessing, and managing risks across the organisation, covering areas such as operational risk, business impact analysis, business
We stand by your side and we are here to support
Cooperative Bank of Karditsa is a regional financial institution in Greece that focuses on providing personalized banking services and supporting the local economy through various financial products tailored to individuals, businesses, social and agricultural enterprises. Known for its community-oriented approach, the bank emphasizes cooperative principles, fostering sustainable development and economic growth within Thessaly region. •
continuity plans, portfolios, and credit risk,” he explained further.
Like most countries, the Greek financial sector is dynamic. HDB is committed to navigating the unique challenges and opportunities present in this market to ensure the bank's success.
In addition, HDB is focussed on remaining ahead of emerging trends.
“This proactive engagement allows us to adapt our response and practices, whilst also seizing opportunities for growth,” shared Nikolaos.
HELLENIC DEVELOPMENT
Expanding Entrepreneurial Economic Growth
Having progressively expanded since its inception, HDB’s current growth strategy revolves around bolstering the financial eco-system for MSMEs in Greece by serving as a crucial component in entrepreneurs' financial cycle.
Continuing on its mission, HDB aims to collateralise the portion of business risk that traditional banking systems may not accept, by expanding the realm of viable entrepreneurial ventures.
“HDB maintains a highly focused business agenda that adapts continually to mitigate the adverse impacts of the challenging macroeconomic landscape. HDB aspires to establish itself as a benchmark entity in providing supplementary funding for the Greek MSME market, thereby becoming a catalyst for growth within the local economy,” closed Nikolaos.
www.hdb.gr
www.hdb.gr
