DIGITAL BANKING LEADERS

FINANCE

THE LEADER OF DIGITAL BANKING

According to a European Investment Bank report, the Czech Republic is the most successful EU country in digital technologies, while Mobi Banka leads the digitalization of banking in Serbia, says Milan Urbašek, a member of Mobi Banka's Executive Board

Milan Urbašek, member of Mobi Banka’s Executive Board

By:

JOVANA NIKOLIĆ

Photo:

NENAD JOKSIMOVIĆ

D

igital banking is no longer a luxury but a necessity today. With the idea of transforming banking in Serbia to be completely digital, Mobi Banka is well on its way to ending the year with 750,000 satisfied customers and breaking the prejudice that click banking is reserved only for the younger generation. We are talking about further digitalization of banking and Mobi Banka’s plans with Milan Urbašek, member of the Executive Board of Mobi Banka, who gained extensive international experience in leading positions in Kazakhstan, India, and Prague, working within Home Credit Group.

Mobi Banka is the first online mobile bank in Serbia. How does digital banking work and how much are the citizens of Serbia used to it? — Simply put, everything is just a click away. From opening an account, realizing transactions, to submitting a loan application, our clients can access almost all our services through the Mobi application. We see potential for further digitalization in the field of onboarding, where we would like to implement the good

practice of a Czech banking institutions’ consortium in the future. It is a “banking identity” system which, in compliance with all Know Your Customer regulations, enables fully digital onboarding of new clients, which may ultimately have a wider application than the banking sector.

When it comes to the structure of clients, I think we break the prejudice that modern business models mostly aim young people, because our clients come from the most diverse categories of the population. We even have a couple of tens of thousands of retirees who successfully use their app. Digital banking is no longer a luxury but a necessity today, so I think that the real trouble would be only if they had to get used to waiting in lines again, which, of course, we will not allow.

Mobi Banka and Yettel are part of the international investment PPF Group, established in the Czech Republic, which operates in 25 countries in Europe, North America, and Asia in the fields of finance, telecommunications, media, real estate, engineering, and biotechnology. What is the foundation for the success of this investment giant? — From the very beginning, in 1991, PPF has strategically chosen investment opportunities and carefully built its network. Today, PPF has assets of more than 40 billion euros, employs more than 82.000 people and has a large family of 27 companies from various fields of business where knowledge and experience intertwine and exchange, creating market leaders. Thanks to this corporate community, we have access to the best global practices, and our mission is to adapt these practices and offer them to the domestic market. We do this according to the principle of “glocal” – we recognize global trends, and then tailor them according to the needs of local clients.

What is it that sets Mobi Banka’s offer apart from others?

— In the first place, I would say that these are interest-free micro loans that we issue for the purchase of digital devices, thanks to our cooperation with Yettel. Until April this year, we have credited the purchase of over 850.000 digital devices worth more than 250 million euros, which is the equivalent of 460.000 credit lots. Although we don’t offer housing loans, we are here to help when it comes to the first next expense – furnishing the apartment. Clients often opt for our cash loans of up to 1.000.000 dinars, with a maximum repayment period of almost 6 years.

To what extent do the relations between the Czech Republic and Serbia affect the operations of Mobi Banka and the PPF Group in general in Serbia and vice versa?

— I would say that everything works on the principle of mutual trust and respect. The long-term friendship between the Czech Republic and Serbia creates a positive climate for the further development of our business in Serbia. On the other hand, each foreign investment, especially when it comes to the value of 2.8 billion euros that PPF invested in 2018, additionally strengthens the bridges between the two nations. This way, clients of companies like Mobi Banka have the opportunity to take “the best of both worlds”.

Finally, when we look at the bigger picture, we see that the volume of foreign trade exceeded 1.400 million euros last year, which makes the Czech Republic one of the 10 largest foreign trade partners for Serbia. This is complemented by non-financial benefits such as the exchange of experience and knowledge, which are equally important. I think that this is best illustrated by the fact that, according to the “Digitalization in Europe 2021-2022” report of the European Investment Bank, the Czech Republic was declared the most successful country within the EU in terms of advanced digital technologies last year, and that Mobi Banka is the leader in the digitalization of banking in Serbia.

In Serbia, Mobi Banka has over 650 thousand users. What strategy do you plan to use to reach the first million?

— Our plan sounds very simple, but in practice it is very demanding - we want to push the boundaries and transform banking so that it is fully digital and adapted to the needs of modern society. Along the way, we are guided by the principles of simplicity, accessibility, and innovation. This approach results in a dynamic and continuous increase in the number of users year after year; we currently have 670,000 users. Predictions say that we will close the year with 750 thousand satisfied clients, and having in mind that we have already realized 100 thousand completely online loans and 100 million digital transactions, I believe that we are ready to serve a million of them.

WE WANT TO PUSH THE BOUNDARIES AND TRANSFORM BANKING SO THAT IT IS FULLY DIGITAL