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  1. Cards and other means of e-payment Sarajevo,21 October 2014

  2. 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

  3. Long time tradition… The first bank in BH which introduced the cards operations The Bank changed the name in Zagrebačka banka BH d.d. The Bank introduced the internet banking for legal entities The process of integration of HVB-CPB and UniCredit Zagrebačka Bank – UniCredit Bank created 1997 2000 2004 2008 2006 2009 1993 1999 2004 Service of mobile banking, m-ba introduced E - banking for physical entities Majority owner of Bank became Zagrebačka Bank d.d. Zagreb Universal Bank d.d. Sarajevo merged to Zagrebačka bank BH d.d., the Bank changed name in UniCredit Zagrebačka bank d.d. The Bank started with its operations on 1993 with the name Hrvatska banka d.d. Mostar

  4. Business network today • 93 branches • 960,000 customers • 1,376 staff members With 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.

  5. Cards operations in UniCredit Bank – since beginning to nowadays

  6. Cards operations in UniCredit Bank First revolving card (MC revolving) Miles & More First loyality programme Licence for issuing The first debit card (Maestro) The First MC card) (MC Business) Upgrade EMV chip EFT POS and ATM network First Diners card 1996 1998 1999 2000 2001 2006 2007 2009 2010 .... VISA 24 consumers loans Repayment in installements and VISA 24 Cash credits Licence for acceptance Purchase of prepaid cards on ATM GPRS EFT POS First VISA card (VISA Classic)

  7. Cards operations UniCredit Bank - today

  8. Response to the market’s requirements • 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 • ........ Response to the requirements of customers and merchants are “SMART” payment cards with all the additional functionalities and EFT POS and ATM networks developed

  9. 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 offersa 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.

  10. Development of products in line with the markets needs While building the confidence and increasing the cards’ use and extendingthe 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 to24 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.

  11. 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.

  12. Trends of ATM, EFT POS networks and the turn over of BH vs. UniCredit Bank EFT POS NETWORK ATM NETWORK Average turn over by a card Source: Central Bank of BH

  13. Activities’ trends of payments cards issued by UniCredit Bank Activities of payments’ cards in UniCredit Bank

  14. 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. • 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.

  15. 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.

  16. Electronic and mobile banking – new technologies for easier business operations

  17. 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. Annual growth rate of newly contracted services, e – ba for legal persons Annual growth rate of newly contracted services e-ba and m-ba

  18. 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.

  19. 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.

  20. Internet use in the region and BH on 2010 Internet users in BH and the region Source:

  21. No of cell phones per capita in BH and Europe Cell phone services used by 80% BH citizens in the age of 15and over! Source:,

  22. Looking in future – strategy and plans

  23. Focus in future– Multichanneling UniCredit Bank • 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. 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.

  24. Looking in future … • E- commerce • Contactless cards • NFC (Near Field Communication)

  25. Questions Sandra Bohm • Contact phone: +387 36 356 357 • E-mail: