Cards and other means of e-payment
Sarajevo, 07 April 2015
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
2
Long time tradition…
The first bank in BH
which introduced
the
cards
operations
The Bank changed
the name in
Zagrebačka banka
BH d.d.
1997
1993
The Bank started with
its operations on 1993
with the name
Hrvatska banka d.d.
Mostar
3
The Bank introduced
the internet banking
for legal entities
2000
1999
Majority owner of
Bank became
Zagrebačka Bank
d.d. Zagreb
2004
2004
Universal Bank d.d. Sarajevo
merged to Zagrebačka bank BH
d.d., the Bank changed name in
UniCredit Zagrebačka bank d.d.
2006
E - banking for
physical entities
The process of integration
of HVB-CPB and
UniCredit Zagrebačka
Bank – UniCredit Bank
created
2008
2009
Service of mobile
banking, m-ba
introduced
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.
4
Cards operations in UniCredit Bank – since beginning to nowadays
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)
First Diners card
1996
1998
1999
2000
2001
VISA 24
consumers loans
Upgrade EMV chip
EFT POS and ATM
network
2006
2007
2009
2010
....
Repayment in
installements and VISA
24
Cash credits
Licence for acceptance
Purchase of prepaid cards on ATM
First VISA card
(VISA Classic)
6
GPRS EFT POS
Cards operations UniCredit Bank - today
More than 500,000 issued cards from the range
of VISA International and MasterCard Worldwide
More than 5,500 EFT POS
More than 210 ATMs
7
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,
-.........
8
Response to the
requirements of
customers and
merchants are
“SMART” payment
cards with all the
additional
functionalities and EFT
POS and ATM networks
developed
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
- ........
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.
9
Development of products in line with the markets needs
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.
10
Cards and the economy sector
11

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.
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
12
Activities’ trends of payments cards issued by UniCredit Bank
Activities of payments’ cards in UniCredit Bank
13
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.
14
Obstacles for faster development of cards’ operations in BH
15

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.
Annual growth rate of newly contracted services, e –
ba for legal persons
17
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.
18
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.
19
Internet use in the region and BH on 2010
Internet users in BH and the region
Source: www.internetworldstats.com
20
No of cell phones per capita in BH and Europe
Cell phone services used by 80% BH
citizens in the age of 15 and over!
Source: www.gfk.ba, http://en.wikipedia.org
21
Looking in future – strategy and plans
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.
23
Looking in future …
 E- commerce
 Contactless cards
 NFC (Near Field Communication)
24
Questions
Sandra Bohm


25
Contact phone: +387 36 356 357
E-mail: sandra.bohm@unicreditgroup.ba