d4new technologies in retail banking

7/29/2019 D4New Technologies in Retail Banking

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New technologies inRetail Banking

The 4th SouthEast Europe

Finance & Investment Conference

26-27 October 2004, Dubrovnik


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Retail banking market in Croatia

Retail customers: 3.1 million

Retail deposits: HRK 84.2 billion

Loans to Retail: HRK 59.1 billion

Debit and credit cards: 6.0 million


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Retail deposits

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

01.2000. 01.2001. 01.2002. 01.2003. 01.2004.

HRKmillion

FC time

FC savings

Kuna time

Kuna savings

Kuna demand


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Retail loans

0

10.000

20.000

30.000

40.000

50.000

60.000

01.2000. 01.2001. 01.2002. 01.2003. 01.2004.

HRKmillion

Other Retail loans

Housing loans


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Distribution channels

Branches

ATMs

POS terminals

Internet and phone banking

Mobile phone banking (mPay)


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Distribution channels

0

200

400

600

800

1000

1200

1400

1600

1800

Dec 1998 Dec 1999 Dec 2000 Dec 2001 Dec 2002 Dec 2003

Branches ATMs


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Branches

Still dominant over other channelsDirect sales - the most effective way of selling retailproducts

Improvement of branches in response to customers

preference for visiting branches and for personalrelationship

Key changes to branch design (modern look and feel,creation and wider use of zoning, greater use of

automation and technology)

175 PBZ branches


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ATMs

Number of transactions growing

Average amount rises

Number of customers switching to ATMs growingNew functionalities mobile top up


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Credit and debit cards

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

1.9.2002. 1.12.2002. 1.3.2003. 1.6.2003. 1.9.2003. 1.12.2003. 1.3.2004. 1.6.2004.

Credit cards

Debit cards


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POS terminals

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

1.12.2000. 1.6.2001. 1.12.2001. 1.6.2002. 1.12.2002. 1.6.2003. 1.12.2003. 1.6.2004.

EFT POS


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Number of transactions per channels in PBZ

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

1.1.2001. 1.1.2002. 1.1.2003. 1.1.2004.

PBZ365

EFT POS

ATM

Branches


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PBZ Card Acquiring

Market leader in acquiring business on the Croatianmarket

- 10.260 POS terminals- 6.700 points of sale (merchant locations)

- 390 ATMs

All card brands acceptance

Amex, MasterCard, MasterCard Electronic, Maestro,Visa, Visa Electron, Diners, JCB, proprietary cards


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PBZ Card Issuing

More than 1.69 million cards issued as per September,2004 (pre-paid, pay now, pay later)

- Maestro debit cards (current acc.) - 860.000

- Visa Electron debit cards (FX acc.) - 215.000- Visa Business Electron debit - 125.000- MasterCard and Visa Classic revolving creditand charge cards - 40.000- American Express cards 400.000

- MasterCard co-brand football card- Visa Electron business corporate

- Pre-paid Maestro cards


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American Express cards

Personal charge cards- gold and green

Affinity products ( Rotary, Dental chamber,Croatian nurses association, Croatian tennis

association)Business cards- gold and green

Revolving credit cardsCo-brand cards (Konzum, HTmobile, Croatia

Airlines)Blue Smart CardStart Card

TOTAL: 400.000 cards


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Internet banking in Croatia

Started in 2000

Access to Internet: 39% of population

Active users of Internet: 25% of population

Internet banking: approximately 200.000 users

potential for growth

PBZ365

Classic, Optima, Lite49 thousand clients


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mPay new and unique service enables customer to payusing mobile phone by debiting current account or otherPBZ cards (Amex, MasterCard, Visa)

3 ways to use mPay service:

- tx triggered by merchant (shops, restaurants, etc.);

- tx triggered by utility company;

- tx triggered by client himself (bank inquiries,money transfer)


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Very simple to use (whole process lasts up to 10 seconds)

Open platform

Based on USSD technology (quick and safe messages)

Works on all POS terminals and on mobile phones


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d4new technologies in retail banking

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