Banking Trends in Emerging Europe: Looking Towards Albania's Future
Explore the evolving landscape of banking in Emerging Europe with a focus on Albania. Key trends include digitization, reduction of physical branches, emergence of technology banks, and the shift from cash to electronic payments. Increased regulation, low interest rates, and the development of interest margins shape the industry's future. Traditional banks are adapting to offer more advisory services amidst the rise of cryptocurrencies.
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New Trends in Banking What s in store for Albania? Heinz Wiedner Tirana, October 11th 2019 A Brave New World? The Future of Banking in Emerging Europe 1
Banks must adopt to low interest rates Reduction of branches, staff and ATMs Increasing digitization Inside Emergence of technology banks From cash to electronic payments Traditional banks to focus on advisory Increased regulation affects banks returns Emergence of cryptocurrencies 2 A Brave New World? The Future of Banking in Emerging Europe [ 2 ] October 6, 2024
Development of Interest Margins Banks must adopt to low interest rates Source: World Bank 3 A Brave New World? The Future of Banking in Emerging Europe [ 3 ] October 6, 2024
Reduction of branches, staff and ATMs Evolution of EU Banking Sector thousands thousands Source: European Banking Federation Source: European Banking Federation 4 A Brave New World? The Future of Banking in Emerging Europe [ 4 ] October 6, 2024
Increasing Digitization Digitization will affect all aspects of banking 5 A Brave New World? The Future of Banking in Emerging Europe [ 5 ] October 6, 2024
Emergence of Technology Banks Technology Banks 6 A Brave New World? The Future of Banking in Emerging Europe [ 6 ] October 6, 2024
From Cash to Electronic Payments Global volumes and benefits of non- cash transaction 7 A Brave New World? The Future of Banking in Emerging Europe [ 7 ] October 6, 2024
From Cash to Electronic Payments Global volumes and benefits of non-cash transaction 8 A Brave New World? The Future of Banking in Emerging Europe [ 8 ] October 6, 2024
Traditional banks to focus on advisory Competitive differentiators will make the difference Source: Capgemini Financial Services Analysis 2018 9 A Brave New World? The Future of Banking in Emerging Europe [ 9 ] October 6, 2024
Increased regulation affects banks returns On average, from 2012 to 2017, banking valuations have lagged all other industries ROE (%) vs P/B by industry, global (average from 2012-17) 1 Other financials includes insurance, asset managers, private equity, real estate, payments processing companies, networks and multisector holding companies 2 Based on a sample of ~1,000 largest banks globally in terms of assets SOURCE: S&P Global Market Intelligence, McKinsey Panorama 10 A Brave New World? The Future of Banking in Emerging Europe [ 10 ] October 6, 2024
Emergence of Crypto currencies Cryptocurrencies are challenging the legacy 11 A Brave New World? The Future of Banking in Emerging Europe [ 11 ] October 6, 2024
ANNEX 12 A Brave New World? The Future of Banking in Emerging Europe
Development of Interest Margins from a study of Banks must adopt to low 122 EU Banks interest rates Source: BearingPoint F&R KPI Database 2018 13 A Brave New World? The Future of Banking in Emerging Europe [ 13 ] October 6, 2024
Increasing Digitization Banks lag behind other industries in level of digitization Source: 14 A Brave New World? The Future of Banking in Emerging Europe [ 14 ] October 6, 2024
Whats in store for Albania? 15 A Brave New World? The Future of Banking in Emerging Europe
Reduction of branches, staff and ATMs Evolution in Albania Staff Branches ATMs 7000 1000 900 6950 800 6900 700 6850 600 6800 500 6750 400 6700 300 6650 200 6600 100 6550 0 2012 2013 2014 2015 2016 2017 2018 Source: Albanian Associations of Banks 16 A Brave New World? The Future of Banking in Emerging Europe [ 16 ] October 6, 2024
Whats in Store for Albania? Banks need to develop their digital identity Digital transformation isn t about achieving some final state, but rather building change as a core competency Mindset 17 A Brave New World? The Future of Banking in Emerging Europe [ 17 ] October 6, 2024
Whats in Store for Albania? Value gap requires customer centricity Banks focusing on products fail to meet customer s expectations. They should rather focus on customer s needs Think mobile first as Albanians are oriented towards high mobile usage Enable digital engagement and acquisition Branches aren t going away, leverage their usage-sales and advisory Seek only products/services that add measurable value for the customer 18 A Brave New World? The Future of Banking in Emerging Europe [ 18 ] October 6, 2024
Whats in Store for Albania? Partner with Fintechs They are tech savvy, they are agile, they are fast and often cheaper Embrace disruption, don t let it destroy your value ! 19 A Brave New World? The Future of Banking in Emerging Europe [ 19 ] October 6, 2024
Expanding Digital Capabilities Banking is changing Fintech partnerships K ptal lat a k vetkez re: card payment Data analytics/use of insights Open Banking/Use of APIS Commitment to Digital and Innovation Artificial Intelligence & Blockchain 20 A Brave New World? The Future of Banking in Emerging Europe [ 20 ] October 6, 2024
