In 2024, the global banking industry faces a more challenging environment with higher uncertainties. One aspect, however, remains certain: The transformation and digitalization in the financial services industry will continue and present numerous opportunities for innovative companies.

At Addiko Group, we remain confident for the CSEE region as we see impressive resilience compared to the rest of Europe. Amid the complexity ahead in 2024, we continue to be focused on our commitment of becoming the leading specialist bank for consumer- and SME-loans in South-Eastern Europe by offering the best customer service combined with highly attractive product offerings.

The global economic slowdown, intensified by geopolitical tensions, results in an environment marked by lower visibility and somewhat less economic activity. For banks, it becomes even more crucial to adapt and maintain their strategic focus. Addiko continues to prioritize growth in its focus areas of consumers and SMEs, combined with operational excellence and the further enhancement of our digital capabilities. This dedicated approach involves monitoring economic indicators, adapting product offerings to meet changing needs and ensuring resilience in the face of uncertainty.

Addiko focuses on particularly profitable market segments. The entire region is still benefitting from significant investments into production facilities or IT-outsourcing, raising overall economic activity and increasing wages and standards of living. This leads to higher investments by smaller and medium enterprises that are also benefitting from this trend.

New trends and business opportunities emerge on the horizon

Attractive interest rates for deposits combined with premium digital offerings present a significant opportunity for financial institutions in the region. Additionally, the use of technology to assess risks allows banks to understand the various types of risks they face and develop tailored solutions for clients. Exploring partnerships with merchants are further propelling a bank's business. Such a diversification of services and distribution channels can open new revenue streams and broaden the customer base.

Adaptation and strategic partnerships are instrumental in seizing these forthcoming opportunities in 2024. Banks joining forces with fintechs – a trend seen in previous years will continue given the market forces driving consolidation and the demand for elevated customer experience. In line with this, Addiko is actively exploring collaboration opportunities with fintechs across the Adriatic region and beyond to harness the potential of such dynamic partnerships creating further value for our customers. The global banking industry will further undergo digital transformation, with a strong emphasis on the mobile banking app in the center of both digital and human interactions. This trend will continue to have an impact on the digital infrastructure and user-friendly interfaces for our Consumer and SME segments in the CSEE region.

At Addiko we are using the power of artificial intelligence and technology to improve customer services, streamline operations, and maintain competitiveness in the banking sector. Implementing AI in risk assessment can enhance lending decisions, making it easier for SMEs to access credit while maintaining prudent risk management. Our ongoing investments in process automation, and digitization will - as we believe - set us apart in the industry.

Nowadays, customers can initiate transactions and applications online, with an incredibly fast approval processes from initiation to decision. Addiko has set a benchmark for fast loan application in markets such as Slovenia, where even new customers can have their loan paid out within 60 minutes. In Croatia, Addiko Bank pioneered a blended model between digital channels and human interaction to service the customer with maximum convenience when requesting a loan. This approach caters to the demands of consumers who value speed and convenience. Next to further integrating the distribution channels, powering the channels with data analytics will contribute to enhance customer satisfaction and drive efficiency at scale for the bank.

While strongly focusing on digital products, we will nevertheless retain our physical branches which give a competitive edge and provides customers with choices - they can opt for online services or have a personalized experiences with advice and service at our branches.

As a specialist bank focused on servicing consumers and small businesses through fast lending and saving options, Addiko Bank will continue to innovate both in its offering and distribution strategy in order to meet the customer needs whenever and wherever.