The year 2024 is now behind us. What was it like for the domestic financial sector – how much was a year of stabilization, and how much was a year of challenges and uncertainty?
In recent years, we have witnessed a series of geopolitical and economic changes that have significantly affected the global financial sector in a very short period of time. However, we can definitely speak of the year that is now behind us as a year of stabilization in the entire region. Major and key decisions have been made that guarantee further economic and financial growth. For Serbia, where ALTA Group predominantly operates, the most important moment was obtaining an investment credit rating from Standard & Poor's. This is a significant opportunity for economic growth and strengthening the economy through the inflow of investments. The banking sector in the region is stable.
In the past year, Alta Pay has expanded its operations to the Montenegrin market. What are your impressions of the first 6 months? What can clients expect in 2025?
By entering the Montenegrin market, our goal was to further develop and position Alta Pay as a regional provider in the field of payment institutions. Following the model of our previous business in Serbia, where the service is available at around 4.200 payment points, we have enabled citizens to perform financial transactions at partner locations throughout Montenegro. We believe that we have succeeded in positioning ourselves and gaining trust, while at the same time being guided by providing top-quality and secure services. The expertise and dedication of our employees, as well as the highly standardized fintech systems we use, are definitely key factors that make a difference. We will continue to expand our business by establishing cooperation with new partners in the network, as well as by improving payment services through Alta Pay Podgorica and Montenegro Transfers Podgorica, the first registered payment institution in Montenegro and the only Western Union agent for simple money transfers from abroad. We truly believe that the quality of services and conditions we offer our clients further supports the business of our partners within the network.
In recent months, the company "ABL Solvent", which you own, announced work on the "Greenline" project. What more can you tell us about this investment? How does it affect the real estate market in Serbia and the region?
Yes, this is an exceptional project, from an urban perspective, a complete refreshment in the region. The name itself is based on the slogan of a green corridor, 800 meters long. The dominant function is housing, with accompanying facilities that contribute to the quality of life. I am proud that a project like this was initiated and set up by a company within the ALTA group.
However, this is an investment project for us. We are currently in the development phase and obtaining the necessary permits. We will definitely leave the further implementation to a specialized company that deals with large construction projects, while the profit will be directed to investing in existing business. Our ultimate goal is the further development and operations of the ALTA Group and ALTA Bank.
Let's go back to the financial sector. Digitalization is the key to development when it comes to the financial sector. How quickly is it necessary to adapt and how ready are both the market and clients for it?
ALTA banka was among the first to introduce a number of digital solutions and we work on process automation every day. This is key to optimizing operations – reducing costs and increasing efficiency, but also to improving the customer experience. E-banking, m-banking, the application of artificial intelligence and the comprehensive transformation of operational processes that take place in the background are just part of the accelerated digital transformation that the banking sector is undergoing. Yes, it is crucial to be the first or among the first, to adapt quickly and react even faster to changes – it is a continuous flow of innovation and learning. This has brought us a significant comparative advantage. Banking service users adapt quickly because it is in their interest to use artificial intelligence to manage their finances more easily and receive personalized services.
A large number of users are younger generations, for whom this has already become the standard. On the other hand, our employees form a system that must monitor and integrate all these changes. Our responsibility is to ensure that digital inclusion is productive and that we continuously invest in the education and development of our people. People are still the key factor in the process and the measure of quality. The market as such does not have much choice, because further development has become a prerequisite for continuing business. 21st century business does not tolerate stagnation and a traditional approach.
And a question we cannot avoid. ALTA banka has positioned itself in the top 10 banks in Serbia in terms of profitability. You have a clear strategy for expansion in the domestic and regional markets. What are your next steps in this regard?
ALTA banka is the result of dedicated and continuous work, and this is primarily a team result. We are ending the year with almost 500 employees in the bank. Gathering experienced financial experts who have recognized ALTA banka as a leader in modern banking and constantly investing in human resources development, improving skills and employee satisfaction, is one of our key imperatives, especially in the period of digital transformation that we have already mentioned.
During 2024, we focused on expanding our branch network in Serbia and developing new digital products, services, and electronic services. We will continue this trend, with the aim of raising business standards and compliance with all regulations and standards in all areas of our business.
Our key mission remains to put the customer and their experience at ALTA Banka first. To that end, the Visa Gold card has been launched, which comes with a complete set of benefits and will be available to all customers with an open account. In the coming months, we also expect to launch new applications that will be competitive with the best banks in the region in all parameters. We believe that m-banking, with its simplicity and accessibility, is the most direct channel of communication between the customer and the bank.
In the acquisition of Addiko Bank shares, you are in the race with two other extremely strong banks from Serbia. How do you comment on the developments so far and what do you expect in the next steps?
Yes, during 2024, two more banks operating in Serbia and the region announced their intention to purchase Addiko Bank shares. The process of acquiring a portion of Addiko Bank shares is an expression of the desire for regional expansion of the ALTA Group. This is a long-term investment horizon of importance to all stakeholders. The process itself is still ongoing, and in that sense I would not state any expectations or plans. We will see.
We have been completely transparent and compliant from day one. All our business decisions and next steps, as before, will be in accordance with the decisions and guidelines of the relevant regulators.
(ALTA bank)
