Montenegrin institutions do not provide enough incentives for female entrepreneurs in tourism to use digital financial tools.
Fintech (financial technology) is the use of technology, such as mobile applications, software and algorithms, to make financial services faster and more accessible. Fintech can be used to replace or complement traditional banking services through mobile banking, online payments, money transfer applications, cryptocurrencies or online lending platforms.
Founder of the eco-friendly wellness retreat FitCamp Montenegro, Angela Djokic, claims that the transition to digital payment systems has made its business easier.
"All of our programs can be paid for online, and this has certainly improved communication and simplified logistics when it comes to sales. In accordance with the Fiscalization Law, there are numerous software programs, very easy to use, that have improved financial operations, reduced the amount of printed paper, and made small tourism businesses as digital as possible," said Đokić.
She uses WeTravel, a platform for managing reservations and payments in tourism. The application facilitates the organization of group and multi-day trips, as well as managing payments and reservations, and is less used for individual trips.
"The digital market is flooded and the question really arises as to how to make the right choice, and yet all these tools have similar settings. Is all of this worth it to a small entrepreneur and can paying for these software increase the return on investment - I am not convinced that it can," she said.
Đokić claims that the biggest obstacle to her business is not digital, but infrastructural.
"We lack direct flights, despite my efforts to digitalize and automate my entire service. My customers mostly come from Western countries, so if there is no good connection, they can easily replace us with similar offers in Albania, Croatia, Greece...", said Đokić.
Although there is interest in digital systems among tourism entrepreneurs, the first fintech strategy in Montenegro was only adopted at the end of last year. The government's strategy for 2025-2029, among other things, states that financial literacy and access to digital services should be increased, especially among women from economically less developed municipalities.
It is also stated that the number of women using e-banking and m-banking should be increased, and their role in the development of digital financial solutions should be strengthened. On July 31, the government adopted information on the establishment of a Coordination Body for Monitoring the Implementation of the Strategy, which should propose an action plan for the development of financial technologies.
"Specific programs should be designed to support entrepreneurs, innovators in the field of Fintech, especially startups and women in business, and created with the aim of their successful launch and growth," the Government's strategy states.
The problem is the lack of technical training and support.
A survey by the Central Bank of Montenegro (CBCG) in November 2023 showed that women make up the majority of citizens without a bank account - 56,9 percent. It also states that there is a low level of knowledge among women about terms such as "Fintech", "open banking" and "mobile wallet".
The Chamber of Commerce of Montenegro claims that women do not sufficiently use digital tools that would make their business easier.
"Women are increasingly involved in entrepreneurship. They already own around 25 percent of small and medium-sized enterprises and make up 32 percent of registered entrepreneurs. They are particularly represented in trade, tourism and hospitality - areas that the digital economy can significantly improve," the Chamber of Commerce said.
A publication by the Statistical Office (MONSTAT) published on May 31 states that 26,3 percent of registered businesses in Montenegro are owned by women. The largest number of female entrepreneurs is registered in the health and social protection sector, while growth is noticeable in trade and professional activities.
The Chamber of Commerce emphasizes that women show great willingness to introduce digital innovations, stating that they are the most frequent beneficiaries of state grants for digitalization and that they continuously improve their digital skills.
"Although women lead in education, this is not sufficiently reflected in the use of digital tools in business," the Chamber of Commerce stated.
According to official data, Montenegrin municipalities awarded a total of 599.359 euros to women entrepreneurs last year through active participation in support programs.
Most municipalities did not respond to whether they have records of how many female entrepreneurs in tourism use digital tools.
Secretary for Tourism, Investment Development and Entrepreneurship of the Municipality of Herceg Novi, Suzana Nemarovic, said that there is no specific monitoring of women's digital inclusion in this coastal municipality. She claims that in the last three years, the municipality has allocated between 23.000 and 30.000 euros per year through support programs for women's entrepreneurship.
"The key obstacles in the area of business digitalization for women entrepreneurs have been shown to be the lack of technical training and support, limited financial resources for investing in digital solutions, as well as low awareness and trust in online platforms," said Nemarović, adding that their intention is for "digital transformation to become an integral part of local entrepreneurship support policies in the new strategic period."
Digitalization is not enough
The Ministry of Tourism did not respond to questions about whether they are planning special programs for the digitalization of small entrepreneurs in tourism. An analysis of digital flows and tools in tourism, which the Ministry conducted in July with the United Nations Office for Project Services (UNOPS), states that Montenegrin tourism is digitally fragmented and that there are numerous disconnected systems that hinder market development.
The analysis recommends the establishment of a single Tourist Information System (TIS), which would centralize data on tourists, accommodation and taxes. It is estimated that at least 1,3 million euros are needed for its implementation.
Fintech expert and co-founder of the "Fleka" studio Milos Milosevic believes that digital innovations in tourism can significantly increase revenue stability and improve business.
"You have the example of our ski resorts, where pre-season sales are particularly important. If purchases are delayed or if there is no snow, the company can easily find itself in a situation of serious financial problems. Pre-sold tickets and packages, with clear exchange options, provide at least partial income and reduce risks," claims Milošević.
He believes that digital tickets, quick refunds, date changes, and automated matching of payments with reservations increase conversion and security for both guests and organizers.
"Payment via a link through our service has seen strong growth in usage over the past three years, which shows that guests are happy to buy in advance when the process is simple and secure," added Milošević.
On July 29, the World Bank approved an eight million euro loan to Montenegro to modernize its digital payments infrastructure. The World Bank said at the time that the use of digital payments should increase by a third by 2030, including an additional 110.000 users - 70.000 of whom are women.
However, Anđela Đokić believes that digitalization will not be enough unless infrastructure is improved and targeted support programs are introduced.
"I promote my private business exclusively through digital channels, and without that, consumers wouldn't even have a chance to find us. But increasing demand itself doesn't depend on the opportunities provided by entrepreneurs, but also on those provided by the destination," she said.
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