SERBIA & MONTENEGRO

SERBIA & MONTENEGRO

AREA: 102,2 km2

POPULATION: 10,4 millionGDP TOTAL: 14,2 billion EURGDP PER CAP: 1.340 EURGDP REAL GROWTH IN %: 4,0EXPORTS IN % OF GDP: 22,7CONSUMER PRICES: 19,2

SERBIAN BANKING SECTOR(PAST 13YR. HISTORY)

APPROX. 50 BANKS IN SERBIA:

STATE BANKS (to be privatized in next few years) – universal banking with retail function (mostly with cards)

PRIVATE BANKS (majority started with corporate function, transition to universal banking)

NEW FOREIGN PLAYERS (Austria, Greece, France…) – universal banking with retail function (important players in card business)

SERBIAN BANKING SECTOR

31.Dec 2001 31.June 2003Active Current Accounts 35.000 42.000

Branches 52 59

Employees 585 650

Total assets (din million) 9.370 7.097

Total loans (din million) 8.075 6.100

Total deposits (din million) 7.106 5.090

KEY FIGURES ABOUT CONTINENTAL BANKA

BRANCH NETWORK

1991 – around 3.000 embossed Visa cards with international usage

1992 – International usage suspended, Visa cards just for domestic use

1996 – an associate membership in Visa International – reactivation of Visa Classic debit and Visa

Business programme (off-line) 1998 – international usage suspended, Visa cards just

for domestic use

CARDS IN CONTINENTAL BANKA – MAJOR MILESTONES

2000 – start of Yuba Card (domestic card) – cooperation with Planet / Arius

2001 – first ATM in Novi Sad – start of cooperation with Europlanet/Arius 2002 – reactivation of international Visa embossed pro-

gramme (Visa Classic debit and Visa Business) – ATM-s in 11 branches opened for Visa / Plus 2003 – start of migration towards Visa Electron Card

CARDS IN CONTINENTAL BANKA – MAJOR MILESTONES

VISA ELECTRON CARD

VISA BUSINESS CARD

VISA CLASSIC CARD

VISA ELECTRON START CARD

Debit Embossed First in Serbia with internet

usage allowed Launched as first Visa product

to satisfy middle class customers

Fastest issuing and personalization procedure (Europlanet)

VISA CLASSIC CARD

Average purchase amount: 35 US$

Average cash withdrawal: 65 US$

VISA CLASSIC CARD

INTERNATIONAL NATIONAL

VISA CLASSIC CARD

“There is a simple choice!”

“There is a hard choice!”

“There is practically unlimited choice!”

“Luckily, there is a right choice, the one which enables everything else.”

“Visa Classic card by Continental banka, your personal card.”

VISA BUSINESS CARD

Debit Embossed Limit based authorization for

each cardholder of one company

Average purchase amount: 77 US$

Average cash withdrawal: 108 US$

VISA BUSINESS CARD

INTERNATIONAL NATIONAL

VISA ELECTRON START CARD

Restricted to ATM and POS usage without expanded functions (cheques and teller transactions)

CB first to do customer segmentation and offer product for this segment of population

Split BIN – different design and application procedure for the same debit product

Simple application procedure Popular fees

Debit, Indent printed product for the young, aged 15-26

VISA ELECTRON START CARD

”Start, at the right time, Visa Electron Start Card by Continental banka.”

Monetary stability, lower inflation rate Stabilized exchange rate of dinar Fiscal reforms Around half of population unbanked Urban population have basic knowledge about cards Current account with cheques prevailing form of retail

accounts

MARKET OPORTUNITY FOR LAUNCHING MASS CARD PRODUCT

VISA ELECTRON CARD

Visa Electron was chosen as most used card in the region

The best way to give new quality to our current account and to improve our global position on the market

Great experience of banks in neighboring countries (Croatia, Hungary)

No experience in such migration in Serbia

HOW THE PRODUCT WAS CHOSEN

How to define all the functions of Visa Electron Card? How to define and close inactive accounts? How to generate thousands of cards using available data

and avoid manual data entering? How to make procedure simplest possible?

THE MOST IMPORTANT ACTIVITIES IN PREPARATION PERIOD

Current account holder should not be included in any part of issuing process

Initially, card linked to domestic current account only Activation of foreign currency account in any moment

customer wishes No application procedure, cards were produced for all

current account holders New accounts just with visa electron card Education of branch staff (visiting and explaining the

purpose and goals of project) Education of customers (special brochure)

HOW THE PRODUCT WAS LAUNCHED

Average purchase amount: 37 US$

Average cash withdrawal: 52 US$

VISA ELECTRON STATISTICS

INTERNATIONAL NATIONAL

VISA ELECTRON STATISTICS

VISA ELECTRON STATISTICS

VISA ELECTRON STATISTICS

More current accounts with Visa Electron and Visa Electron Start card

Visa Classic debit card transformation to revolving credit card

Prepaid products More ATM-s in branches and in other premises Introducing additional ATM services (paying household

bills, recharging prepaid mobile phone accounts) Preparation for EMV chip migration

FUTURE OF CARD BUSINESS IN CONTINENTAL BANKA

THANK YOU FOR YOUR ATTENTION!

Zoran TrpovskiExecutive Director, Retail banking division

Continental banka a.d. Novi SadSerbia & Montenegro