Page 17 - RBI FIntech Atlas 2018

The Old Bridge over the Neretva River in Mostar, Bosnia and Herzegovina Spotlight Bosnia and Herzegovina
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The mood on the ntech scene in Bosnia and Herzegovina in 2018 was one of cautious optimism. The grounds
for this include the banking industry’s entrepreneurial spirit, local knowledge and proactive approach towards the updating of the legal framework. Raiffeisen Bank
is pushing a series of initiatives aimed at improving the digital environment in order to allow the market to achieve its full potential.
Practical progress in the sector has, however, been limited. The legal obstacles facing ntechs include the absence of an electronic signature law. Similarly, the introduction of ID and veri cation technology is being hampered by strict data protection legislation and other obstacles created by the country’s complex political system.
In comparison with other markets the startup scene in Bosnia and Herzegovina receives little government support and tends to rely on the country’s entrepreneurial spirit. Despite this, however, the high quality and relatively
low cost of IT labour mean that there is a healthy ntech
product development scene and a strong market in solutions such as chat bots, P2P payments, mobile banking apps and other tools designed to meet the demand for digital transformation. Given the current limited local potential, these products are mostly sold on international markets, where there is demand for cutting edge solutions that respond to the latest digital banking trends.
Sarajevo School of Science and Technology (SSST),
the Faculty of Economics and Business of the University of Sarajevo and other institutions work proactively to create new ntech talent through such initiatives as co-organising ntech conferences. The SECO startup fund and ICBL incubator are currently trying to boost the ntech industry in the country. In 2018, however, Bosnia and Herzegovina failed to record a signi cant ntech transaction.
Total bank assets (€ Bn) 14 Total bank assets / GDP (%) 90
Account ownership (% of population) 59
Debit card ownership (% of population) 40
Internet usage (% of population) 69
Usage of internet to pay bills (% of population) 8
Send/received digital payments (% of population) 50
Latest available data as of 2017/2018
Source: ECB, national sources, World Bank, RBI/Raiffeisen RESEARCH
Country data
Population (M)
GDP total (€ Bn)
GDP per capita (€, at PPP) GDP growth (%)
Of cial currency
Source: Eurostat, IMF, European Commission, RBI/Raiffeisen RESEARCH Data for 2018, estimates
3.5
17
8,800
2.8
BAM