Page 45 - FintechAtlas2019

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Serbia
A fast growing ecosystem in the activation phase
Waterfront towers in Belgrade, Serbia
Serbia is an EU candidate country with a well-developed and mature financial services infrastructure. The local fintech scene is growing and a number of prominent startups including Tradecore, Leanpay and Tenderly are leading the way.
According to Startup Genome, which explored the Serbian startup scene for the first time in 2019, Belgrade & Novi Sad have the second-fastest-growing ecosystem worldwide in terms of startups in the activation phase – a challenging ecosystem phase with only few startups and limited experience. Serbia adopted blockchain technology quickly, as a result of which more than 20 local blockchain startups and 30 international companies are developing blockchain solutions in the country. Tech startups pay little corporate income tax due to the accelerated R&D deduction (2x) and IP Box (3%) tax regimes. Serbia’s ICT exports have been growing at an annual rate of over 20%, with the government providing notable support in areas ranging from education to infrastructure.
Germany’s Finleap acquired the mobile banking startup Penta, which was founded by two entrepreneurs from Serbia and now also operates in the Italian market. And South Central Ventures’ investment in Leanpay, a consumer financing fintech startup that helps people to pay for consumer goods over time, was one of
the most notable investments of 2019. Leanpay allows vendors to offer instant and easy instalment plans to their customers across all sales channels.
The “Fintech 4 Business Forum” in June 2019 opened doors to new business collaboration opportunities and legal solutions.
The event’s two keynote speakers were Ana Brnabic, the Prime Minister, and Karen Westergard from the United States Agency for International Development (USAID). Issues under discussion included emerging financial technologies and the legal challenges faced by banks and startups.
Global fintechs have also recognised Serbia’s potential. Ten of the IDC fintech rankings top 100 carry out product development work in the country and it is home to the R&D centres of a number of large, internationally recognised players, including FIS, NCR and BlackRock.
Even though the adoption of financial technology still has a long way to go in Serbia, the increasingly active startup community, the technological adaptability of banks and the strong support shown by the government have created fertile ground for fintech growth and investment.
Country data
Population 2019 (M)
GDP total 2019 (€ Bn)
GDP per capita 2019 (€, at PPP)
GDP growth 2019 (% yoy)
GDP growth 2020 (% yoy)
Official currency
6.9
45.9
11,300
4.2
-4
RSD
Total bank assets 2019 (€ Bn) 36 Total bank assets (% of GDP) 79 Account ownership 2020 (% of population) 74 Debit card ownership 2020 (% of population) 63 Internet usage 2018/2019 (% of population) 73 Usage of internet to pay bills 2020 (% of population) 45 Sent/received digital payments 2020 (% of population) 70 Source: national sources, ECB, ITU, World Bank, RBI/Raiffeisen RESEARCH; estimates for 2020 penetration ratios
Source: IMF, ITU, World Bank, RBI/Raiffeisen RESEARCH, data for 2019 and estimates for GDP growth 2020