Experiences of Commercial Banks in Bosnia and Herzegovina with Electronic Payments

1. Experiences of Commercial Banks in Bosnia and Herzegovina with Electronic Payments Sanjin Stević, Šef Sektora Kartičarstva i elektronskog bankarstva

2. The Basic Data • Card business has existed in the bank since 2002, when domestic BamCard, debit and credit cards have been introduced; • Since 2006, international cards Maestro/MasterCard have been part of our offer, and since 2007, Visa cards as well; • Electronic banking has been included in our offer since 2007; Sarajevo, 21.10.2010. Sanjin Stević, Šef Sektora Kartičarstva i elektronskog bankarstva

3. Limiting Factors: • Society which with many difficulties accepts changes; • Fear of using payment cards and new technologies in general; • Existence of grey economy which hinders faster development of new technologies; • Insufficient knowledge of clients on the possible benefits; Sarajevo, 21.10.2010. Sanjin Stević, Šef Sektora Kartičarstva i elektronskog bankarstva

4. Electronic Banking: • In the beginning, clients had no confidence in this service; • Since the introduction of electronic banking, the number of transactions and users has been increasing constantly; • One of the most important limiting factors is the non-acceptance of electronic signature by some companies and institutions; Sarajevo, 21.10.2010. Sanjin Stević, Šef Sektora Kartičarstva i elektronskog bankarstva

5. Electronic Banking: Sarajevo, 21.10.2010. Sanjin Stević, Šef Sektora Kartičarstva i elektronskog bankarstva

6. Payment Cards: • Visa and MasterCard debit, credit, gold and business cards are included in the offer; • Clients who have no experience with cards have a fear of using them, and once they start using the cards, the fear disappears and most payments are performed by means of a card; • As the grey economy percentage is decreasing, and the control of money flows is becoming better, clients increasingly use cards as means of payment; • Experiences with payment cards are positive, and permanent education of employees and clients is a very important factor in establishing confidence in the offered product; Sarajevo, 21.10.2010. Sanjin Stević, Šef Sektora Kartičarstva i elektronskog bankarstva

7. Payment Cards: • CHIP + PIN – for all Visa and MasterCard cards; • Developed system of monitoring and checking of transactions 24 hours through DMS system; • ATMs of the Bank are equipped with up-to-dated, technical forms of protection which make impossible copying of data from the card, i.e. stealing of data from the card; • EMV POS acquiring for Visa and Mastercard products; • SMS notification of transactions; • Implementation of PCI standards; Sarajevo, 21.10.2010. Sanjin Stević, Šef Sektora Kartičarstva i elektronskog bankarstva

8. Platne kartice: • The number of cards is increasing, as well as the turnover on cards, ATMs and POSs; Sarajevo, 21.10.2010. Sanjin Stević, Šef Sektora Kartičarstva i elektronskog bankarstva

9. Education and Trends: • Every day education of employees and clients. Internal education of employees within the Bank gives very good results; • Although there are objective obstacles, turnover and usage of payment cards increases every month; • It is very important to acquire the confidence of clients in reliability and safety of using electronic banking and payment cards; • To improve the offer according to the requests of clients and markets. Sarajevo, 21.10.2010. Sanjin Stević, Šef Sektora Kartičarstva i elektronskog bankarstva

10. Thank you! Sanjin Stević sanjin.stevic@nlbtuzlanskabanka.ba NLB Tuzlanska banka d.d., Tuzla Maršala Tita 34, 75000 Tuzla T: +387 35 259 445 F: +387 35 302 839 E: info@nlbtuzlanskabanka.ba Sanjin Stević, Šef Sektora Kartičarstva i elektronskog bankarstva