13 May Interview with Davor Macura, Chairman of the Management Board of ALTA Bank, Serbia
Can you give us an overview of the growth of Serbia’s Banking Sector and key challenges and opportunities for regional expansion and competition?
Despite strong external influences that have shaped the global economy over the past five years, which have inevitably had some impact on the local market as well, the banking sector of Serbia has remained stable. It has demonstrated exceptionally high resilience to external factors in recent years, primarily due to the sector’s strong capitalization and liquidity. 2024 has been marked by the lowest share of non-performing loans, currently at less than 3%. This is a direct result of the agile policies of the local regulator, primarily through preventive measures in various segments aimed at protecting the financial system’s stability. Key regulatory decisions, including limiting interest rates on residential loans for individuals, have further contributed to the sector’s stability. In addition to regulatory measures, significant growth in the banking sector’s assets, a substantial increase in savings and the growing share of dinar-denominated savings have further strengthened the market.
One of the most significant economic events of 2024 was Serbia’s assignment of an investment-grade credit rating by the international rating agency Standard & Poor’s. This represents a strong confirmation of economic growth and strengthening of the economy, as well as an increase in confidence among international investors. The investment-grade rating is expected to lead to an increased inflow of foreign investments, as this rating serves as an indicator and guarantee of a stable and favorable business environment, both for the economy as a whole and for the banking sector.
Although the banking sector is inherently rigorous, in recent history and especially today, it has become one of the leaders in embracing and setting innovations. In a year that has already demonstrated clear trends for future development, I anticipate the continued acceleration of digitalization, an open and productive adoption of innovations and new trends. Banks that have implemented these changes will secure a stronger market position.
Today’s customers are digitally literate, expect more, value personalization and recognize the level of attention and dedication that a bank, as their financial partner, invests in them. Recognizing this, ALTA Bank has focused its development around the vision of a “Bank Tailored to People,“ where the customer remains at the center of all processes. Data protection, the application of the highest security standards, the development and enhancement of mobile banking, as well as the increase in cashless transactions, are becoming part of the everyday standard.
What highlights account for ALTA Bank’s success, including its recognition as the fastest-growing bank in Serbia?
As the official fastest-growing bank in Serbia in 2024, ALTA Bank continues the tradition of a financial institution with a 45-year-long history. ALTA is a story of perseverance and the support I have received over the past 15 years from my family and colleagues. It is a story of a team of professionals who work 25 hours a day, follow innovations and the world’s best trends while respecting domestic regulatory frameworks and market specifics, as well as the needs of our clients — all while developing systems that make a difference.
ALTA Bank operates within the ALTA Group, which also includes ALTA Exchange Offices and ALTA Pay, the largest electronic money institution in Serbia. Just like the bank, the group has had an exceptionally successful year, staying true to its strategic goals, advancing and implementing technologies, achieving strong financial results and investing in human capital and expertise. We opened our first exchange office in 2008. As the number of locations grew, the idea of integrating and establishing a payment institution became increasingly tangible. We recognized the need to facilitate daily business for exchange operators by creating opportunities for them to expand into payment transactions, an endeavor that required integration, software and infrastructure investments beyond the reach of individual exchange operators. The next logical step was banking, an opportunity that arose and became a necessity once the payment institution’s transaction volume had grown significantly. From a market perspective, the number of transactions processed through partnerships with banks at the time was already at the level of a small bank.
ALTA Bank was acquired gradually over several years through the purchase of shares from shareholders. Following this, we began investing in development, products and most importantly, in the people who drive the bank’s success and deliver the results we see today. We translated the experience and agility of exchange offices into the further development of an institution with a strong legacy, transforming it into a bank of the new era. Experienced banking and financial professionals, with extensive backgrounds in both domestic and international systems, joined us. As a result, the number of employees at ALTA Bank has increased nearly fivefold over the past five years and today our team consists of over 500 professionals. ALTA Group, including all its subsidiaries, now employs more than 800 people.
As one of the few banks under Serbian ownership, we remain committed to raising the standards of everyday banking, continuously adapting to the needs of our clients.
Operating within the group and in synergy with the ALTA Pay network, which encompasses more than 4,200 payment locations across Serbia and Montenegro, enables us to develop new products and benefits for our customers, such as the integration of consumer and cash loan sales through this extensive distribution network. The development and enhancement of ALTA Bank’s operations and business results remain our strategic commitment.
The acquisition of Addiko Bank represents one of the key pillars of ALTA Group’s continued growth and expansion. We recognize that this is a long-term endeavor, yet our commitment to its execution remains unwavering and aligned with our established standards.
What is the Role of digital technologies in Serbia’s banking industry and how is ALTA Bank embracing a digital future?
At ALTA Bank, we have been committed to innovation-driven growth from the very beginning, deliberately selecting digitally literate users as our target group. The banking sector itself has undergone numerous transformations in terms of business models to better tailor services to clients’ needs. Today, digitalization is both a necessity and a fundamental standard for business development.
Since 2020, the pandemic has significantly accelerated shifts in habits and daily routines, making user experiences smoother and reshaping consumer behavior by facilitating a transition from offline to online banking. This is precisely where e-banking and m-banking platforms play a crucial role, providing users with a personalized approach and convenient financial management anytime, anywhere. Convenience has gained additional value and customers increasingly choose solutions tailored to their specific needs.
In Serbia, there has been a noticeable increase in transactions conducted via digital platforms, both among individuals and businesses. Behind this progress lies data management and synergy with AI enables a predictive approach to understanding and meeting user needs. AI has undoubtedly become a key element of everyday life and business operations, both in Serbia and the wider region. Given the constantly evolving client base, digital solutions, particularly those utilizing AI technology, have become essential for delivering a superior customer experience. Guided by the vision of being a “Bank Tailored to People,” ALTA Bank is focused on solutions and services that provide customers with a personalized banking experience. At the same time, in full compliance with data protection standards and best practices of developed markets and global banks, our goal is to offer services at the highest level, ensuring a perfect balance between international standards and the specificities of the local market.
The accelerated processing of data, along with the use of advanced tools such as CRM systems and chatbots, enables greater personalization of services while maintaining the human factor as an essential element in ensuring service quality. To maintain a lasting competitive advantage, investment in employee training and development remains the foundation of our approach.
Digital platforms significantly simplify banking processes. One of our key advantages lies in the synergy with other members of our group. In collaboration with the ALTA Pay network of payment locations, we have developed a project for digital consumer and cash loan applications. The entire application process is conducted online, with predefined documentation requirements that users submit by taking a photo or scanning. The approval and disbursement process takes up to 24 hours and the service is available at multiple locations across Serbia.
What is ALTA Bank’s commitment to sustainability, including green projects and solar panel installation and its wider role in supporting Serbia’s green transition?
In line with its strategic goal of contributing to environmental protection and reducing its carbon footprint, ALTA Bank actively supports the economy in its green transition while also leading by personal and practical example. Over the past year, we have developed green credit lines and work daily with our clients and partners to raise awareness and promote the adoption of these critical changes.
To achieve climate neutrality by 2050, we have made direct investments by installing solar panels on the roof of our headquarters in New Belgrade. This initiative allows us to partially utilize electricity from our renewable sources, resulting in an annual reduction of more than 57 tons of CO₂ emissions. Sustainable financing is a key pillar for ensuring long-term economic growth. It is not just a trend but a fundamental necessity for both the economy and the market.
Can you provide an overview of ALTA Bank’s CSR programs and how these initiatives align with the bank’s values?
An image is built over time, but the values on which it stands are what every individual carries within and brings into the system. At ALTA Bank, we have a deeply rooted saying: “You bring it from home.” This also applies to the principles that guide us in implementing activities that are not business-oriented.
We are actively engaged in supporting the communities in which we operate. This is our way of giving back and making a difference. By fostering strong relationships and upholding true values, we support one another and by investing in the right causes, we build a better future. ALTA is the result of hard work and dedication, a quality shared by athletes, young and talented artists, children and the staff of social welfare institutions we visited as part of the “ALTA for Children’s Smiles” initiative. They all have one thing in common: they never give up. They fight with all their hearts for victories — some small and daily, some as their first steps after all hope seemed lost and some which are celebrated by an entire nation. The “ALTA for Children’s Smiles” initiative was carried out through visits and donations to social welfare institutions housing children without parental care and those with various levels of disabilities. The message of the campaign is love and its goal is to provide opportunities for every child, ensuring their inclusion and a chance for a better life. During our numerous visits, the children’s smiles were countless — that is our reward and our ultimate goal. The initiative will continue ahead of the Easter holidays.
Additionally, we actively support more than 20 sports associations and clubs. Among the largest are KK Crvena Zvezda and FK Vojvodina, but last year, we were all amazed by the phenomenal young fighters from the “Naito” Jiu-Jitsu Club in Smederevo, who won five gold medals and one silver at the Balkan Championship in Romania. Furthermore, we proudly support the widely recognized Sports Games for Youth, a regional project that brings together thousands of children from across the region. Our commitment extends to young karting drivers and the exceptionally talented Andrej Petrović, ALTA’s champion, who is the current champion of the Spanish Winter Formula 4 Championship in Navarra. We also take great pride in being sponsors of the Kolarac Endowment, founded in 1878, which today stands as one of Serbia’s most important centers for art, science and music.
What are the potential benefits of financial cooperation between the US and Serbia for ALTA Bank and the Serbian economy
The United States, as one of the largest economies of today, certainly represents a key market of interest for the Serbian economy and the region. The cooperation between our two markets is already quite active and successful, as evidenced by frequent bilateral visits and the significant number of investments and strategic partnerships in key sectors that have been realized over the past few years.
The range of products Serbia exports is vast, as is the influx of investments coming into Serbia, where over 250 American companies are actively operating. Furthermore, such cooperation would foster the development of the energy sector through investments in renewable energy sources and the strengthening of trade relations would facilitate easier export of Serbian products to the US market. Strategic partnerships could result in tax incentives for Serbian companies, making them more competitive in the international market.
It is my impression, and the figures confirm, that our country has been recognized as a stable and promising market, attractive to foreign investors. The presence of progressive and digitized financial institutions, such as ALTA Bank, can undoubtedly contribute to this. The upcoming period will be one of capital investments for Serbia’s banking sector and the economy as a whole, as well as a time for a clearer understanding of the significance and impact of past decisions and projects. The banking sector of the Republic of Serbia has remained stable and demonstrated high resilience to external influences in the past few years. The agile policy of the local regulator has created favorable conditions for both the population and the economy. This is precisely the environment that presents an opportunity for growth and it is within this setting that we, as ALTA Bank and the ALTA Group, see our opportunity for further positioning and development.