Digital Banking Scorecard: The challenges of the microfinance system

The Digital Banking Scorecard 2024 conference will discuss the good and bad of the local financial system, primarily digital banking, and what’s coming. Join us for the Digital Banking Scorecard, which will take place on March 19th, from 09.30, at the Sheraton Hotel in Bucharest.

During this year’s Digital Banking Scorecard (DBS), we will launch a new edition of our annual report, which follows the progress of digital banking in Romania.

Join us here to participate in the Digital Banking Scorecard 2024

What’s happening with microfinance?

We don’t talk much about microfinance, so we decided to host a particular debate on this topic at our event.

According to the Corporate Finance Institute, microfinance is a term for financial services offered to individuals of lower socioeconomic backgrounds or those lacking access to traditional financial services. Microfinance includes several benefits, including savings, checking accounts, fund transfers, micro insurance, and microcredit.

Microfinance originally started with microcredit, which is the practice of providing minimal loans to those who do not have a steady source of income, collateral, or any credit history. It also aims to support and kickstart entrepreneurs who do not have the financial backing to begin a small business or capitalise on an idea. 

In Romania, we also have the Romanian Microfinance Association, which was registered in December 2020 at the initiative of 14 Romanian microfinance institutions. Its purpose is to promote the microfinance sector in Romania and provide best practices in the field. Some of its members, like Adwisers Financial IFN, BT Mic, BCR Social Finance, and OMRO IFN, will be present at The Digital Banking Scorecard.

Natech Banking Solutions will also be present on this crucial panel to provide regional insights. The company democratises access to banking technology and liberates resources, allowing financial institutions to prioritise what's most important— outstanding service and customer fulfilment. Its product suite, encompassing everything from a core banking system to digital engagement channels, enables banks to craft and deliver personalised financial products. Catering to a diverse clientele that includes lively credit unions and local community banks, forward-thinking regional financial institutions, and Digital Challenger Banks, Natech is a pillar of technological advancement in banking.

Returning to the subject, microfinance institutions are at a turning point where technology can significantly increase their impact.

Bernd Wendeln, Chief Commercial Officer of Natech Banking Solutions, also said that “Nonetheless, their path to digitalisation is riddled with challenges. Key among these is enhancing customer interaction through digital channels, as current manual methods for processing loans and payments lag the accelerating pace of technological advancement and the growing expectations of digital-first customers.”

Also, limited access to modern customer interaction platforms and systemic fragmentation complicates creating a unified and seamless digital experience.

Join us here to participate in the Digital Banking Scorecard 2024

Many entities are hampered by outdated systems that aren't interconnected and rely on paper-based processes. These systems obstruct data-driven decisions and real-time responses. Maintaining these legacy systems is costly, and the resources to upgrade IT infrastructure are often scarce.

“The core of microfinance technology needs to surmount current limitations to foster innovation and growth or to serve customers digitally. As customer needs evolve, the ability to swiftly adapt and introduce new products is essential. To advance, microfinance must embrace scalable, integrated, agile and cloud-based solutions that democratise access to advanced computing resources”, also stated Bernd Wendeln.

The potential of microfinance

The potential for microfinance within the region is immense, with demand significantly surpassing current supply—an estimated gap of around €3 billion in the Balkans and Central and Eastern Europe.

“In Romania, precisely, the financial gap is estimated at over €850 million, according to a report from the European Microfinance Network. Projections indicate a rising demand for microfinance loans in the coming years, presenting Romania and the broader region as fertile ground for expanding existing Microfinance Institutions and establishing new ones. To effectively tap into this burgeoning market, existing and new financial institutions must recognise this opportunity and develop compelling product offerings”, underlined Natech Banking Solutions official.

To capitalise on this potential further, financial institutions offering microfinancing should implement a swift and seamless banking experience, which will be the key to capturing this market.

Furthermore, providing comprehensive digital channels, including web and mobile platforms, will enable customers to manage their applications and loans effortlessly, enhancing their overall experience and satisfaction.

More trends and outcomes of the microfinancing sector in Romania will be tackled in our debate. The speakers of this debate are Gabriel Crețu (Adwisers Financial IFN), Delia Olteanu (ING Bank Romania), Bern Wendeln (Natech Banking Solutions), Robert Maftei (OMRO IFN), Cristina Șindile (BT Mic) and Ștefan Buciuc (BCR Social Finance).

The Digital Banking Scorecard Report 2024

This year’s report will present the digital value propositions and features banks implement to create seamless user experiences.

The report evaluates banks in six categories and calculates an aggregate innovation score. DBS also presents significant trends in digital transformation and the technologies that are changing traditional banks.

Join us here to participate in the Digital Banking Scorecard 2024

What’s the agenda?

The speakers already confirmed are:

• Csaba Bálint – Member of the Board of the National Bank of Romania
• Mathias Schütz – CEO International & Deputy to Group CEO, Natech Banking Solutions
• Eleni Skoura – Executive Board Member and Head of Retail Banking, ING Bank Romania
• Cristina Șindile – CEO, BT MIC
• Gabriel Crețu – CEO, Adwisers Financial IFN SA
• Cristian Mustață – Deputy Executive Director, BCR
• Ștefan Buciuc – CEO, BCR Social Finance
• Raluca Andreica – CEO, Patria Credit
• Delia Olteanu – Head of Micro & SME Clients Strategy, ING Bank Romania
• Cătălin Chirieac – Digital Banking Services Manager, Raiffeisen Bank Romania
• Ionuț Encescu – Director, Head of Products and Digital Innovation Hub, First Bank
• Valentina Dragomir – Regional Sales Manager, IDnow
• Bernd Wendeln – Chief Commercial Officer, Natech Banking Solutions
• Robert Maftei – Deputy CEO, Filbo & OMRO IFN
• Cristian Chiru – Head of Multichannel and Digital Marketing, Intesa Sanpaolo Bank Romania
• Cristian Pașa – COO, Fagura
• Adrian Dinculescu – Managing Director, Namirial
• Alex Gavril – Cofounder, Promocrat
• Răzvan Enache – Business Development Manager, Future Banking
• Alexandru Ardelean – Moderator & Editor in Chief, Future Banking

The agenda of the Digital Banking Scorecard:

• Sharing insights from DB Scorecard 2024
• The agile way of transforming banking operations
• Evolving digital propositions: to online lending and beyond
• Improving customer experience in daily banking operations
• The digital future of the microfinance sector

You can find all the details of the agenda and the speakers here.

Join us here to participate in the Digital Banking Scorecard 2024

Do not forget that our events are also happening online in our virtual events platform, IC Events.

To participate in our event, you must register on the Digital Banking Scorecard event site, where you can find all the necessary details!

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The Digital Banking Scorecard is a Future Banking event with the support of:

Main Partner: Natech Banking Solutions

Silver Partners: Raiffeisen Bank, IDnow, First Bank, ING Bank, BCR, Namirial

With the support of: Libra Internet Bank, Ropeco