Kosovo Banking Association and IFC Sign Agreement to Advance Digital Transformation and Financial Inclusion

Kosovo Banking Association (KBA) and the International Finance Corporation (IFC), part of the World Bank Group, have signed a cooperation agreement to advance digital financial services, develop fintech ecosystems, and enhance credit information systems in Kosovo. The agreement was signed by KBA CEO, Mr. Petrit Balija, and IFC Regional Manager for the Western Balkans, Mr. Nicolas Marquier. This collaboration is an integral part of the Digital Financial Services and Embedded Finance Project for the Western Balkans, funded by the Swiss State Secretariat for Economic Affairs (SECO). The project aims to align Kosovo's financial systems with European standards, supporting financial inclusion and sustainable economic growth. By addressing regulatory and institutional gaps, this initiative lays the groundwork for innovative financial services and advanced credit systems, delivering tangible benefits to individuals, businesses, and the overall economy. The project seeks to modernize Kosovo's financial sector by expanding access to credit and providing secure, efficient financial services tailored to the needs of individuals and small and medium-sized enterprises (SMEs). Improved access to technology and the integration of international best practices will contribute to a more inclusive and sustainable financial system.

Through this partnership, KBA and IFC will focus on key areas, including:

• Raising awareness about digital registration and e-KYC: Developing training and workshops to enhance digital registration and electronic client identification (e-KYC) practices, addressing existing challenges, and improving financial risk management in Kosovo.
• Promoting open banking: Identifying and prioritizing use cases for open banking to create a more accessible and user-centric financial system.
• Best practices for cashless payments: Providing insights on best models for implementing cashless payments, mechanisms to encourage their adoption, and organizing financial education campaigns.
• New digital financial models: Identifying and implementing new financial models based on international practices through specialized training and seminars.
• Strengthening cybersecurity resilience: Developing self-assessment guides for cybersecurity and organizing workshops to raise awareness of cyber risks and safe practices in the financial sector.
• Leveraging cloud technologies in financial services: Training on commercial opportunities and business models based on cloud technologies, while promoting compliance with international data protection regulations.
• Improving credit information systems: Organizing training sessions and gathering information on current data usage practices to develop new products and expand the client base, ensuring data security and protection.

Key Benefits

This project will enable Kosovo's financial sector to offer more accessible services and innovative, affordable financial products. Enhancing regulatory frameworks and developing infrastructure will promote financial inclusion, reduce credit risks, and create a secure environment for sustainable investments.

About Kosovo Banking Association

Kosovo Banking Association (KBA) supports the development of the banking sector and is the representative voice of the banking industry in the Republic of Kosovo. We support member banks to achieve their objectives by providing a platform for advocacy, capacity building, and public relations.  Banking is key to Kosovo's economic development and prosperity, and we help advance this cause. Our main objectives are to create optimal conditions for an innovative, sustainable, secure, and inclusive banking sector in Kosovo. . For more information, visit About us - Kosovo Banking Association

About IFC

IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.

About SECO

The State Secretariat for Economic Affairs (SECO) is the federal government`s centre of excellence for all core issues relating to economic and labour market policy. It is its aim to contribute to sustained economic growth, high employment and fair working conditions, by creating the necessary regulatory, economic and foreign policy framework. SECO has supported and funded also economic development programs and projects in Kosovo since 1998. For more information, visit: www.fdfa.admin.ch/countries/kosovo/en/home.html or https://www.seco-cooperation.admin.ch/en