Influencing change: Raiffeisen’s impact on growing Kosovo's formal economy

In the dynamic landscape of Kosovo's economy, Raiffeisen Bank is dedicated to promoting inclusive and sustainable economic growth. Recognizing the significance of financial inclusion, the bank plays a key role in supporting individuals and businesses to seize opportunities within the formal financial sector by providing convenient access to its services.

Since commencing operations in Kosovo in early 2000s, Raiffeisen has not only established an extensive branch network for better accessibility but has also spearheaded the development of digital payment systems, adapting to the ever-evolving landscape of modern banking.

Embracing the formal financial system brings numerous advantages to individuals and businesses, such as access to credit, heightened security, and minimized transaction costs.

Here are several aspects of the bank's contribution to integrating Kosovo's society into the formal economy:

Large branch network – One of the key contributions of Raiffeisen Bank has been expanding the reach of banking services across the country. The bank has established a wide network of branches and ATMs, making financial services easily accessible to people in both urban and rural areas. This has been crucial in bringing banking services closer to the population and encouraging their participation in the formal financial system.

Promoting digital means of banking - In an era dominated by digital transformation, Raiffeisen Bank is at the forefront of advocating for and providing state-of-the-art digital banking and payment solutions. These efforts are geared towards reducing the reliance on cash transactions, which are a hallmark of the informal economy, thereby fostering a culture of formal, traceable, and secure financial transactions.

Financial education and literacy - Understanding the complexities of the formal economy can be challenging. Raiffeisen Bank invests in financial education and literacy programs aimed at educating both individuals and businesses about the advantages of operating within the formal economy. These programs cover critical aspects such as access to basic account services and access to credit and being creditworthy.

Supporting SMEs - Small and Medium Enterprises (SMEs) form the backbone of Kosovo's economy. Many of these enterprises operate partially in the informal sector. Raiffeisen Bank offers customized financial products and services tailored to the unique needs of SMEs, encouraging them to transition into the formal economy and thereby benefit from greater financial and legal security.

Collaborating for Economic Formalization - Recognizing the significance of formalization, the bank has been open to supporting initiatives aimed at fostering economic formalization, coming from various stakeholders.