Q. As an international banking institution, ProCredit Bank has a huge experience of working in countries currently integrating into the European Union. What will be the main changes for Georgian customers after joining European Union? (Possibly lower rates? Better access to finance?) Please give details.
A: ProCredit Bank recognizes the significance of sharing the European experience with Georgia and the advantages of being a member of the European Union. As an international banking institution, ProCredit Bank has extensive experience in countries integrating into the EU, allowing us to introduce innovations in the banking industry. Membership in the European group provides constant links to European approaches and standards, making us a model example for the banking sector.
The benefits of EU membership will bring substantial changes for Georgian customers, including enhanced access to financing and better opportunities for the development of the green economy. ProCredit Bank, as a member of the ProCredit Group, can provide significant advantages to small and medium-sized businesses by partnering with EU organizations such as EU4Business, EIB, EIF, and EBRD. This will extend access to financing and special guarantees, contributing to the growth and expansion of the business sector.
A stable partnership with our target customers and long-term financial support is crucial for the growth and prosperity of our community. At ProCredit Bank, we strive to maintain this relationship by offering our expertise and assistance to our customers to help them achieve their financial goals. Our membership in the European group further strengthens our commitment to responsible banking practices, enabling us to bring European experience and standards to Georgia. With this approach, we aim to provide a diverse range of options to our customers and establish ProCredit Bank as a reliable partner for their financial needs.
Q. What are the current challenges for ProCredit Bank Georgia?
A: ProCredit Bank has been successfully operating on the Georgian market since 1999. ProCredit Bank is a commercial bank with a focus on development. We provide outstanding customer service to small and medium-sized businesses and private individuals with a capacity to save who prefer to conduct their banking via electronic channels. The past 24 years of ProCredit Bank’s operations in Georgia is filled with challenges and achievements. A responsible financial institution’s role has always been to facilitate the development of small and medium-sized enterprises (SMEs) operating in Georgia by providing them with access to financing, given that SMEs are the ones who actually create jobs and help reduce unemployment rates, which is a prerequisite for sustained economic growth in the country. In addition to financial access, ProCredit Bank provides SMEs with a range of banking services, that are tailored to their needs.
It is also essential for a bank with European values that its partners share the ProCredit group’s corporate values and endeavor to conduct their operations in accordance with ethical and environmental standards. Therefore, we provide them with green financing opportunities. Multiple positive outcomes may result from sustainable investment, including improved efficiency, savings on expenses, and a positive impact on the environment. By applying a similar strategy, our objective is to promote the green economy development in the country, which continues to reach higher levels each year; however, the potential is much greater, and we intend to transform the challenge of conducting green business into a unique opportunity for Georgian businesses.
ProCredit bank’s approach to encourage saving culture and deposits from customers involves offering transparent and simple savings products with competitive interest rates, as well as advice to help customers develop a savings habit and achieve their financial goals. This customer-centric approach has helped ProCredit bank establish a reputation as a reliable and trustworthy financial institution that prioritizes the interests of its clients.
Q. How do you foresee ProCredit Bank Georgia’s position in the local market and the bank’s priorities over the next years?
A: ProCredit Bank is a solid, reliable, and long-term financial partner for our target market, small and medium-sized businesses, within all countries where the ProCredit group has a presence.
Over the course of our extensive history of operation, we have recognized and embraced our role in the financial market as a European values-driven institution, committed to conducting business in a responsible manner. The bank is positioned as a digital SME and retail bank, with an emphasis on cultivating a savings culture and responsible consumer financing. We are confident in our ability to enhance our market position by prioritizing our customers and leveraging European expertise on the Georgian market.
Q. What are the main risks facing banks in 2023?
A: Over the years, we have learned how to transform challenges into opportunities for success. As a financial institution with 24 years of experience working alongside Georgian businesses, ProCredit Bank benefits from the backing of a robust European holding company. This gives us the assurance to provide our clients with secure, transparent, and client-centered services. The digital transformation continues to be the subject in the banking industry, a viewpoint shared by ProCredit, and we continue to enhance our digital services, such as internet and mobile banking.
Q. The traditional banking culture has been criticized for failing to keep pace with the requirements and preferences of customers and employees. Customers want banks to do more than just offer a functionally correct set of services and safeguard their money; How ProCredit Bank Georgia responds to these trends?
A: ProCredit Bank has been a catalyst for change in the traditional banking industry, pushing the boundaries of what banking services can achieve. A few years ago, we recognized that the bank was not just a physical location but could also thrive in the digital space. We developed online channels to provide our customers with more freedom and independence, which was a departure from the traditional banking experience where customers would visit branches, wait in queue, and spend significant amounts of time there.
This transition to digital channels was not easy, as customers were accustomed to the traditional model. However, we recognized the need for change and adapted to meet their evolving needs. By embracing a customer-centric approach and leveraging modern European experiences, we were able to provide our customers with the comfort and convenience they desired.
Although we have already made significant strides in developing remote service channels, we are continuously improving our digital banking services to ensure they meet the needs and preferences of our customers. We recognize that the banking industry is constantly evolving, and we are committed to staying ahead of the curve by offering innovative solutions that provide added value to our clients.
Q. As big techs and super-apps continue to grow, what will be the position of ProCredit Bank in this new world?
A: The financial industry has undergone a significant transformation in recent years, with the integration of technology becoming increasingly essential. In retail banking, customers prioritize convenience and speed, and at ProCredit Bank, we strive to provide innovative digital solutions that enable our customers to manage their finances from anywhere, at any time.
It’s important to note that our SME customers place value not only on technology but also on expertise and a stable, long-term partnership with their bank. They need a reliable financial institution that can provide competent advice and consultations. At ProCredit Bank, we understand that the human factor is essential in providing a positive customer experience. Our staff members are trained to be knowledgeable, professional, and represent the bank’s image to our customers.
With our strong European ties and experience, we are committed to providing our customers with the best of both worlds: innovative technological solutions and expertise. We believe that a combination of the two will enable us to build stable, long-term partnerships with our customers, ultimately leading to their financial success.
Q. Do you think that open banking will improve customers’ access to financial resources?
A: The Open Banking service has gained significant popularity across Europe, and as a member bank of the European group, ProCredit bank recognizes the importance of implementing similar practices in Georgia. Open Banking provides access to data that creates new opportunities for all parties involved. By offering customers access to a wider range of products and services in one place, they can receive services that are tailored to their specific needs. Moreover, Open Banking promotes competition in the financial sector, which drives innovation and leads to positive advancements in the industry. At ProCredit Bank, we believe that Open Banking is an important step in building stable partnerships with our customers and providing them with long-term financial support. We understand the importance of European expertise and continuously strive to adopt best practices to better serve our customers.
Q. Do you see any issues or difficulties in terms of competition in the Georgian banking sector?
A: At ProCredit Bank we understand the importance of robust competition in the proper development of any sector, including banking. To position itself in the market and offer customers a variety of options, it is crucial for the bank, and for other businesses, to choose its niche carefully. Ultimately, customers will decide their banking priorities and select the most suitable financial institution.
At ProCredit Bank, we prioritize responsible banking activities that incorporate a value chain in our business philosophy. This approach sets us apart from other banks and makes us stand out. Our culture of transparent communication and ethical approaches aligns with our belief that values are the foundation of business and remain constant even in a changing environment.
A stable partnership with our target customers is vital in this regard. We strive to maintain long-term financial support and extend our expertise to assist our customers in achieving their goals. Through our membership in the European group, we bring European experience and standards to Georgia, which further strengthens our commitment to responsible banking practices. With this approach, we aim to provide a wide range of options to our customers and establish ProCredit Bank as a trusted partner for their financial needs.
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