IFC has partnered with the Central Bank of the Republic of Kosovo (CBK) to develop and expand digital financial services in the country. The initiative is part of a broader IFC effort to strengthen the country’s financial ecosystem and foster better access to financial services and stronger economic growth. Kosovo is the first among the four Western Balkans countries included in the project to sign the cooperation agreement.

IFC, in partnership with the Swiss Secretariat for Economic Affairs SECO, will help CBK implement key financial sector reforms, including a draft law on payments services, and promote open banking initiatives. These efforts are designed to create a more enabling regulatory environment, allowing financial market participants in Kosovo to develop innovative products and services to meet the needs of individuals and businesses.

The project goals include promoting financial inclusion by driving investments in digital banking, fintech, embedded finance, and venture capital and private equity. It focuses on policy and infrastructure reforms and it will also facilitate $45 million in financing from IFC and other private investors for banks, microfinance institutions and fintechs across the region. In Kosovo, these efforts are expected to ease access for businesses and consumers to a range of digital financial services.

On the occasion of signing the agreement, Ahmet Ismaili, the Governor of the CBK, said: “This agreement marks a significant step forward in our strategic plan and objectives of advancing digitalization, improving market infrastructure, enhancing access to finance, and promoting financial education. We are grateful for the support of IFC, and we believe that this collaboration will be instrumental in advancing our digital financial ecosystem that fosters innovation while maintaining robust regulatory standards.”

The partnership also emphasizes capacity-building efforts: IFC will provide training to CBK employees on global best practices in digital finance, helping ensure that the country’s regulatory framework evolves in line with international standards, fostering innovation and trust in the financial system.

“Digital transformation creates new opportunities for development, institutional capacity building, and innovation. It also accelerates critical reforms and enhances transparency and accountability. Switzerland supports Kosovo in these efforts,” said Jean Christophe Favre, Head of Sustainable Economic Development at the Swiss Embassy Cooperation Office in Pristina. “The IFC-implemented Digital Financial Services Programme, in cooperation with the Central Bank of Kosovo, aims to promote financial deepening by advancing digital finance foundations, encouraging innovative solutions and financial technologies, and fostering inclusive growth. This will benefit both private and public sectors, as well as the people of Kosovo.”

“Digital transformation is a cornerstone of Kosovo’s economic strategy, and affordable digital financial services are essential for promoting economic resilience and reducing poverty,” said Nicolas Marquier, IFC Regional Manager for the Western Balkans. “By leveraging our global expertise, IFC is committed to supporting the Central Bank of Kosovo build a dynamic and competitive financial sector that can drive inclusive growth.”

To discuss advances in digital banking in Europe, attend talks and network with industry leaders, attend the Innovatrix 2nd Client Onboarding and Digital Identity Summit for Financial Institutions in Prague, Czech Republic, on September 18–19, 2024. 

For more information, visit our website or email us at info@innovatrix.eu for the event agenda. 

Source:

International Finance Corporation