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One of the panels at our recent annual conference in Budapest explored supply chain finance in the CEE especially the smaller emerging market countries. Chaired by Maria Mogilnaya of EBRD, one of the panelists and a very recent ITFA joiner, Banka për Biznes, explained how, when dealing with micro segment clients, data analytics overcame one of the main barriers for growth being their inability to create scale in their supply chains thus preventing improved sale-margins. A competitive edge was missing in many cases.

So was born the cluster approach service, called Supplier’s Club, which was introduced for the first time in Kosovo, and proved to be one of the most innovative business platform yet seen in the sector. In essence, BPB has “married” suppliers and buyers in specific industries using its understanding of trade flows and credit profiles in a way which would have been unachievable for such small firms and cementing these relationships by providing finance through an innovative technology light platform easily useable by all the parties. Experienced Business Client Advisors accompanied head office business managers, negotiated better terms and deals for clients, to show that BPB was interested in both financing and in providing flexible and advanced banking solutions.  The platform empowers BPB to link suppliers with the buyers. By being a client of BPB, the micro client is entitled to get a better value in terms of pricing from his own suppliers, while the suppliers will have a channel to communicate with buyer micro clients in groups that are managed by us. Invoices are settled by BPB acting as an intermediary in financing working capital in a fast and efficient process flow. This is achieved through a platform through which suppliers of the same industry are connected and all of them have access to the approved limits of their buyers via SMS notification. Additionally the SMS channel provided for this type of transactions works both ways, by enabling micro buyers to initiate, confirm and inform the supplier that the payment is made. The platform is free in terms of service and transaction fees, and it even has an in-built waiting period of time without interest for settlement of the invoice, which was carefully calibrated by analysis of transactions done through BPB. This win-win triangle has started to pick up and new micro clients are joining the bank to source their supplies through the club thus linking physical and financial supply chains. BPB has already introduced targeted Suppliers Clubs for industries where it has the greatest critical mass of suppliers and buyers. One such recent club will be underpinning supplies for more than 100 clients where the bank has approved limits.

Banka për Biznes operates with 26 branches and 38 ATMs throughout Kosovo with around 350 employees. As of June 2019, BPBs loan portfolio has reached around 178mio EUR with 232mio EUR deposits, resulting in 3.1mio EUR NET profit.

Cost to income ratio has decreased to 53.20% from 56.5% in 2018. The loan to deposit ratio in the bank as of June 2019, is 76.97%, positioning our bank very well in the market. Capital adequacy ratio is 15.20%, however the NPL is as low as 3.05%.

The coverage ratio is 114.50%, whereas the ROE is 19.32. The NET profit in relation to number of staff is 127.53%.