Best bank: Tatra banka
Like in the neighbouring Czech Republic, foreign groups own all five of Slovakia’s top five banks. And like in the Czech Republic and elsewhere, higher interest rates have brought higher profits – and new taxes on banks, in Slovakia’s case following the formation of a new government in October last year.
Judged on their 2023 financial performance, all of Slovakia’s largest banks are doing well, but Tatra banka – owned by Raiffeisen Bank International – beat the competition this year to win the award for Slovakia’s best bank, after a two-year break.
Tatra banka, whose chief executive is Michal Liday, stands out firstly for its profitability. Its return on tangible common equity reached 18% in 2023. Its net income grew by 22% to €237 million. The cost-to-income ratio also improved, falling to 44%.
Meanwhile, the bank remains a clear leader in the field of digital technology – whether in finding new ways to capture young clients, in cyber-security innovations, in digital banking for small and medium-sized enterprises and mortgage borrowers, or in rolling out open-banking solutions.
One illustration of that culture is the 2023 introduction by the bank’s innovation department of a new idea-management platform, IDEApp, available to all Tatra banka staff whether at head office or in the branches.
At the time of the bank’s awards submission, it counted 164 ideas from 101 contributors. Three of these were in the prototyping phase, two at a minimum viable product stage, and two at a minimum marketable product stage. While most of the ideas encourage the bank to put its own spin on approaches followed elsewhere, 14% are entirely new to Tatra.
Best digital bank: 365.bank
365.bank added new products, innovative payment methods and functionalities to its offering in 2023.
A new mobile investment product named Squirreling Money Away allows its users to invest in rounding up payments. New forms of smart payments have been added in the form of rings, bracelets, key chains and even analogue watches.
Customers can now apply for a pre-approved loan through the app. Biometric login has been improved and a new library for reading QR, IBAN and BAR has been added to the app. The use of biometric signing increased from 30% to 80% of clients in 2023.
The digitization strategy has made savings of €1 million a year through initiatives such as introducing tablets at branches that use 80,000 pieces of A4 paper to open accounts. Around 1.7 million physical documents that would have had to be stamped now no longer need to be.
Best bank for SMEs: Tatra banka
Tatra banka introduced the ability for its small and medium-sized enterprise clients to use their enterprise identification number to get financing online last year – becoming the first bank in Slovakia to offer this integration. The entire loan application process is now digitized.
Tatra Bank also launched its Digital Business Account for sole traders in 2023. This means that almost 75% of businesses in Slovakia can open an account in less than 15 minutes using only an ID card. The launch has proven popular and accounts for 50% of new business clients.
The bank also updated its credit and debit card online management tools in its mobile banking app and online platform. SMEs now can manage card limits, regions where the card can be used and remit outstanding sums.
The bank has also introduced a new digital process for business loans, targeting self-employed individuals and sole traders. Applicants can calculate loan offers using publicly available data and continue with the application in Tatra bank app, including digitally signing loan agreements. Around 91% of users in the micro segment have adopted this solution.
Best bank for ESG: Slovenska sporitelna
Slovenska sporitelna is a leading issuer of green bonds in Slovakia. In 2023 it issued €300 million in green bonds, having issued €750 million prior to this.
It also realigned its sustainability strategy, targeting green investments to account for a quarter of its corporate business by 2026, having 15% of the mortgages it provides be green mortgages by 2027 and reaching net zero by 2050.
The bank has a strategy to achieve an 80% decrease in greenhouse gas emissions by 2030. In 2023 it made investments to improve the heating system in its headquarters building. This included installing a heat pump, recovering waste heat from the building’s servers. This achieved a 48% reduction in its natural gas consumption.
Best bank for corporate responsibility: Ceskoslovenska obchodna banka
Ceskoslovenska obchodna banka (CSOB) initiated partnerships in 2023 aimed at revitalizing public spaces around Slovakia and promoting science, technology, engineering and mathematics (STEM) subjects. The bank also financed various other initiatives around the country, including one with local libraries.
The bank became the main partner of Dobrý trh (good market), a Slovakian organization creating events to revitalize public spaces. The events created by the partnership help support small producers who sell local products and products of from diverse Slovakian groups.
The bank was also a partner in a public event promoting STEM subjects and focused on how science affects peoples in their everyday lives. The event attracted and impacted a total of 150,000 people.
CSOB issued a digital grant last year that provided financing to help local libraries create digital library cards with the aim of boosting access to education.
Best bank for corporates: VUB banka
VUB banka grew its market share in Slovakian corporate banking last year. Loan volume was up by 4.5% at the bank level and by 9% at the group level. Its market share in corporate loans went up to 19.3%. Its leasing business, previously a subsidiary of VUB Leasing, recorded growth of 13%.
The bank was the sole financial partner to a Japanese-European research project to develop a nuclear fusion reactor. The project will see many the components produced in Slovakia for the reactor, which is in Japan, and it could have a substantial impact on international energy supply.
