Mobile comms giant adds to financial services arm with first own-operation
The Telenor Group has opened its first wholly-owned financial institution, Telenor Banka in Serbia which offers mobile banking services to customers in Serbia. This marks a milestone for the company’s plans and strategy to grow in the online financial services and mobile banking market in Europe, it says.
According to Telenor’s estimate, the Serbian market with 7 million people represents a huge potential for the future as currently almost 80% of transactions in the country are performed in cash.
Telenor says is an important step forward and shows its commitment to mobile payment market in Europe. Last year Telenor, which has been present in Serbia since 2006, acquired KBC Banka. In Norway Telenor is active in the mobile payments sector as it partners with the local banks and offers the mobile wallet and cashless payment Valyou and the mobile BankID solution.
Outside Europe, Telenor also co-owns Pakistan’s mobile money entity Easypaisa which monthly serves over 6 million people, it says.
In Serbia, Telenor banka’s customers will be encouraged to open their account via Telenor service shops across the country. Also, the new bank hopes to attract more customers by providing interest and alternative to the traditional post-offices with bills payments. The clients will also get an access to fully online banking and mobile banking services.
For this development, Telenor partners with MasterCard and the bank’s customers will be offered an access to money withdrawals and deposits through both bank’s own and other ATMs, it says.
“Telenor banka is an example of how we can contribute to the digitalisation and development of society, while at the same time responding to the needs of individuals by offering simple and on-the-go mobile solutions. Mobile financial services are key to our Internet for All strategy, an ambition to connect the unconnected and built on our belief that the internet is for everyone. The mobile phone is the essence to simpler money transfers, readily accessible saving accounts, new methods of bill payment and even insurance products,” says Telenor Group President and Chief Executive Officer Jon Fredrik Baksaas.
“The launch of the bank in Serbia is conducted in close cooperation with Serbian authorities and represents a significant step in the company’s financial service history. We are currently also evaluating the establishment of financial services in other Telenor markets in Europe. As market conditions vary across Europe, the approach might be different from the one in Serbia,” adds Kjell-Morten Johnsen, EVP and Head of Region Europe, Telenor.