Most of the players on B&H market do not understand that becoming a digital bank is significantly more than simply providing online and mobile functionality. Becoming a digital bank is a process that involves employee activities and behaviour which is not the case with most of the banks on B&H market;.
Even though most of the banks promote the usage of digital channels, employees often see the process differently. It seems that their staff is concerned about the impact of automation on their job. For this reason employees are mostly passive and do not promote digital channels unless the client asks. If they want to move towards the digitization, the main players on the market need to seriously consider organizational changes and educate or replace some employees;.
Analyses suggest that pricescosts for bank services play a central role in the consideration to switch banks. Most of the players in the market offer an extremely low account maintenance fee on the current account only. All other services are charged extra, so that ultimately the client is not sure what hishis/her monthly bank charges are. Clients in Bosnia and Herzegovina lack financial literacy to understand all the costs they pay to thetheir bank. This is the main reason why they are not ready to change the bank;banks.
Taking into consideration the strategy of financing their clients, Banksbanks are finding it hard to implement the digital way of banking. Since Banksbanks on the B&H market service a huge amount of clients with no specific target group, directing towards digitization would mean losing a amountnumber of these clients – something that Banksbanks are not ready for.