Open Banking in Croatia

Open banking in Croatia - Nordigen

In September 2019, PSD2 went live in the EEA. Croatia has been considered the next fintech destination in Southeast Europeand Croatian banks already offer open banking.
 

What is Open Banking and PSD2? 

Open banking is banking practice that securely shares financial information such as consumer banking, transactions and other financial data to third-party financial service providers (Estevez, 2020). Sharing data is done through the use of application programming interfaces (APIs) and only with the consent of customers (The Balance, 2020). Open banking is the drive behind both innovation and competition in the financial industry (Cahill, n.d.). 

PSD2 is a European Directive that regulates electronic payment services, was implemented in all EEA countries in 2016 and went live in September 2019.
 

Open Banking in Croatia

Croatia has been considered the next fintech destination in Southeast Europe. The Croatian market has great potential for local businesses to gain a competitive advantage due to the vast amount of talent found in the fintech market (The Dubrovnik Times, 2021). Croatia may only have a population of 4 million yet it has over 30,000 active professionals in the tech industry (The Dubrovnik Times, 2021). Furthermore, there has been a collaboration agreement signed between Croatia and Israel with the aim to bring more investment, opportunities and innovation into the fintech sector (The Dubrovnik Times, 2021). 

Croatia is a member of the EuroHPC Joint Undertaking and has signed the Declaration on cooperation on AI in 2018 (DESI, 2020, 11). In 2019, Croatia joined the European Blockchain Partnership and has a plan to launch a variety of initiatives regarding artificial intelligence (DESI, 2020, 11). Croatia also has the Innovation Centre Nikola Tesla that works on boosting Croatia’s high-tech economy (DESI, 2020, 11). 

Of all Croatian citizens using the internet, 59% use the internet for online banking, which is 7% below the EU average (DESI, 2020, 9). Additionally, on integration of digital technologies, Croatia ranks 12th among EU countries (DESI, 2020, 10). Furthermore, Croatia ranks 25th in the EU for digital public services (DESI, 2020, 12). 

Croatia has a total of 24 banks, the largest of which include Zagrebačka banka and Privredna banka (Starcevic, 2020). 

How Does Open Banking Work?

Open banking uses an API that allows financial institutions to exchange financial data, usually through a third party-developed application (Estevez, 2020). These applications are developed by up and coming FinTech companies with the mission to improve digital banking.

To access and use the open banking APIs in Croatia, you will need to acquire an account information service provider license, issued by the relevant authority. Furthermore, you will require a relevant certificate (QTSPs or eIDAS), compliant with PSD2 requirements. Alternatively, you can use an open banking platform, such as Nordigen.

References

The Balance. (2020, October 11). What Open Banking Is and How It Will Affect You. https://www.thebalance.com/what-is-open-banking-and-how-will-it-affect-you-4173727

Cahill, H. (n.d.).InvoiceFair. The Evolution of Open Banking: Connectivity breeds digital competition. https://invoicefair.com/the-evolution-of-open-banking-connectivity-breeds-digital-competition-081118/

The Dubrovnik Times. (2021, April 6).How Croatian FinTech is Leading the Way. The Dubrovnik Times. https://www.thedubrovniktimes.com/lifestyle/feature/item/11238-how-croatian-fintech-is-leading-the-way

DESI. (2020). Croatia.Digital Economy and Society Index (DESI) 2020, 1-13.

Estevez, E. (2020, August 27).Open Banking. Investopedia. https://www.investopedia.com/terms/o/open-banking.asp

Starcevic, A. (2020, December).Croatia’s banking sector: Facts & Figures. EBF. https://www.ebf.eu/croatia/

Stojkovski, B. (2020, August 20).Croatia’s Burgeoning Fintech Scene Blazes Trail For Western Balkans. Balkan Insight. https://balkaninsight.com/2020/08/20/croatias-burgeoning-fintech-scene-blazes-trail-for-western-balkans/


Banks

Here is a list of major banks providing Open Banking in Croatia

Providers

Here is a list of major open banking platforms in Croatia

Instantor

Instantor is a account aggregator and credit analytics company using screen-scraping. They were acquired by Tink in 2020.


Nordigen

Nordigen is an authorised Account Information Service Provider. We provide free access to bank data and premium data insights, using regulated PSD2 connections.