El contexto europeo

At the end of the first quarter in 2013, 32 banks were doing business in Serbia. Banks owned by foreign entities continue to have a dominant share in the banking sector by approximately 75% of the assets and profit of the banking sector. Banks which originate from the European Union have the share of 70.7% (69,2% from countries where euro is used) and the banks originated from Russia and USA have the share of 3,6% and 0,3% respectively. While the relation of asset to capital according to the origin of ownership in banking sector is almost the same, banks owned by domestic entities (primarily state-owned banks) still have more developed branch network, as well as a larger number of employees, i.e. 36% of the organizational network and 28, 4% workforce in contrast to 25,4% share in balance sheet and capital. Of the total number of banks, 22 of them operated with a positive result that is a total of 12.63 billion dinars, while 10 banks operated with losses of total 1.78 billion.

Financial services that are performed in the units of postal network in the Republic of Serbia can be divided into:

▪ services performed in the name of post and for their own account, ▪ services performed on behalf of the bank and for the account of bank.

Post performs various financial services as a part of their own business to private and legal entities, in accordance with the regulations governing this area (laws, regulations, manuals, price list etc.) and contracts signed with clients. Services performed by post but on behalf and account of bank are also regulated by general laws, special agreements with banks, as well as internal regulations, which were adopted by both the bank and post office for the performance of these services.

3.1. Analysis of the involvement of people in the financial sector

For the purposes of this study, 419 inhabitants of the Republic of Serbia were surveyed of whom 191 (46%) were males and 228 (54%) were female. The average age was 36 years. The oldest respondent was 72 years old and the youngest 19 years old. The graph 1 shows the number of respondents by age.

Graph 1. number of respondents by age

Graph 2 shows the number of respondents per the administrative districts of the Republic of Serbia. The largest number of respondents came from the South and West Backa District (277). Although the survey included the respondents from other districts (133), as well as residents of the Republic of Serbia whose permanent place of residence is outside the Republic of Serbia (9).

Graph 2. respondents by place of residence

Of total 419 respondents, 162 (38.66%) are employed in the public sector, 63 (15.03%) are employed in the private sector, 7 (1.67%) are entrepreneurs, 168 (40.09%) are unemployed and 19 (4.53%) are retired. Confidence in the banking sector has presented 222 (53%) respondents. 102 respondents are satisfied with their financial situation, while a higher number is not satisfied (319 respondents). Another interesting fact is that 40 out of 168 unemployed persons are satisfied with their financial situation. This fact indicates that these people make significant income while unemployed in the form of gifts, income from property, and income from deposits, insurance fees, scholarships and other.

220 respondents regularly receives income from employment (of which 28 respondents have other sources of income), 42 respondents have income outside regular employment occasionally working on contractual basis (of which 16 respondents have other sources of income). 36 respondents receive pension, of which 19 receive old-age pension and disability pension, while others receive survivor pension, and belong to the group of unemployed persons (those are usually students and persons who earn income outside of employment). Public aid (welfare, material benefit, alimony, child support, scholarships) receives 44 respondents and they also have other forms of income such as gifts and awards. Solely from gifts and gains, 46 respondents generate income. 373 respondents have bank accounts, while 46 respondents do not have a bank account. It is also indicative that the of 46 respondents who do not have accounts, 22 of them receive earnings from casual employment in cash, while 14 respondents receive money from pensions and public through money order.

Of the total number of respondents, 268 are partially satisfied with the services of banks in Serbia, while 58 respondents are not satisfied with the service. Even though 9 respondents have not used banking services, but the number of those who used several different banking services (current accounts, loans, electronic banking, etc.) is bigger than this. 17 respondents use cards to pay over the Internet, 89 own credit cards, while 190 respondents use debit cards. Credits that are most commonly used are: cash loans (50 respondents), residential (27 respondents), consumer (19 respondents). Electronic banking is used by 59 respondents.

At the same time, respondents were asked about the services they are unable to use and there is a demand for these services. Therefore, 74 respondents are in need of e-banking services, but need more information about those services, and 115 respondents are in need for some form of credit, but their personal financial situation or the conditions under which these are granted, does not allow their use.

3 11 36 77 ₆₆ 82 144 0 100 200 1930-1939 1940-1949 1950-1959 1960-1969 1970-1979 1980-1989 1990-1999 2 10 172 5 19 2 1 9 2 47 6 7 105 23 ₉ 0 50 100 150 200

Respondents have listed reasons for not using banking services and those can be broken down as follows:  no need for additional services (45)

 inadequate working hours of banks (29)

 The Bank has no branch in their neighborhood (5)  lack of information about the services of banks (125)  poor personal financial situation (172)

 bad portfolio of banking services with high commission and bank interest (14) 3.2. User expectations of the financial sector

Respondents expect the banks to decrease bank interest and commission (154). Mainly, people expect lower interest rates on cash loans and overdrafts. Then, credits without interest and loans to pay for food for the winter, fuel, utility costs (heating and electricity), taxes and other costs incurred in order to satisfy the existential and basic needs. Greater availability of insurance (health and pension) is expected on behalf of 10 respondents.

A larger number of respondents (203) believe that the post office can provide greater availability of financial services (Graph 3).

Graph 3. Do you think that post can provide greater access to financial services? 3.3. Assessing the role of post in the development of financial sector

Respondents use certain payment services regularly and give priority to the use of these services at the post office in relation to the bank (for example, payment of utility bills). Graph 4 represents services that respondents regularly use that are provided by the post office.

Graph 4. Services that customers regularly use in the post

Certain aspects of postal financial services (cash operations) such as speed of service, professionalism of staff, ease of execution, range of products and service quality, respondents have assessed as satisfactory, and the price of services as moderate in relation to quality. Availability of service information is satisfactory, as well as availability of forms and the speed and efficiency of handling documents.

Respondents believe that the post has yet to act in order to improve each of these aspects. However, compared with banks, post has a similar starting position (Figure 5).

Graph 5. Comparison of post and banks in the RS

0 100 200 300

No Yes Maybe No Answer

0 50 100 150 200 250 300 Payment on Account Account Payout Electronic Money Order Payment of Utility Bills Western Union Savings Payout Current Account Services at PSB Payout of Student Loans

Cash Express ATMs

0 100 200 300

WORSE APPROXIMATELY THE SAME

A LITTLE BETTER A LOT BETTER I DON'T KNOW SPEED OF SERVICE PROFESSIONALISM OF STAFF PRICE OF SERVICES

3.4. Perspective of post and redesign of postal financial services

Based on different evaluation of respondents and valuing resources of post, such as:

 Developed ICT solutions (computer network PostNet, technological application solution PosTis, the certification body of the Post, participation in e-government project, etc);

 Postal network with approximately 1,500 locations throughout the RS;

 Contractual relationships with banks, utilities and other organizations and institutions, we have concluded that the process of financial via Post of Serbia can be implemented.

The following arising question relates to the choice of model which will be used. So far, posts in the RS have not performed full set of contractual business/obligations/agent services for banks (credits, savings, issuing credit cards etc.).

Its operations have primarily been based on cooperation with the Postal Savings Bank, which is an independent business entity. Apart from the expansion of the network and services of the Postal Savings Bank, the issue of providing banking services to vulnerable population and that in rural areas the RS, which are geographically and economically excluded from the financial services sector, still remains unsolved. Post in RS, in the process of financial inclusion should improve the quality of existing financial services, customer relationship and ensure provision of new services such as:

 service of user profiling of favorable financial services based on e-government, with the aim of reducing the cost of obtaining the necessary documentation from different parts of the administration (land certificates, proof of unemployment, confirmation of the amount of social benefits, the number of household members, etc.).

 services for vulnerable and poor population - loans with no interest or loans with a lower interest rate for food, clothing and footwear, housing costs and treatment, based on the earned income (public aid, welfare, scholarships, etc.);

 insurance services, primarily health care and retirement, with the possibility of savings and access to funds prior to the expiration of the insured period (bearing in mind the social profile of the user).

This approach requires a broader initiative with the support of the government and the financial sector. Current provision of this type of services by post is only possible through a contract with banks on the performance of agent activities, and participation of state funds for subsidizing these types of crediting and e- government services.

Another possibility is that post performs these services without a license or to be provided with a banking license to a limited set of services.

4. CONCLUSION

Development of the financial sector in the Republic of Serbia in the future will depend on availability of certain financial services and opportunities that a large part of the population becomes involved in regular financial flows. If the current trend still continues, there will be a reduction in the number of branches of banks, and greater geographic exclusion of the population. Post as a provider of financial services and a public postal network as a resource, this can quickly stop this trend and assist in the implementation of services for socially deprived part of population.

In further research, it is necessary to define the criteria for profiling users of financial services and to determine the set of services that will optimally meet their needs.

REFERENCES

Abdallah, F., Shakurova, Y. (2012). Measuring postal e-services development, Universal Postal Union., Bern.

Berthaud, A., Davico, G., (2013). Global Panorama on Postal Financial Inclusion: Key Issues and Business Models, Universal Postal Union, Bern.

Kavanagh, J. (2013). Financing Services of General Economic Interest: The European Commission’s Economic Tests, Financing Services of General Economic Interest Legal Issues of Services of General Interest, 149-159.

Leonelli, L. (2002). The Posts: a Full Range of Payment Services, Modernisation and Privatisation of Postal Systems in Europe, 175-211.

Mylenko N. (2010). Measuring Access to Financial Services, Access Finance Newsletter No. 30, The World Bank.

Petrović-Vujačić, J., Kaplanović, S. (2012). Uloga poštanskog sektora u procesu finansijske inkluzije, XXX Simpozijum o novim tehnologijama u poštanskom i telekomunikacionom saobraćaju – PosTel 2012, 51-58, Saobraćajni Fakultet, Beograd.