Beyond the loan portfolio – Iute Macedonia’s CEO with an expert overview for Bloomberg Adria, on what nowadays defines competitiveness

“The future will belong to institutions that can successfully bring together three essential pillars – innovation, trust and regulatory compliance”, Biljana Mishikj

How would you assess the state of the non-banking industry in the first half of the year? Do the numbers indicate growth in lending activity, demand and profitability, and what are the main drivers behind these trends?

The first half of the year has shown that the sector is entering a new phase of development. In the past, the main indicator of success was the volume of lending. Today, however, the quality of the portfolio, digital maturity, diversification of revenues and the ability to secure sustainable sources of capital are becoming equally, if not more, important.

Despite more moderate growth in lending activity, which is a natural consequence of higher regulatory standards and more prudent risk management, demand for digital financial services remains strong. In the first quarter, financial companies recorded growth of around 16%, which is broadly in line with the growth in retail lending by banks.

This growth is driven by changing customer expectations. Customers increasingly expect financial services to be available without administrative barriers, at any time and directly through their mobile phones.

But the most interesting change is not on the customer side. It is happening within the financial institutions themselves.

We are seeing increasing diversification of funding sources through corporate bonds, domestic and international capital market instruments, institutional investors, as well as the development of proprietary payment platforms where the regulatory framework allows it.

I am particularly encouraged that the Macedonian market is beginning to recognize corporate bonds as a modern financing instrument. This is a positive signal not only for financial companies, but also for the development of the domestic capital market.

Having access to multiple sources of financing means greater resilience, stronger liquidity and a greater capacity to support economic growth.

Going forward, competitiveness will not simply be measured by who has the largest loan portfolio. It will be determined by who has the best technology, the lowest operating costs, the most advanced analytical models and the most diversified funding structure.

Digitalization is becoming a key factor in the industry. Are non-banking companies today among the main drivers of fintech innovation and the modernization of financial services in Macedonia, and how are they changing the competitive landscape with traditional banks?

Absolutely. Today, we can no longer look at the non-banking sector simply as lending institutions. They are gradually evolving into fintech companies that combine lending, digital payments, electronic money, insurance, analytics and artificial intelligence within integrated financial ecosystems.

The nature of competition has also fundamentally changed.

It is no longer simply a competition between banks and financial companies. It is a competition between different digital models and different customer experiences.

Customers expect financial services to be instant, transparent, personalized and available 24/7.

In this process, financial companies have one important advantage: organizational agility.

They can adopt new technologies faster, without the burden of legacy infrastructure. They can test new products, adapt their business models and respond to changing customer needs much more quickly.

The next stage will be the integration of lending, payments, digital wallets, insurance and loyalty programs into a single mobile platform.

This is no longer just a vision. It is already becoming a reality in some of the most developed European markets.

Fintech is developing rapidly around the world. Is Macedonia keeping pace with this trend, and what regulatory or market changes are needed to accelerate the development of the domestic fintech ecosystem?

Macedonia has made significant progress, but I believe the greatest potential is still ahead of us.

The next stage of development will depend not only on private investment, but also on how quickly regulation can evolve in line with European trends.

Open banking, digital national identity, electronic money, instant payments and alignment with the new European regulatory framework will be key prerequisites for greater competition and more innovation.

At the same time, we need a deeper domestic capital market.

If we want fintech companies to grow, they need access to a broader range of funding sources. The development of the corporate bond market is particularly important because it gives domestic institutional investors the opportunity to finance the growth of domestic companies.

I believe the future lies in stronger cooperation between banks, fintech companies, regulators and investors.

Fintech should not be viewed simply as competition to traditional banking. It should be seen as a driver of modernization across the entire financial system.

What are your expectations for the sector over the next few years? Do you expect the sector to increase their share of the financial market through new digital products, artificial intelligence and simpler access to financing?

I am convinced that over the next five years we will see one of the most significant transformations of the financial sector in its recent history.

Artificial intelligence is already becoming an integral part of almost every area — from credit scoring, fraud detection and automated collections to personalized financial advice and fully digital customer communication.

At the same time, the non-banking institutions will increasingly evolve into platforms that connect different financial services.

Lending will become just one of many services that customers access within the same digital ecosystem.

I also expect further diversification of funding.

Alongside traditional bank credit lines, we will see more corporate bond issuances, a greater role for institutional investors and further development of the domestic capital market.

This can improve financial stability and create greater capacity for investment in technology and innovation.

Ultimately, the companies that will succeed are those that can build trust, have the best technology and deliver the simplest and safest digital financial experience.

That is the direction in which the European financial sector is moving, and I am confident that Macedonia will be part of this transformation.

Regulation will also play an important role in this transformation. How do you see the regulatory environment evolving?

The next few years will not be defined by technological innovation alone. They will also be shaped by significantly higher regulatory expectations.

We are seeing a clear trend towards greater alignment with the European regulatory framework. This means higher standards in corporate governance, risk management, internal controls, transparency, consumer protection, anti-money laundering, cybersecurity and the operational resilience of digital systems.

In Macedonia, changes to the Law on Financial Companies have already been announced, introducing stronger corporate governance mechanisms, mandatory internal control functions and enhanced supervision.

At the same time, regulators are placing increasing emphasis on transparent advertising and fair treatment of consumers.

From an industry perspective, this should not be viewed simply as an additional burden.

On the contrary, higher standards can strengthen investor confidence, improve access to domestic and international capital markets and ultimately contribute to more efficient financing.

Companies that invest today in strong corporate governance, digital security, artificial intelligence, data management and diversified funding sources will be the ones best positioned to lead the next phase of development in the financial sector.

My message is that the future will belong to institutions that can successfully bring together three essential pillars: innovation, trust and regulatory compliance.

Only companies that can balance these three elements will be able to grow sustainably, attract capital and create long-term value for their customers, investors and the wider economy.