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Advocating for equitable digital transformation in CEE

Embrace the digital revolution while ensuring fair competition and innovation across the financial sector.

Harnessing Digitalization for Competitiveness

The digital revolution and its new technologies are changing the world fundamentally. Private and business lives are impacted dramatically. In this phase, Europe must make the best use of digitalization to maintain competitiveness and global future readiness in a world where all the interrelated digital solutions are in play. As users, product providers, innovators and financers, banks can facilitate these developments, provided an adequate regulatory framework.

Challenges in Digitalization

While digitalization offers numerous benefits, it also presents significant challenges that must be addressed:

  • Future Digital Currencies

    Will consist of public central bank digital currencies (CBDCs) and private (stable coin) solutions. From a bank’s perspective both the wholesale (in the interbank business) and retail CBDCs are important. 

    Future Digital Currencies

    Future Digital Currencies will consist of public central bank digital currencies (CBDCs) and private (stable coin) solutions. From a bank’s perspective both the wholesale (in the interbank business) and retail CBDCs are important. However, especially as regards retail CBDCs, the design choices need to be extremely carefully balanced to avoid among other things increasing cost of funding in case of diminishing deposits (= less economic growth, profits, jobs, and tax revenues) and in general to keep the financial system stable. In an extreme case, depositors might be willing to escape the commercial banking system for the safety of central bank liabilities.

  • Crypto Assets

    Can bring many opportunities for financial market participants. However, similarly to CBDCs, if not treated the proper way, they could have unintended consequences. Major concerns include consumer protection, money laundering, carbon footprint and an unlevel playing-field for banks vis-à-vis Fintechs who take on also less regulated (and therefore potentially riskier) activities.

  • EU eID

    Currently, the EU eID landscape is scattered. Some advanced national solutions might be incompatible with the future EU framework, creating inconvenience, complexity, unlevel playing field and potential security lacks. While welcoming the framework for a Digital Identity proposed by the Commission, some important aspects remain unclear (e.g. liability of individual parties).

  • Artificial Intelligence

    With regards to Artificial Intelligence, we should remain vigilant to ensure that European companies are not more constrained than international competitors. Over-regulation in this context could put whole industries at stake and pose risks in a field that needs the fostering of innovation instead of red tape.

  • Level playing field

    The new digital finance market will not be viable unless fragmentation is tackled, level playing field is ensured and regulatory framework will be both technology neutral and innovation friendly. With regards to a level playing field it is also of utmost importance to ensure a harmonization of the EU and third country legislation.

What Could Be Done More?

CBDCs design

The design of CBDCs must be accepted by the public. It shall ensure that CBDCs are used only to the precisely desired extent (e.g., by limiting the amount of a CBDC one user may have in a wallet). 

CBDCs design

The design of CBDCs must be accepted by the public. It shall ensure that CBDCs are used only to the precisely desired extent (e.g., by limiting the amount of a CBDC one user may have in a wallet). With regards to retail CBDCs, it is of utmost importance to maintain the 2 tier model between central bank(s) & commercial banks: ECB provides basic infrastructure and handles steering/monitoring as before. Commercial banks handle AML, KYC and innovation. Specifically, with regards to the Digital EUR it is important to ensure a global availability of the digital EUR and interoperability with other digital currencies. We support more initiatives in the wholesale CBDC area. 

Crypto Assets

A clear understanding and classification of different Crypto Assets (CA) categories is required to ensure proper regulation and supervision to reflect characteristics and risks. 

Digital Identity

  1. Strong cooperation between public authorities and the private sector
  2. The framework should ensure interoperability by building on trusted national eID systems
  3. Critical issues must be addressed to ensure public trust and adoption

Digital Identity

  1. Strong cooperation between public authorities and the private sector is essential for the success of the European Digital Identity Framework (eIDAS 2.0). Banks, with their experience in secure onboarding and fraud detection, should actively contribute to the technical design, rollout and governance of the European Digital Identity Wallet (EUDI-Wallet).
  2. The framework should ensure interoperability by building on trusted national eID systems already in place, while extending usability to private sector services. Existing solutions should be integrated rather than replaced.
  3. Critical issues must be addressed to ensure public trust and adoption:
    i) liability and recourse in case of fraud or identity theft using stolen credentials from the wallet,
    ii) inclusive design to guarantee access for all population groups, regardless of digital literacy or devices, and
    iii) clarity on governance and control, especially concerning data flows, privacy safeguards and the prevention of misuse. Additional efforts are needed to ensure that commercial incentives do not compromise citizens' data sovereignty or digital safety.

Artificial Intelligence

Any new regulation on AI mustn’t add new and innovation-stopping requirements or create conflicts and overlap with existing rules. Full clarity is also needed for instance with regards to the interaction with the existing regulatory framework.

Level Playing Field

To ensure a Level Playing Field for all market participants it is important to preserve the principle ‘same services, same risks, same rules’, regardless of the technology or business model through which they are provided.

Why Transparency Matters

The Government and Stakeholder Affairs team of the RBI Group offers in-depth expertise in the fields of banking, financial services, and economic policy. We provide sound and empirical data and facts on financial service activities in Central and Eastern Europe (CEE).

Our priority is a lively, transparent, and open information exchange with our stakeholders, whom we permanently involve in our knowledge transfer. In Vienna, in Brussels, in Europe.

  • Corporate advocacy

    In any given democracy, public debate is crucial in forming political opinions which then influence how governments define their positions in relevant policy areas. These positions finally translate into regulation that effects all of us.

    Corporate advocacy

    In any given democracy, public debate is crucial in forming political opinions which then influence how governments define their positions in relevant policy areas. These positions finally translate into regulation that effects all of us.

    Evidently, there are a significant number of stakeholders that participate in public debate, most notably political parties, trade unions, NGOs, grass root initiatives or scientists all together representing a wide range of ideas, beliefs, and causes.

    Whereas in the past, corporate businesses have been reluctant to contribute to and engage in public debate, a significant number of businesses have come to understand and appreciate their role in society more and more as a corporate citizen. As a result, they feel encouraged to be increasingly vocal about questions that are relevant to them as much as to society at large.

    We are happy to bring our ideas and beliefs to the table and discuss the impact of our business on society. Here we can show, how our banking contributes to wealth, prosperity, and sustainability in the countries we work in. Just as much, we are strongly interested in challenging ideas we feel may have adverse or negative effects on social, economic, and environmental issues that are of concern to us.

    Traditional lobbying is only one aspect of how we go about to by explaining our positions to interest groups, regulatory authorities, politicians or other stakeholders. Our overall approach is more of what we call corporate advocacy. And this is not only about what we expect others to do for us. Being open for dialogue is just as much about learning from people with others perceptions and beliefs.

  • Transparency register numbers and Code of Conduct

    Transparency register numbers of Raiffeisen Bank International:

    • Europe: EU Transparency register: 33858106461-10;
    • Austria: Lobbying- und Interessenvertretungsregister: LIVR-00104

    Transparency register numbers and Code of Conduct

    Transparency register numbers of Raiffeisen Bank International:

    • Europe: EU Transparency register: 33858106461-10;
    • Austria: Lobbying- und Interessenvertretungsregister: LIVR-00104
    • Germany: Lobbyregister des Deutschen Bundestag: R005510

    Code of Conduct

    The RBI Group Code of Conduct is the foundation of our corporate culture. This Code of Conduct is internally binding for the RBI Group, but does not create any rights or obligations of third parties vis-à-vis members of the RBI Group. Persons who provide services to or otherwise work for the RBI Group and all other business partners of the RBI Group are expected to agree to the RBI Group Supplier Code of Conduct as a mandatory part of the contract and to comply with all rules and standards contained therein.

    Open RBI Code of Conduct page

  • UN Global Compact

    We are one of the signatory companies of the UN Global Compact (UNGC). The UNGC is the world’s largest initiative that helps companies align their practices with a sustainable and inclusive future.

    UN Global Compact

    We are one of the signatory companies of the UN Global Compact (UNGC). The UNGC is the world’s largest initiative that helps companies align their practices with a sustainable and inclusive future.

    The UNGC initiative is based on CEOs’ commitments to adhere to universal sustainability principles and offers a principles-based framework and network.

    Over the course of more than two decades, the UN Global Compact has mobilized companies around the world to align their activities and strategies with ten principles and enabled change by reporting on their progress in adhering to these principles. The UN Global Compact has evolved from a group of 44 companies to what is now the world’s largest corporate sustainability initiative and a global movement of more than 18,000 companies and 3,000 non-corporate stakeholders in over 160 countries.

    The current Strategy 2024–2025 continues this path and reinforces the expectations of companies when integrating the ten principles into their operations.

    The United Nations Global Compact is uniquely positioned to support companies as they align their practices for a sustainable and inclusive future. With the broad-based support of all 193 participant countries of the United Nations General Assembly, the UN Global Compact remains the single, global normative authority and reference point for action and leadership within a growing global corporate sustainability movement.

    Our strategy intends to leverage that position and elevate expectations of how businesses will embed all Ten Principles of the UN Global Compact into their operations. These Ten Principles — covering human rights, labour rights, the environment and anti-corruption — are intrinsic for the sustainability of business, people and the planet. They offer companies of all sizes a blueprint for contributing towards achievement of the 2030 Agenda for Sustainable Development and the Paris Agreement.

    We are confident that, through this strategy extension to 2025, the UN Global Compact will help the business community make the progress it needs to make so that it – and the rest of the world – will achieve the goals needed to ensure a better life for all.

    Together, we are the UN Global Compact, uniting business for a better world.

     

    Our Contribution

    As a signatory company, RBI is not only committed to consistently adhering to the ten UNGC principles of responsible business – with the core areas of human rights, labor standards, environmental protection and the fight against corruption – but also expects the associated attitude of global responsibility from all employees and managers as well as from partners and suppliers.

    Read more about UN Global Compact

  • Economic footprint of RBI in CEE countries

    RBI – as part of the Austrian Raiffeisen Banking Group – is an important participant on the European banking market, particularly in Central and Eastern Europe (CEE). 

    Economic footprint of Raiffeisen Bank International in CEE countries

    RBI – as part of the Austrian Raiffeisen Banking Group – is an important participant on the European banking market, particularly in Central and Eastern Europe (CEE). In recent years, the banking sector has undergone numerous changes. In environmental conditions, such as regulatory measures to safeguard financial market stability in Austria but also in CEE, a longer-term low interest rate environment and adjustments due to the progressive digitalization (e. g. further development of internet banking services) and changes in the banking sector. For this reason, the objective is to determine the employment and economic contributions of RBI for all CEE countries (including Austria) in which it operates.

    Read more on our Annual Reports

Want to learn more about other initiatives?

  • EU Enlargement & Neighborhood Policy

    The Western Balkans countries including Albania, Bosnia and Herzegovina, Kosovo, Northern Macedonia, Montenegro, and Serbia are of significant cultural, social, economic, and geostrategic importance for the Union. They are home to nearly 18 million people and eager to join the EU. 

  • Savings and Investment Union (SIU)

    The Savings and Investment Union (SIU) initiative represents a key milestone in strengthening Europe’s financial architecture. Its core objective is to ensure that household and institutional savings are effectively channelled into productive investments, thereby enhancing innovation, growth, and the green and digital transitions.