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Unlocking fintech potential

How a regional fintech association can transform the Western Balkans

January 6, 2026

4 min read

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January 6, 2026

By

4 min read

Photo: Dreamstime.

Financial technology, or fintech, is revolutionising how financial services are accessed and delivered globally. Innovations such as mobile payments, peer-to-peer lending, digital identity solutions, and embedded finance are enhancing efficiency, transparency, and financial inclusion.

This is particularly relevant for the Western Balkans, where access to formal financial services remains uneven, underscoring the need for more inclusive economic participation. According to the 2024 World Bank Global Findex, only 46 per cent of adults in Albania and 64 per cent in Kosovo have an account with a financial institution, compared to 84 per cent in North Macedonia. The gap is even more pronounced in digital payments: just 35 per cent of adults in Albania and 47 per cent in Kosovo reported using digital payments, versus 75 per cent in North Macedonia. Fintech can help close these gaps by offering innovative products that boost accessibility, promote digital financial inclusion, and drive broader participation in the formal economy.

Emerging technologies such as blockchain, artificial intelligence, and data analytics can further strengthen the sector’s impact by enabling secure, user-centric services. A dynamic fintech ecosystem can stimulate entrepreneurship, spur technological innovation, attract investment, and support job creation—contributing to a more resilient and dynamic regional economy.

Challenges and opportunities

Despite its promise, fintech development in the Western Balkans faces structural barriers. Regulatory uncertainty, fragmented policy approaches, reduced cross-border services, limited access to risk capital, and shortages of specialised talent continue to inhibit the growth of startups and innovative financial service providers.

Outdated or inconsistently applied regulatory frameworks pose challenges to market entry and cross-border operations. Financial entities, including banks, require holistic solutions for seamless digital operations and clear regulatory guidelines to ensure smooth oversight and legal compliance. Even where regulatory frameworks are aligned, inherent risks and challenges in enforcement remain.

Yet these constraints also present an opportunity. Aligning regulatory reforms with market realities, investing in skills development, and fostering stronger public-private dialogue could turn these obstacles into catalysts for progress. The question is how to make this a reality.

The strategic role of a regional fintech association

At IFC, we believe a regional fintech association could provide the institutional framework needed to address these challenges collectively. Such an association would serve as a unified voice for the sector, fostering cross-border collaboration, advocating for regulatory harmonisation, encouraging responsible innovation, and creating a platform for structured engagement between regulators and market participants.

The association could act as a hub for knowledge exchange and capacity building, offering training programs, mentorship, and access to technical resources. It could facilitate access to funding by connecting start-ups with investors and leveraging regional and international financing instruments. In addition, it would enhance the visibility and credibility of the region’s fintech ecosystem on the European and global stage.

That is why IFC’s Western Balkans Digital Financial Services Project, implemented in partnership with the State Secretariat for Economic Affairs SECO, has been instrumental in bringing key private sector stakeholders together to launch a roadmap for a Balkans FinTech Association. The roadmap outlines the association’s objectives, organisational structure, membership types, and best practices from similar regional initiatives. These efforts have gained significant momentum, with strong interest from fintech firms across the region.

Laying the groundwork for launch

The next phase will focus on engaging potential members to ensure the successful launch of the association. This will require thorough groundwork and professional support to establish an inclusive and relevant association. Key steps include defining a clear legal framework, equitably distributing start-up costs among members, securing a knowledgeable secretariat, maintaining inclusive membership for fintech companies across the region, and equipping the association with effective communication tools to build visibility and recognition.

Ultimately, the fintech sector in the Western Balkans holds immense potential to advance financial inclusion, economic diversification, and innovation. Realising this potential will require collective action. Establishing a regional fintech association would not only enable more coordinated growth, but also help ensure that innovation is inclusive, sustainable, and aligned with the region’s broader development goals.

Photo: Dreamstime.

Marcelo Castellanos

Marcelo Castellanos

Marcelo Castellanos is the IFC's Senior Country Manager for Southeastern Europe.

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Case study: Global technology company

1. The Client

A global technology company operating across EMEA, with a regional HQ in Istanbul. The company manages 20+ markets, handling everything from brand campaigns to strategic partnerships.

Role we worked with: The EMEA Head of Marketing (supported by two regional managers).

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Despite strong products and a respected global brand, the regional team was struggling with:

  • Misaligned strategy across markets → campaigns executed with inconsistent narratives.
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Traditional fixes (more meetings, more reporting) only created more noise.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the regional HQ team.

  • Day 1–3: Intake → Reviewed decks, campaign data, and plans.
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    • Sales and marketing had different definitions of “qualified lead.”
    • 40% of spend was going into low-potential markets.
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4. The Breakthrough

The Sprint uncovered that the issue wasn’t budget, but fragmentation.
Three sharp insights unlocked a way forward:

  1. Unified KPIs bridging marketing + sales.
  2. Market prioritisation → shifting budget to 5 high-potential markets.
  3. Simplified narrative → one EMEA core story, locally adaptable.
By just realigning resources and focus, the client could unlock an estimated £250,000 in efficiency gains within the next 12 months — far exceeding the Sprint’s value guarantee. The path to higher returns was already inside the business, hidden by misalignment.
5. From Sprint to Action (4 Pillars Applied)

With clarity secured, Reinvantage didn’t suggest “more projects.”

Instead, we used the Sprint findings to create laser-focused next steps — drawing only from the areas that would deliver the most impact:

  • Readiness → Alignment workshops for sales + marketing teams. New playbooks clarified “qualified lead” definitions and reduced internal disputes.
  • Foresight → A market-opportunity scan identified which 5 countries would deliver the highest ROI, removing the guesswork from allocation.
  • Growth → Guided the reallocation of €2M budget and designed a phased rollout strategy that protected risk while maximising return.
  • Positioning → Built a messaging framework balancing global consistency with local nuance, ensuring campaigns spoke with one clear voice.

Because the Sprint had stripped away noise, these actions weren’t generic consulting ideas — they were directly tied to the breakthroughs.

6. The Results
  • +28% increase in qualified leads across the region.
  • 30% faster campaign rollout due to streamlined approvals.
  • Budget efficiency gains → €2M redirected from low-return to high-potential markets.
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The client came in believing they needed more budget.
The Sprint revealed that what they really needed was clarity and alignment.

With that clarity, the four pillars became not theory, but practical tools to deliver measurable impact.

The Sprint guaranteed at least £20,000 in value — but in this case, it helped unlock more than 10x that within six months.
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Case study: Regional VC fund & accelerator

1. The Client

A regional venture capital fund and accelerator focused on early-stage tech start-ups in the Baltics and Central Europe.

The fund had raised a new round and was under pressure to deliver stronger returns while also building its reputation as the go-to platform for founders.

Role we worked with: Managing Partner, supported by the Head of Portfolio Development.

2. The Challenge

Despite a promising portfolio, results were uneven.

Key issues:

  • Scattered portfolio support → no consistent playbook for start-ups, every partner did things differently.
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The leadership team knew something was off, but disagreed on whether the issue was pipeline quality, market conditions, or internal capacity.

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The Sprint revealed that the challenge wasn’t pipeline quality — it was lack of focus and positioning.

Three core insights provided the turning point:

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These shifts alone gave the fund a path to add an estimated £2M+ in portfolio value over the following 18 months, by concentrating capital and resources where they could move the needle most.
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With clarity from the Sprint, Reinvantage created a tailored support plan:

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  • +26% increase in inbound deal flow from founders citing the fund’s new positioning.
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The Sprint showed it was actually lack of clarity and focus inside the firm.

By applying the four pillars, Reinvantage helped turn scattered effort into concentrated value creation.

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1. The Client

A large international impact organisation focused on entrepreneurship and economic empowerment.
The organisation runs multi-country programmes across Eastern Europe and Central Asia, often in partnership with global donors and corporate sponsors.

Role we worked with: Senior Programme Director, responsible for regional coordination.

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The organisation had launched a flagship regional initiative supporting women entrepreneurs, but the programme was underperforming.

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Traditional programme reviews had produced long reports, but no real alignment or action.

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We ran a 10-day Remote Reinvention Sprint with the regional leadership team and representatives from two country offices.

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  • Day 5–10: Synthesis → Insights distilled into a Clarity Brief + Insight Canvas.
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The Sprint revealed that the issue wasn’t donor pressure or programme design — it was a lack of shared framework and alignment.

Three critical insights reshaped the path forward:

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Armed with Sprint clarity, Reinvantage proposed a laser-focused support plan:

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A national digital development agency tasked with driving the government’s digital transformation agenda, including e-services, citizen portals, and smart city pilots.

Role we worked with: Director of Digital Transformation, supported by IT and service delivery leads from three ministries.

2. The Challenge

The agency had strong political backing but faced hurdles in implementation.

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The agency wanted to accelerate momentum but struggled to get alignment across ministries.

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5. From Sprint to Action (4 Pillars Applied)

Based on the Sprint clarity, Reinvantage proposed a modest, targeted package of support:

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6. The Results
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  • Donor confidence improved → short-term impact report received positive feedback.
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The Sprint revealed it first needed clarity and alignment.

By applying the four pillars to a targeted scope, Reinvantage helped deliver visible results within a single quarter — proving progress to citizens and donors and laying the groundwork for deeper transformation.
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