Banking
Posted: 3 years ago

Aleksandre Dzneladze: Digital Bank’s is Capable of Penetrating International Markets

The digital bank is capable to penetrate international markets and provide international services – the President of the Georgian Banks Association noted when appraising the importance of the establishment of a digital bank in Georgia.

The digital bank essentially differs from a classic commercial bank, Aleksandre Dzneladze told the Business Partner’s Four TV Program.

"The most important thing is that, unlike a classical commercial bank, the digital bank’s minimum capital requirement is lower 10 times and equals to only 5 million GEL. Regulations and counting are not difficult and it is directly attached to the coefficient of liquidity of resources attracted onto current accounts”, Dzneladze noted and explained that the digital bank is not an internet banking. “In the case of internet banking, banking permanently remains on your mobile phone. This is a bank that does not exist in a physical form”, he said.

Aleksandre Dzneladze has referred to the only digital bank in Georgia – SPACE that has already appeared on foreign markets.

As for expectations that the digital bank may boost competition for commercial banks, Dzneladze explained that the competition is not bad and the banking sector records sharp strong competition even now.

We remind you that the National Bank of Georgia (NBG) is discussing the opportunity of licensing a digital bank in Georgia to promote the development of innovative business models, diversify financial products and develop a digital financial ecosystem.