The Alternative Financial Services Association of North Macedonia
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Online loans are easy and affordable, but they need to be used responsibly and wisely

Citizens often satisfy their financial needs by borrowing money, i.e. by taking loans from the traditional financial services or financial companies. However, it is very important for every individual to know how to manage their assets wisely because situations are equally risky in the absence of money, but also in a situation where there is no financial viability to repay the borrowed funds.

Financial companies, as the most important part of the non-banking financial sector, have formed an Association of Financial Institutions with the aim of long-term cooperation and positive evaluation by consumers and market regulators. The association is consisted of members of the financial companies such as Tigo Finance, Mogo, Digital Finance, Credissimo, M Cash, SN Finance and Iute Credit, and are dedicated to providing assistance to its clients in advancing their skills and capacities when making sensible decisions for taking loans from financial companies.

Short-term loans are otherwise commonly used to cover emergency costs, health, education, home repairs, etc. While the service is easy and convenient, it should be used responsibly and reasonably. Before taking out a short-term loan, the real need for these funds and the ability to pay on time should be assessed. At the same time, it is recommended that anyone who decides to take out a short-term loan to make sure that he is paying interest, that he has carefully studied the terms of the contract, and that he is taking care of his budget to pay off the loan on time.

Short-term loans should not be used as a solution to long-term financial problems. They should also not be used to pay off other loans, such as mortgages, leasing, etc.

The Association recommends that if the client has difficulties and is unable to meet its obligations, it will in no case borrow from other creditors just to pay off the existing debt, nor should it delay the problem, but should contact the company from where they borrowed money to find a common solution.

To create responsible industry practice, members of the Association also signed a Code of Conduct providing additional protection to the interests of consumers who have received or expect to receive service from members of the Association. This Code incorporates fair commercial practice guidelines and professional diligence criteria, in accordance with fair market practices, goodwill, and responsible lending principles generally accepted in the non-banking credit industry.

The Code of Conduct at the same time provides assurance to creditors of one of the members of the Association that the business practices set forth in this document will be respected. This way of working, according to the established rules, is expected to provide greater trust to the users, but also to the competent institutions and of course to the general public in the financial companies industry.

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We are hiring! AFD opens a new position General Secretary

The Association of Financial Institutions of Republic North Macedonia unites financial technology (FinTech) companies and other organizations that operate outside the traditional financial institutions sector, providing financial services to the residents of North Macedonia. The Association’s mission is to create a reliable and responsible industry practice, aimed at long-term cooperation with and positive assessment by clients and market monitoring institutions, while at the same time explaining to the general public the various opportunities the Non-Bank Financial Industry services can provide for the development of individuals and the society as a whole.

Following the dynamic growth of the industry, we are expanding our team, opening a new position:

 

General Secretary

MAIN RESPONSIBILITIES:

  • Securing long-term development of the non-banking financial industry in North Macedonia
  • To develop relationships with the non-banking financial industry market players
  • To work with key political and institutional stakeholders in North Macedonia to draft legislation regulating the industry
  • To establish the Association as a strong representative of the industry in North Macedonia
  • To manage daily work within the Association
  • To search for different partnership opportunities and develop fruitful relationships with key political and institutional stakeholders
  • To represent and promote the Association in media and for general public
  • To communicate with association members and supervise them, ensuring compliance with the Articles of Association, Standard of good practice and other approved association’s documents

 MAIN REQUIREMENTS:

  • At least 3 years of professional experience in a managerial role
  • Deep understanding of North Macedonia’s financial sector
  • Experience in Public relations is considered to be advantage
  • Solid understanding of the local political environment
  • Excellent negotiation and communication skills
  • Business-oriented with strong leadership skills
  • Fluency in English

   WHAT WE OFFER:

  • An exciting job within a quickly growing industry
  • Motivational remuneration package with performance bonuses
  • Highly qualified, experienced and friendly team of colleagues
  • Modern working environment and great technical support

REMUNERATION/ SALARY: Competitive

 

 

NOTE: This job description is not intended to be all-inclusive. The employee may perform other related duties as negotiated to meet the ongoing needs of the organization.

If you find yourself fitting this description and willing to step in into dynamic and challenging environment, we are eagerly looking forward receiving you CV in English on info@afd.mk until September 5th.

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The Code of Conduct of financial companies guarantees fair practice for their clients

The rapid development of the non-bank financial services sector in the country, especially the growth of the services of the financial companies that offer credit opportunities in the market, often at lower amounts to cover unexpected financial needs, has imposed the need to provide unified quality standards of operation of the industry.

In the country, the number of financial companies offering online loans has been steadily increasing in the last few years, and there is a permanent increase in the number of contracts signed and funds allocated to citizens. The fintech industry and online loans around the world are already widespread as they offer services in a way and procedure very different from traditional financial institutions. With the speed of approval, the ease of procedure and affordability, they are becoming a serious player in the financial services markets, and this trend is becoming more evident in our country as well, which is catching up with global trends through financial companies.

Seven of the most technologically advanced and largest financial companies in the country formed an Association of Financial Institutions in May this year, in order to raise the quality of their business as an important prerequisite for further growth of the entire industry. This Association includes the financial companies Tigo Finance, Mogo, Digital Finance, Credissimo, M Cash, SN Finance and Iute Credit, and the purpose of their merge is to bring the companies together to create responsible practice, with the aim of long-term cooperation and positive evaluation by consumers and institutions for market regulation.

The members of the Association have also signed a Code of Conduct that provides a higher level of protection and clear rules of cooperation with clients who have received a loan or plan to obtain a certain loan from a member of the Association. The Code also deals with issues such as customer credit rating, ethical marketing, quick and practical appeal review and debt collection procedures. The application of the points of the Code is visible through the mark Responsible Lender that members have adopted, which assures clients that they will receive appropriate treatment.

„Each member of the Association is obliged to provide each client with the necessary information on the loan, the method of repayment, the amount of the costs and installments and any other information related to the nature of the loan and of course, to advise on what needs our services are designed to make better decisions. Also, in order to ensure the adequacy of the approved loan with the financial conditions, it is our responsibility to make a realistic assessment of the client’s solvency in accordance with the legislation and the use of personal credit risk models, to prevent the borrower from taking unnecessary actions.”, said Filip Dimitrovski, President of the Association of Financial Institutions of the Republic of North Macedonia.

The Code of Conduct at the same time provides assurance to the credit users of one of the members of the Association that the business practices set out in this document will be respected, because otherwise, if they have complaints about the operation of a financial company, they can now submit them to the Association.

This way of working, according to the established rules, is expected to provide greater trust to the users, but also to the competent institutions and of course to the general public in the industry which is relatively new in our country. The Association also encourages other non-bank financial institutions to join and work together on a well-balanced industry development.

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Availability, efficiency and speed as major advantages of the non-banking financial sector

The non-banking financial sector, as one of the major sectors of the Fintech industry, has seen rapid growth and development in recent decades, boosting the market and promoting the financial services industry worldwide.

The essence of non-bank financial institutions (NBFIs), also known as financial companies, is to meet the short-term financial needs of citizens for fast, efficient and simple financial services, by applying advanced and innovative technology to all the channels that consumers prefer, with emphasis on digital channels.

But what essentially differentiates traditional financial institutions and non-bank financial institutions? Are they competitors?

It can be said that traditional financial institutions and non-bank financial institutions are not essentially competitors, as there are several major differences between them, both in terms of target groups, in terms of technology, clients preferences, etc., but in general,  it can be concluded that these differences actually make both sectors complementary entities in the financial market that contribute towards increased financial activity and the progress of the entire industry.

One of the major differences is technology. Financial companies use state-of-the-art technology solutions in their services that provides them to complete all procedures within seconds, from a computer or mobile phone, to all application procedures, check the applicant solvency and obtain a response within minutes, if the application is approved. The advantage of non-bank service providers is that their technology solutions are up-to-date, making them highly efficient, while with the increased availability of the internet and changing customers’ habits for access to digital channel services, financial companies can provide customers with the fully new, digitized process, rather than hours spent in branches or filling out piles of documents.

Also, their company culture and attitudes are similar to those of start-up companies, whose focus is on delivering efficient service and great customer experience, opposite to the global corporations, which often revolve around difficult bureaucratic procedures.

Clients of financial services are usually those clients who need small, micro loans to help meet unexpected financial needs, to cover unforeseen household expenses, and so on. These products are mainly intended for short-term use, usually up to 12 months, thus not forcing the consumer to enter into long-term secured financial relationships.

Full personalization, immediacy, simplicity and affordability. Non-bank financial institutions offer individual access, flexibility, discretion, simplicity in application, which includes avoiding desk procedures and unnecessary documentation, as well as excluding notarial costs. They are applied online, via any internet device, in a short procedure the applicant’s solvency is checked, and then the loan is re-approved online, which is not the case with traditional financial institutions where there are extensive procedures, gathering required documents, securing guarantors, visiting the branches on several occasions and so on.

Financial companies also open branches and hire local staff in rural areas and smaller towns where traditional financial institutions have shown no interest in working and serving consumers.

In terms of products, traditional financial institutions issue larger amounts over a longer period of time and until recently, it was almost impossible to obtain a loan from a traditional financial institution in the amount of 6,000, 10,000, 15,000,000 denars, amounts which are often urgently needed for some intervention for some unforeseen costs. On the other hand, non-bank financial institutions help clients address acute financial needs, where time plays a decisive role. The main idea of ​​non-bank financial institutions is based on short-term liabilities, which determine the advantages of non-bank loans in situations where money is needed quickly and the repayment period is not long. As the loan amount is much lower than in traditional financial institutions, the bureaucratic requirements are therefore significantly lower.

Also, it is very important to mention that another main thing that differentiates the non-banking financial institutions from the traditional financial institutions is the source of financing. Unlike the traditional financial institutions, the non-banking financial institutions do not collect deposits, ie savings deposits, which are the primary source of cheap financing and then lending, but they fund their activities either from own funds or, to a large extent, from loans.

That is why the activities performed by financial companies are a real complement to the credit activity of traditional financial institutions. Their work can also be called positive competition that contributes to changing the conservative approach to lending and citizens.

In Northn Macedonia, representatives of the non-banking financial sector are financial companies that represent an industry that has been growing at an accelerating pace in recent years, confirming that the population needed precisely these types of services.

In order to create responsible practice, long-term collaboration and positive evaluation by consumers and market regulators, as well as presenting to the general public the various opportunities that financial companies using Fintech can provide, in May this year, Association of Financial Companies was comprised, which currently comprise 7 financial companies operating in the territory of the Republic of North Macedonia, as follows: Tigo Finance, Digital Finance, Mogo, Credisimo, M Cash, SN Finance and Iute Credit.

It will promote safe, socially responsible and sustainable lending practices and at the same time give financial companies the opportunity to work together to introduce service quality standards, as well as to design a mid-term industry development strategy with supervisors and legislators. At the same time, the Association will also work to promote opportunities offered by non-bank financial technology solutions that will benefit individuals and society. The mutual cooperation of the financial companies will provide greater trust to both the users and the competent institutions, thus achieving greater transparency of the financial industry.

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