Shaping the future of payments in Croatia: insights from Zagrebačka banka

What are the top priorities for a Director of Payments? Jana Novina Cukrov shares expert insights on challenges and digital transformation in Croatian customer and business banking. 

Hi Jana, great to meet you! Could you start by telling us a bit about your role and responsibilities at Zagrebačka banka? 

I lead the Payments Solutions product factory at Zagrebačka banka, a member of UniCredit Group, where my team is responsible for the end-to-end development and management of all transactional banking products – from accounts and payment services to card issuing and acquiring. 

In practice, this means working across the entire lifecycle of these products: analysing market trends, defining new solutions, coordinating development and implementation, and ensuring that our products serve clients in a way that is simple, secure, and efficient. 

I have been with Zagrebačka banka for more than 20 years. I started my career working on relationships with other banks and financial institutions, which gave me an early insight into how international payment flows and banking infrastructure operate. Over time, I moved into transaction banking and trade finance, taking on different leadership roles related to product development, business growth, and operational transformation. Through these roles, I have had the opportunity to follow closely how the payments landscape has evolved over the past decade. 

Today, my work is focused on how our payment services continue to evolve in a rapidly changing digital environment. 

In addition to my role within the bank, I also participate in several industry working groups and sector initiatives, where I contribute to the development of the broader Croatian payments ecosystem. 

How does your role connect to the bank’s overall strategy in payments and innovation? 

Payments are one of the key strategic pillars for both Zagrebačka banka and UniCredit Group. This is reflected in the creation of the Group Payments Solutions vertical, which brings together issuing, acquiring, transactional payments, and cash management within a single organisational framework. 

This approach reflects what we see happening across the industry. The traditional boundaries between payment products are gradually disappearing. Today, a single payment journey may involve cards, account-to-account transfers, digital wallets, and embedded services at the same time. 

Having development, innovation, and product expertise aligned within one structure allows us to design solutions in a more integrated way. Ultimately, the goal is quite simple: to make everyday financial interactions for individuals and businesses faster, simpler, and more seamless. 

From your perspective, what do Croatian businesses and consumers value most in payments today: speed, efficiency, innovation, or something else? Are there any specific expectations that differentiate Croatian users from other European markets? 

Today’s users expect three main things at the same time: speed, simplicity, and security. Innovation is not a goal itself – it plays an important role, but mainly as a way to deliver these expectations in a fast-moving digital environment. 

Croatia has a very well-developed card ecosystem, and card payments remain dominant in physical retail. Card usage continues to grow steadily, while digital banking adoption has increased significantly in recent years. More than 80% of our clients are using digital channels. 

For peer-to-peer transfers and everyday payments like bills, most clients rely on mobile and internet banking solutions. At the same time, we are seeing a gradual increase in the use of digital wallets, particularly among younger users. 

On the business side, micro-businesses increasingly operate through mobile banking, while medium-sized and large companies tend to rely on internet banking platforms, host-to-host connectivity, or API integrations to automate high-volume payment operations. 

Overall, Croatian clients are quite digitally mature and adopt new payment services relatively quickly when they provide clear value. 

How is Zagrebačka banka catering to these needs?  

Could you share some examples of payment products or initiatives you’ve developed that align with European and global payment trends?  

Are there any local innovations that could be a model for other markets? 

At Zagrebačka banka, we focus on offering a broad ecosystem of payment and cash management services across all channels while continuously improving user experience and introducing new digital opportunities.

For Corporate clients, in addition to the standard range of services, we increasingly develop solutions tailored to specific industries. These help companies automate payment operations, reduce operational costs, improve efficiency, and improve the quality and responsiveness of services to their own customers. 

One example is smart safes for cash-intensive businesses, such as retailers. With these safes installed directly in the client’s premises, cash deposited from the register is immediately credited to the company’s account, which significantly reduces cash handling and transportation costs while improving liquidity management. 

Another important development is API-based payment integration. Companies with high daily transaction volumes can connect their ERP systems directly via Payment APIs, allowing payments to be triggered automatically while incoming transactions are reconciled in real time. 

In the Retail segment, we continue to expand the capabilities of our m-zaba mobile banking application, which has become the central digital channel for everyday financial activities – from paying utility bills and parking to purchasing motorway tolls directly through the app. 

Recently, we also introduced a feature for students in Zagreb that integrates student meal payments with mobile banking, allowing students to pay for meals in student restaurants directly through their phone. 

What are the main challenges or priorities on a Director of Payment Solutions’ agenda at a bank like yours? 

The priority is clear – client first. Whatever our team develops ultimately needs to make our clients’ lives easier. Our role is to help them solve everyday financial needs in a way that is simple, fast, and secure. 

Of course, behind that simplicity, there is a complex environment that needs to be managed. Payment products require coordination between technology teams, regulatory requirements, payment infrastructure, card schemes, and market competition. 

Balancing all these elements while maintaining stability, security, and innovation is one of the key challenges in payments today. But in the end, everything comes back to that simple principle – keeping the client at the centre of what we do. 

Which chllenges can technology realistically solve today, and what gaps still remain? 

Technology has significantly improved the efficiency and scalability of payments. Digitalisation and automation allow banks to process large volumes of transactions quickly while offering increasingly convenient services to clients. 

At the same time, technology is still a tool rather than a solution in itself. 

One of the challenges today is the growing complexity of the payments ecosystem. With APIs, instant payments, digital wallets, embedded finance, and many other innovations evolving simultaneously, it can sometimes become overwhelming for both banks and clients. 

Our role is therefore not only to adopt new technologies, but to ensure that they simplify processes rather than complicate them. 

Another area that requires constant attention is fraud prevention and cybersecurity, which continue to evolve alongside digital payment technologies. Our efforts are also dedicated to the  education of citizens with the aim of raising their level of financial literacy and making them aware of more and more sophisticated financial frauds that target their reactions and emotions, not just our systems. 

How are technologies like AI or digital assets shaping your payments strategy? 

New technologies such as AI will certainly shape the future of banking and payments, although many practical applications are still evolving. 

At Zagrebačka banka, we started exploring these technologies early on. In 2023, we launched a pilot of an AI-powered virtual assistant called Mia, designed to support our contact centre and help clients obtain information about banking services more quickly. 

At the Group level, UniCredit is also closely following developments in digital assets and new forms of digital money. UniCredit recently joined a consortium with other major European banks related to the development of a euro-denominated stablecoin, and as part of UniCredit, we carefully monitor these developments and assess potential future applications. 

As with any new technology, our focus remains on how these innovations can create tangible value for clients while ensuring security and regulatory compliance. 

If you compare your bank’s approach with other regions, where do you see yourselves ahead, and where is there room for improvement? 

One of the advantages we have as part of UniCredit Group is also a regional perspective. Operating across several Central and Eastern European markets allows us to observe how payment habits evolve in different environments and to share best practices between markets. 

From that perspective, Croatia is already quite digitally advanced in payments. Card payments are the most widely used cashless payment instrument, and contactless usage is very high, while at the same time, the use of digital channels, such as mobile banking, has been growing rapidly in recent years.  

Simultaneously, different markets have developed their own payment dynamics. In some countries where maybe card infrastructure developed more slowly, alternative models with mobile wallets and account-to-account payment methods gained traction very quickly. Poland is often cited with the BLIK system, for example. 

This is why I would not necessarily frame it as some markets being ahead or behind – payment methods are strongly influenced by local infrastructure and user behaviour and habits. 

In Croatia, we already have a strong card ecosystem as well as strong usage of digital channels, but there is room for further development of alternative payment methods and for deeper integration of payments into everyday infrastructure, such as transport systems or public services. 

You attended the fintech conference Money Motion, this year’s edition. What major themes at Money Motion did you follow most closely? 

Money Motion has quickly become one of the most relevant fintech and payments conferences in the region, bringing together banks, fintech companies, technology providers, investors, and regulators, and we are happy to have it in Zagreb. 

This year’s discussions covered several major themes that are currently shaping the industry – from the growing role of AI to digital assets and the future of digital wallets. I tried to follow most of the discussions quite closely, but I was particularly interested in the sessions related to AI and its applications in financial services.  

One particularly interesting addition was the Money Motion Day 0 programme, supported by Zagrebačka banka, which was designed as a free educational event for the wider public focused on financial literacy and especially on raising awareness about digital fraud and online financial risks. 

Given the rapid growth of digital payments, initiatives like this are becoming increasingly important. The future of digital finance is not only about innovation, but also about trust, security, and education.