Governor Radović Meets Minister Gutić: Strengthening Financial Inclusion for Vulnerable Groups

19/06/2025

With the aim of improving financial inclusion and access to basic banking services for vulnerable population groups, the CBCG Governor, Irena Radović, met with the Minister of Social Welfare, Family Care, and Demography, Damir Gutić.

The meeting focused on information exchange and planning joint activities related to the implementation of the Law on Comparability of Fees Related to Consumer Payment Accounts, Payment Accounts Switching and Payment Account with Basic Features. Through this, the CBCG and the Ministry aim to improve the conditions for using payment services for recipients of minimum wage and beneficiaries of social welfare and child protection rights.

Despite the fact that 85% of Montenegrin citizens have a basic bank account, the statistic that only 1,452 out of 150,000 beneficiaries of social welfare and child protection rights have such an account highlights a significant gap between legislation and its practical application.

To address this, a joint working group between the CBCG and the Ministry of Social Welfare will be established to coordinate efforts in raising public awareness, empowering citizens, and ensuring that legally prescribed benefits become truly accessible. Special focus will be placed on cooperation with the banking sector, media, and civil society organizations to ensure this information reaches every household—because, as concluded, “awareness of a right is the first step toward exercising it.”

This initiative comes at a key moment, as Montenegro prepares for full integration into the Single Euro Payments Area (SEPA), further emphasising the need for accessible and inclusive payment services. SEPA allows for more efficient, transparent, and cost-effective payment transactions, but its full benefits cannot be realised if a large portion of the population remains outside the formal financial system. The joint goal of the CBCG and the Government is to strengthen the capacity of vulnerable groups to participate equally in the country’s digital and financial transformation.

The CBCG’s objective is for Montenegro to reach the EU average in terms of access to basic bank accounts, where 94% of the population utilizes this right. Increasing this percentage is a key step toward greater financial stability, social justice, and citizen empowerment through equal access to banking services—whether at counters, ATMs, or via digital platforms.

“Financial inclusion must not remain a declarative goal, but must become a reality for every citizen, especially for those who benefit most from such measures. A basic account, as a social policy instrument, enables access to essential financial services without discrimination and encourages active participation of vulnerable groups in the country’s economic and social life,” said Governor Radović.

Minister Gutić stated that around 200,000 individuals are currently in the social and child protection system, and that this population could directly benefit from the legally provided advantages, including receiving financial support through bank accounts.

“Citizens must feel that institutions are working for their benefit. When we simplify access to services, we build trust—and with trust comes community strength,” the Minister emphasised.

He also pointed out that an increasing number of beneficiaries, especially persons with disabilities, are showing interest in receiving their social benefits directly into bank accounts, enabling faster and easier access to funds without additional administrative procedures. The Minister also referred to existing legal provisions. Some rights within the social and child protection domain are linked to the beneficiary’s place of residence, and these must be incorporated into the creation of new solutions.

“By opening this topic, we are taking the first step toward solving challenges in the interest of users and creating a more functional system,” concluded Minister Gutić.

It is worth recalling that under the Law on Comparability of Fees Related to Consumer Payment Accounts, Payment Accounts Switching and Payment Account with Basic Features, vulnerable consumer groups are entitled to open a payment account free of charge, deposit and withdraw cash at counters or ATMs—including outside regular working hours of credit institutions—and make the first ten national payment transactions each month.

These measures are fully aligned with the European Payment Accounts Directive (2014/92/EU) and represent an important step toward achieving SEPA integration goals—not only technically but also socio-economically. Their full implementation will ensure that digitisation of payment services does not deepen existing social inequalities but becomes a tool for overcoming them.

The CBCG will continue its efforts to improve access to financial services as a foundation for economic resilience and inclusive societal development.