Montenegro’s possible entry into the European Union could gradually intensify competition in its banking market, particularly in digital and standardised services, financial consultant Stevan Gajević said. Membership would make it easier for European banks and other authorised financial institutions to serve the country, but would not by itself guarantee lower interest rates or bring a large number of new banks into the relatively small market.
European providers could enter by opening branches or operating across borders. Digital technology also means competition can come from institutions with no physical presence in Montenegro. “The possibility of entry does not mean many banks will have a business interest in our relatively small market,” Gajević warned.
The expected shift is in stages and across particular parts of banking, rather than an abrupt market-wide change. For customers and businesses, the practical question is how many offers are genuinely available and affordable, not how many institutions are legally able to operate in the country.
Fees and lending may respond at different speeds
The clearest pressure on banks’ revenues is expected in payments, account maintenance, card services and other standardised products. As customers compare providers more easily, they may choose lower fees or simpler digital applications. “A customer can switch more easily if the same service has a lower fee and a simpler app,” Gajević said.
The services most exposed are those whose prices are straightforward to compare, including account maintenance, money transfers and digital payments. That could increase pressure on fees and commissions, but stronger competition would not automatically lower borrowing costs. Credit decisions depend on a customer’s creditworthiness, business operations and the prospects for collecting debts, so changes to lending could be considerably slower.
The final price of a loan also reflects funding costs, the stability of a borrower’s income, the quality of collateral and the efficiency of debt collection. “Competition can reduce a bank’s margin, but cannot remove the risk of unstable business or lengthy court proceedings,” Gajević explained. That means lower fees on comparable services do not necessarily translate into cheaper credit.
Montenegro began SEPA payments on 7 October 2025, joining the common European payments area. The inclusion enabled substantially cheaper international money transfers with limited fees, showing that some improvements can happen before EU membership. Gajević described the change as evidence that “some improvements need not wait for membership.”
Fintech access and the cost of digital change
EU membership could create more room for fintech companies, especially in digital payments, electronic money and services for trade and tourism. These firms use technology for financial services ranging from mobile payment applications to platforms that help merchants collect payments and manage money. Authorised payment service providers can use Europe’s cross-border operating system, but do not automatically receive all the permissions held by banks.
Gajević cautioned against viewing the EU as the most dynamic environment for financial technology. Complex regulation, fragmented markets and difficulty financing growth can weigh on entrepreneurship, despite the presence of significant innovative companies. The bloc is developing common rules for areas including crypto-assets and tokenisation, making it important to balance user protection against the cost of regulatory compliance.
Protecting users and controlling illicit money flows should remain priorities, while administrative demands should not prevent smaller innovative companies from operating and leave the market only to the largest systems. That balance will shape whether cross-border access can support new providers as well as established financial institutions.
For banks, digital transformation requires modernising information systems, protecting data, changing internal procedures and training employees. Customers increasingly expect to complete services quickly and simply on mobile phones. “The point is not simply to transfer a paper form onto a screen,” Gajević said, noting that the benefit is limited if an applicant must then visit a branch repeatedly with the same documents.
As examples of established digital financial services, he cited China’s Alipay and WeChat Pay, platforms that have become part of everyday trade and payments. Montenegro could learn from their simplicity and connection of different services while protecting personal data and allowing human review of automated decisions. The outcome of European financial integration, Gajević’s assessment concluded, will depend on whether households and businesses receive better, simpler and more affordable services, while Montenegrin banks improve operational efficiency and customer experience.
