Poll: What’s the best bank for foreigners in the Czech Republic?

The Czech banking sector features a mixture of homegrown and international banking companies. Each has its own individual perks and ways of operating, so picking a bank can be one of the most important personal finance decisions to be made by locals and foreigners alike.

This year saw the 20th edition of the annual Mastercard Bank of the Year in the Czech Republic, with awards for various banking categories as well as an overall gong for “best bank.”

This year, judges awarded the top prize to Česká spořitelna, the oldest bank in the Czech Republic, established in 1825. The company is also the largest bank currently operating on the market by number of customers served. The victory marked the second year in a row at the top of the charts for Česká spořitelna, though the competition was closer this time around.

“The twentieth annual survey showed that home banking and insurance providers have weathered the recent challenging times very well, which is crucial for the Czech economy,” said Petr Stuchlík, the founder and organizer of the competition.

The two other largest traditional forces on the Czech banking market, Komerční banka and ČSOB, failed to make the top three best banks; second spot went to Moneta Money Bank, while third was claimed by young Czech banking start-up Air Bank, now part of the PPF investment group.

Kooperativa won the insurance banking category, while Komerční banka won the awards for Corporate Bank of the Year and Sustainable Bank of the Year. ČSOB won the prize for the best mortgage provider. Along with its overall “best bank” award, Česká spořitelna also won the prize for Private Bank of the Year, along with a special award for helping out local communities during the Covid crisis.

The improvement of digital processes is currently a key consideration for banks, with advances in online banking a major investment area. Indeed, the sector is at the cutting edge of digital innovation in the Czech Republic; Mastercard General Manager for the Czech Republic and Slovakia Michal Čarný said about the changes affecting the sector that “in many ways, banks can be an inspiration for other companies outside the financial sector.”

The success of Czech banks in enhancing digital processes could also serve as a positive example for vital areas of state administration; indeed the incoming Czech government has earmarked a slimming down of bureaucratic procedures through greater digitization as one of its main budget priorities in the coming year.

Innovation in such areas is one of the factors considered by the Bank of Year jury, made of 17 representatives from business, the media and academia. This year’s results appear to be a sign of health for the Czech banking sector, as vibrant start-ups compete for the top spots with some of the country’s most well-established financial institutions.