Although Slovenia ranks among the top ten countries on the OECD Open Data Index, a Eurobarometer survey reveals growing public concerns about digital rights and data protection. Only 46% of Slovenians trust the EU to safeguard their digital rights, and 62% are concerned about online safety for young people.

Last week’s conference by the Institute for Strategic Solutions (ISR), titled In Data We Trust: Accept or Decline?, explored these challenges. Leading experts from the government, banking, insurance, postal, and healthcare sectors, under the guidance of certified ethical hacker and cybersecurity expert Milan Gabor, discussed the challenges of digital literacy, user experience, and cybersecurity in a roundtable session. Speakers exchanged best practices during the closing panel on how small and medium-sized enterprises can contribute to innovation in the Slovenian market through responsible data use.

“About a month ago, news broke of a hacking attack on the University of Maribor, and we regularly hear about attacks on critical infrastructure. These attacks are often a consequence of geopolitical events, resulting in an increasing sequence of cyberattacks,” were the opneing remarks by Tine Kračun, ISR Director. According to the World Economic Forum (WEF), approximately 2,200 cyberattacks occur daily, with monthly damages estimated at $700 billion. Despite these risks, data brings huge advantages — the key question is how to invest in it with trust while maintaining security.

“There are two narratives about data — there’s increasingly more of it, yet at the same time, less of it,” said Dr. Jure Stojan, partner and director of Development and Research at ISR. While the International Data Corporation (IDC) estimates that 180 zettabytes of new data will be generated this year, Stojan highlighted the critical issue of sustainability. “Statistics show that 38% of websites went offline in 2013, 31% in 2018, and this percentage dropped to 8% last year.” He pointed to the gap between social understanding and everyday practice: data often arises as a byproduct of our entertainment, information-seeking, and device usage, while regulations like European sustainability reporting standards, requiring 1,177 data points, demand intentional collection.

On one side, we have data quality, transparency, and usability; on the other, its security. “Maintaining trust with our policyholders is essential. Advanced cybersecurity, transparency, and communication—specifically which data we collect, why, and how we ensure its security—are critical,” emphasized Matija Šenk, CEO of Vzajemna Health Insurance, during a panel on data security. Similar challenges exist at Pošta Slovenije, which, according to Slavko Ovčina, Director of ICT Solutions Division, “began its digital service transformation years ago. Over the past year, we’ve launched numerous projects, which inevitably involve elements of information security. The recipient must be protected, and the sender must be credible.”

The challenge of maintaining trust is particularly significant in the public sector, while businesses may be a step ahead in digital operations due to earlier adoption of legislation, explained Dr. Karmen Kern Pipan from the Ministry of Digital Transformation. She noted that trust improved during the pandemic but that citizens still need to be encouraged to use state digital solutions through soft approaches.

Meanwhile, the financial sector focuses on education, explained Primož Vogrinec, Chief Information Officer for Security at NLB. “We invest heavily in user education because users are often the weakest link. While we can’t prevent attack attempts, we can limit their success.” However, the primary challenge lies in users’ varying levels of prior knowledge and access to different technologies, added Matija Šenk.

These concerns are justified, as police data shows 1,600 reported cyberattacks this year, causing €25.5 million in damages. “Banks and insurance companies, which must ensure data security, have well-established systems for data protection. Small and medium-sized enterprises often do not,” warned cybersecurity expert Milan Gabor. He emphasized that greater data accessibility brings higher risks of attacks, especially with the rapid development of new technologies. “Hackers quickly adapt and assimilate their technologies; for example, they use artificial intelligence for increasingly sophisticated phishing attacks.”

In response to these challenges, the government is strengthening digital literacy infrastructure. “When technology is needed, it’s important to have it at hand,” emphasized Dr. Kern Pipan, explaining that 162 digital info points have been established across Slovenia, providing citizens with direct support in using digital services. According to Slavko Ovčina, a systemic approach to digital literacy is the long-term solution: “Digital literacy should be introduced in schools. It’s about how children share information—something we weren’t exposed to in the past, but today, everything is published.”

While technology advances and threats evolve, the key question remains how users will assess the credibility of digital data and content. Gabor highlighted the dangerous discrepancy between the digital and real world and the often excessive trust in it. “Passwords lead to our digital identities and consequently to large amounts of data.” He added that the awareness process will unfold gradually and that the state must drive it forward.

Many companies are still seeking a balance between digitalisation and data security, but Športna Loterija represents an example of a successful approach to managing user data. “Our company receives very positive feedback, as players consistently express trust in our security policies and data management,” explained Jani Ravas, Director of IT and Technology. The company builds user trust on multiple pillars, from proactive security policies with regular security audits and certifications per international ISO 27001 and ISO 9001 standards to implementing advanced technological solutions such as data encryption and two-factor authentication.

“Why do fraudsters do it? Because they can.” With these stark words, Maja Krumberger, director of the Slovenian Insurance Association, opened the inaugural international conference on fraud prevention at Bled. The two-day event convened leading experts from insurance, justice, law enforcement, and data analytics sectors to confront a growing global crisis.

In an industry generating more than a trillion dollars globally, fraudsters syphon off over $40 billion annually, according to the FBI. Far from being a victimless crime, this has evolved into a shadow tax on honest citizens, costing the average American family between $400 and $700 yearly in inflated premiums. Even in Slovenia, a country of just two million people, the annual toll reaches €200 million.

The problem is particularly acute in the United Kingdom, where Thomas Hill, head of the London Police’s insurance fraud prosecution department, reports an 8% surge in fraud cases over the past year. £1,9 billion in reported losses for 2023/24, with fraudulent insurance claims accounting for £1,1 billion across 84,470 cases.

One recent case exemplifies the industry’s challenges. Gary Whipps, a broker who specialised in amusement park insurance, orchestrated a simple yet effective scheme: altering premium amounts on contracts, pocketing the difference, and leaving 26 clients with compromised coverage. His conviction in June brought a two-year prison sentence, but the story highlights the gap between criminal conviction and financial restitution.

“We all pay premiums due to fraud,” notes Jernej Veberič from Triglav Insurance’s fraud prevention unit. Despite laws threatening up to ten years’ imprisonment, he argues the real challenge lies not in penalty severity but in prosecution effectiveness. The complexity of proving fraud, combined with lengthy legal procedures, has made early detection crucial.

Hope for progress lies in enhanced investigative capabilities. Marcus Lindemann, who trains journalists and investigators in Open Source Intelligence (OSINT), demonstrated how publicly available personal data can strengthen fraud detection. “Sensitive personal information that was previously only found on the dark web can now be accessed through the clear net,” Lindemann explained, referring to freely available internet services. Moving to the next slide, he displayed Mark Zuckerberg’s personal data, including over 15 phone numbers and 16 email addresses.

Coupled with tools that utilise AI, fraud detection is improving fast. The Slovenian Insurance Association recently celebrated a milestone in this direction with its FRODO data analytics system. Developed by MEDIUS d.o.o., winning the best digital project of 2024 at the GoDigital conference at Brdo pri Kranju, this AI-powered solution helps member insurance companies detect suspicious claims.

But technology alone won’t solve this crisis. The real solution requires something more fundamental – understanding that each fraudulent claim isn’t just a victimless crime against a faceless corporation. It’s a hand reaching directly into the pockets of every policyholder, taking money that could have protected someone’s home, health, or future.

NLB Skladi, celebrating its 20th anniversary this year, has emerged as the standard-bearer for financial innovation in Southeastern Europe. Commanding a formidable 40 percent of Slovenia’s mutual fund market, the fund has been systematically acquiring regional rivals whilst championing alternative investments in a market traditionally wary of financial sophistication.

In May, it acquired Generali’s Macedonian operation, promptly rebranding it as NLB Fondovi Skopje. Barely four months later, it had planted its flag in Serbia through the acquisition of Kombank Invest.

“At NLB Group, we believe in the development of investment products in Southeastern Europe,” explains Luka Podlogar, chief executive of NLB Skladi, whose measured words belie the scale of his ambition, as the firm plans to harness its extensive branch network to distribute sophisticated investment products across the region.

While many houses maintain alternative assets at the periphery of their offerings, Podlogar positions them as cornerstone investments, particularly for investors looking to move beyond conventional asset allocation. “At NLB Skladi, we firmly believe that alternative investment funds offer exceptional opportunities for investors seeking higher returns, greater diversification, and protection from the volatility of traditional capital markets,” he explains, outlining a strategy that looks beyond traditional market correlations.

His approach rests on what he sees as a fundamental market challenge: the search for investments that deliver both stability and growth. “Alternative funds provide precisely this—access to asset classes such as real estate, private equity and infrastructure that exhibit lower correlation with traditional capital markets.”

Longterm, the firm anticipates alternatives playing an increasingly crucial role in both portfolio stability and wealth creation. For now, though, its traditional investment business is flourishing; €189.5m in net inflows over nine months, but it is perhaps the retention figures that prove most telling. A 44.4% share of gross inflows would satisfy most managers; the higher net figure of 52.3% points to something more significant—an ability not just to attract capital, but to keep it.

Supporting this success is an optimistic market outlook. They see neither the spectre of deep recession nor any significant deterioration in employment levels on the horizon. More notably, their analysts expect inflation to retreat further from late-2023 peaks. Rok Potočnik, senior portfolio manager, offers a remarkably sanguine view of global prospects, as the spectre of recession that has haunted market sentiment is likely to prove chimeric. “We believe that the year will be positive for both asset classes, but even more so for stocks than for bonds,” he says, whilst tempering enthusiasm about a repeat of last year’s exceptional returns. 

The firm’s conviction extends beyond mere outlook, instead pointing to a confluence of supportive factors: stable employment, inflation edging towards target levels, and modest but sustained economic growth. Robust corporate earnings growth, coupled with anticipated monetary easing by major central banks, they argue, should continue to underpin equity valuations. Potočnik translates this into practice: “We maintain an above-average exposure to equities relative to bonds, whilst favouring both asset classes over cash positions.”

This confident stance is reflected in NLB Skladi’s investment portfolio, which warrants a closer look. They maintain a bullish stance on artificial intelligence infrastructure, though the sector’s true revolution—in software solutions—remains unrealised. Perhaps more striking is their stance on healthcare equities, a sector many investors have dismissed as post-pandemic deadwood. The prospect of lower interest rates could spark a wave of consolidation in an industry ripe for merger activity, whilst artificial intelligence promises to streamline the notoriously costly drug development process. The moderation in wage pressures offers particular promise for American healthcare providers, where staffing costs have traditionally eaten into margins.

Yet it is their view on Chinese markets that best illustrates the firm’s thinking. Beijing’s recent announcement of robust measures to reinvigorate its economy has caught their attention. “Should these initiatives gain traction in the real economy, equity prices could respond accordingly,” notes Potočnik. “Current valuations,” he adds, “make the proposition particularly interesting.”

Twenty years after its founding, NLB Skladi presents an interesting case study in market evolution. Whilst its dominance in Slovenia might suggest natural limits to growth, recent moves indicate rather broader horizons. That it continues to attract significant capital suggests its thesis for southeastern European market development resonates with sophisticated investors. The true test, of course, lies ahead. Its combination of regional expansion and investment innovation will be tested by the same economic headwinds that have challenged more established European houses. For now, however, Slovenia’s largest asset manager appears to be writing a rather different playbook.