Banks in Austria are suffering from large number of NPLs since last 5 years. With current NPL ratio of 5% banks have setup ‘Run-Off Company’ a mechanism for recovery. In an interaction with FinBizness, Oliver Hoffmann, Managing Director, Head – Asia at Erste Group Bank, explained that Eastern Europe is the major contributor to the bad loans. Austria has the most crowded banking sector with 670 banks operating for the population of less than 9mn. Oliver believes that Austrian banks need to evolve with changing trends in global banking sector and emphasis must be on digital. He adds that the current space occupied by FinTech is low.