Regional focus
partnerships and projects, and has scrapped many of its physical branches. It was also the first bank in Poland to use public blockchain technology. Meanwhile, Poland’s largest bank, PKO Bank Polski, won first place in Finnoscore’s 2020 rankings, which compares the digital competence of European banks. That year, its IKO app registered more than one billion log-ins for the first time, while clients had more than a million interactions with its AI-based voice assistant. The bank also runs an acceleration programme for fintechs called ‘Let’s Fintech with PKO BP’. Another front-runner is Nest Bank, a neobank that builds digital banking solutions for small businesses and has worked with fintechs to develop m-commerce services. “Our clients were some of the first in Poland to open business checking accounts online, within minutes,” says Piotr Kowynia, Nest Bank’s CEO. “Innovation continued with the first online business loan that we offered last year. We took full advantage of the possibilities offered by open banking, introduced by the EU directive PSD2. Small companies can now take out a loan without leaving their office at home. Nest Bank is also the first bank in the world to introduce Visa Mobile, which means its customers can access the service directly in their banking app.”
Relationship building Yet if Poland is a great testing ground for innovations, digitisation is not really about who has the flashiest tech. Rather, success is more about the simple goal of improving the user experience, making interactions more seamless and rolling out personalised solutions that keep up with customers’ changing needs. “Perfect digital banking is the one where the client always has access to services that facilitate his daily needs,” explains Wiktor. “Statistically, clients do not want to focus on banking and do not have much time to think about managing their finances. The bank should be running in the background.”
Key to this strategy is an omnichannel approach, whereby the client can start their interaction through one channel and easily switch to another. The idea is to support employees as well as boost customer convenience. “We anticipate intensive development of digital channels, but our advisors are an essential part of these channels,” says Wiktor. “We will improve the tools of remote communication and collaboration, which will enable employees to effectively support clients without having to visit the branch. Automation techniques, such as a voice assistant, chatbot or intelligent search tools, are a way to reduce costs and relieve our employees from repetitive tasks.” Wiktor also sees a clear opportunity in the cloud – which has yet to realise its potential in Poland. As he explains, cloud solutions will enable data analysis at an unprecedented level, allowing banks to better adjust their services and personalise their approach to each client. “We do not always need [to] be the first,” Wiktor
Future Banking /
www.nsbanking.com
Piotr Kowynia, CEO of Nest Bank.
adds. “We want to improve the services and functionalities that are used by our clients every day, so as to build deeper, systematic relationships.”
Challenges and opportunities Of course, while the Polish banking sector is thriving, it is not without its challenges. According to a 2021 paper by Stefan Kawalec, president of consulting company Capital Strategy, bank lending to companies is increasingly being replaced by state aid. Kawalec argues that the ensuing reduction in credit allocation efficiency may harm the Polish economy more generally, even contributing to a drop in GDP and a slump in living standards.
Banks are also facing risks related to their Swiss franc mortgage portfolios, which may drive further consolidation in what is still a fragmented sector. Adam Glapinski, head of Poland’s central bank, has warned this may adversely affect competition. On top of that, banks are facing high regulatory burdens and high costs. This is forcing the need for solutions with a clear business value, delivered to a reasonable budget. “One way to achieve this is to create software teams that work for the bank in a stable composition over a long period,” says Sierpinski. “Another approach is to use no-code solutions that solve some software development problems. Since a large part of bank development is done by outsourcing companies, banks must take care of proper onboarding of developers, explain their business and show them the limitations.” Despite the larger economic challenges, however, the possibilities for innovation are extensive. With so many digitally savvy institutions in competition, we can probably expect the pace of development to continue for some time. “The Polish payment market is one of the most diverse and open to innovation in Europe,” emphasises Kowynia. “Banks in Poland are racing to innovate in mobile payments, and the Covid-19 pandemic has only increased the pace of this race.” ●
24.4 €856m
Microfinance Centre million
The number of smartphone users in Poland.
Statista 61% Statista 13
The percentage of people using online banking in Poland.
The value of Poland’s fintech market.
smeFinance
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45
