Wachnicka (ZBP): We have something to brag about. The Polish banking sector stands out in Europe.
Agnieszka Wachnicka, vice-president of the Association of Polish Banks (ZBP), notes that the Polish banking sector is among the most innovative in Europe. For customers, a bank is no longer just an institution into which their salaries flow. Thanks to modern applications, it has also become a place where everyday matters are handled. However, the increasingly large challenge for banks is reconciling opposing expectations. On the one hand, there are consumers who want access to all e-services, and on the other – there is a large group of people still in need of visits to physical branches. “However, the biggest challenge remains security. Banks must operate at the highest level of readiness in the area of cybersecurity to protect customers’ funds and ensure the continuity of the entire financial sector,” says the vice-president of the Association of Polish Banks in an interview for MondayNews.
MondayNews (MN): For many years, the banking sector in Poland has been dynamically developing. Visible changes, such as banking services increasingly moving to our phones, catch the eye. So, what will Polish e-banking look like in 5-10 years?
Agnieszka Wachnicka, ZBP: The Polish banking sector indeed belongs to some of the most innovative in Europe. Several factors determine this, such as a unique payment system, the openness of Polish consumers to testing innovative solutions, and the banks’ drive to invest in new technologies and systematically expand the range of services provided to customers within the framework of electronic banking. This state of affairs means that all European-level regulations currently being designed find fertile ground, as both banks and consumers see numerous benefits resulting from the implementation of new solutions. Regarding the future of the Polish banking sector, these regulations being drafted at the European level allow us to identify the main trends.
MN: What are these trends?
Agnieszka Wachnicka, ZBP: We observe advanced work on improving current and creating new settlement mechanisms. We predict a significant increase in the volume of instant payments, which are to become the new standard in Europe. Planned regulations in the area of the digital euro also enable us to anticipate that a new pan-European payment infrastructure may soon emerge, which will be an alternative to the existing settlement systems. These are undoubtedly revolutionary changes. Just as important is the use of the new trend of increasing the scale of data use and the application of artificial intelligence. Thanks to these solutions, banks will be able to more effectively analyze and predict the needs and preferences of their customers, which will result in the creation of personalized offers and, therefore, better user experiences for those using digital and mobile banking.
MN: The direction of electronic channels is a great facilitation for consumers, but also various types of threats. What advantages will new solutions have? What should consumers especially be aware of regarding the development of the above-mentioned channels? And will the banking sector be ready enough that these threats will effectively be minimised?
Agnieszka Wachnicka, ZBP: As we know, every technology, in addition to the obvious benefits for users, can bring threats resulting from its use by potential criminals. This is a well-known and old problem, closely linked to the ever-progressing technological transformation. The popularization of artificial intelligence seems particularly critical in this context. Criminals are aware of the possibilities offered by technology. They base their new fraud models on deepfake technology and voice cloning.
MN: How can we deal with this?
Agnieszka Wachnicka, ZBP: The banking sector is aware of these challenges and is undertaking actions aimed at limiting such practices by designing ever safer user interfaces (UI) and implementing best market practices and regulations. Consumers should also be prepared for new methods of manipulation and schemes of potential fraud. Therefore, the banking sector is taking measures aimed at supplementing the knowledge of clients and raising awareness of new threats in remote channels. I am deeply convinced that both banks and consumers themselves will strive to effectively prevent these scams.
MN: It is said that the dynamic development of e-banking means fewer physical branches in the market. Is this true?
Agnieszka Wachnicka, ZBP: With technological progress and the development of a digital environment, we observe significant changes in the behaviour of bank customers, and different preferences and expectations are clearly visible among various segments. Younger generations often turn towards digital service channels. More than 22 million active users use mobile banking. However, older people, although they increasingly come into contact with new technologies, still prefer traditional forms of service at bank branches and cash payments. Therefore, the banking sector must be able to meet the needs of these two interest groups. Consequently, banking processes are omnichannel, so as not to exclude older people or those with special needs.
We will not stop the trend indicating a change in customer preferences in terms of remote service and non-cash payments, though. The natural response to this tendency in the market is the decreasing number of bank branches with cash service. Existing branches, on the other hand, may progressively be transformed into customer advisory and service centers, where high-quality advisory services, private banking, and support in the area of more complex transactions and financial products will be offered.
In Poland, access to cash is convenient and widely ensured, not only through withdrawals at bank counters or ATMs but also in shops, at petrol stations, and in selected locations marked with the Cashback logo.
MN: Is the development of e-banking in Poland similar to what is observed in other EU countries and worldwide?
Agnieszka Wachnicka, ZBP: The keyword for the development of digital banking is “customer-centricity.” Banking apps designed in Poland are among the most advanced in Europe and even worldwide. It is enough to mention that in the Digital Banking Maturity ranking from 2022, as many as 6 out of the 30 digital leaders are banks from Poland. This mainly stems from the fact that Polish banks are systematically striving to increase the portfolio of offered value-added services and improve User Experience. Thus, banks are becoming a key place for an increasing group of customers to deal with everyday matters – from buying a parking or motorway ticket and going to the cinema to purchasing insurance or managing personal finances.
MN: What else can we brag about?
Agnieszka Wachnicka, ZBP: As ZBP, we closely monitor the development of internet and mobile banking and non-cash payments, resulting in the quarterly publication of the Netb@nk report. Based on the collected data, it can be concluded that there are constantly more active users of mobile applications and electronic banking. As a market, we are in the European lead in the use of digital banking solutions. We have the most modern payment system in Europe, within which two independently operating instant payment systems operate, as well as a unique mobile payment system BLIK on a European scale. The number of non-cash transactions in our country is systematically growing, and the concentration of terminals is one of the highest on the continent, thanks to the Cashless Poland program.
MN: What are our weak points?
Agnieszka Wachnicka, ZBP: If we are talking about weaknesses, although I personally would not put it that way, sometimes the decision to implement a new market solution takes us a little more time than in the world, but this is always the result of a thorough analysis of the problem from the perspective of customer safety and potential market effects. An example can be popular solutions based on crypto assets, which are starting to be within our interest as a banking sector. However, we approach these solutions with caution and monitor changes in this area before offering such services to our customers on a wide scale.
MN: Do the actions of our country help or rather weaken the development of e-banking in Poland?
Agnieszka Wachnicka, ZBP: In the dynamically changing banking sector, legal compliance with the digital transformation is crucial. Accelerated technological development poses many challenges on the one hand, for regulators and supervisory bodies related to adapting existing laws to new market realities, but on the other hand, the banking sector should remain competitive and safe for its customers.
It is necessary to ensure a balance between providing an “incentive” to introduce innovations and protecting the interests of customers and the stability of the financial system. Regulators must monitor and react to changing trends and technologies, as evidenced by the latest regulations such as AI ACT, MICA, DORA, PSR, and FIDA. In this context, cooperation between the banking sector, the regulator, supervisory bodies, and the central bank plays a key role in developing adequate and flexible legal frameworks that will stimulate the sector’s growth rather than limit its potential.
ZBP, as a business chamber, helps banks identify trends that can improve the efficiency and competitiveness of the banking sector. In this area, a particularly valuable initiative is the Banking Technology Forum, which is unique in Europe. The existence of a forum bringing together technology providers and banks provides an opportunity to organize effective cooperation within the financial innovation ecosystem.
In addition, we systematically carry out activities aimed at developing technological standards and regulations that help banks in safely implementing new technological solutions. Our Banking Councils and Committees bring together banking experts in various areas. Thanks to this, the materials we develop come from people who actively handle individual areas in the bank. This means that ZBP is a forum for expert knowledge exchange from bank to bank and the “emerging” best solutions.
MN: How does the geopolitical situation affect the banking sector in Poland?
Agnieszka Wachnicka, ZBP: The situation on our eastern border has undoubtedly contributed to raising the banking sector’s level of readiness for cyberattacks. After all, we are part of our country’s critical infrastructure. Just remember what it was like at the start of the conflict in Ukraine when we had to deal with cash shortages in ATMs and bank branches. We were then working at the highest level of readiness in close cooperation with the National Bank of Poland. We took on a huge responsibility by opening accounts for refugees from Ukraine, giving them access to our banking system and payment infrastructure. We created bilingual communication channels, dedicated to the Ukrainian minority. In my opinion, the Polish banking sector perfectly fulfilled its task from the first period of the war.
MN: What is the challenge now?
Agnieszka Wachnicka, ZBP: We must now operate so as to maintain and improve the standards and solutions developed then. The pressure exerted on our country determines us that we must operate at the highest level of readiness in the area of cybersecurity, thus protecting our clients’ funds and ensuring the security and continuity of the entire financial sector. All of this, of course, also influences how we approach the implementation of innovations, as any change in the market is currently very thoroughly analyzed from the perspective of customer safety.
MN: Thank you for the interview.
Source: https://ceo.com.pl/polski-sektor-bankowy-nalezy-do-najbardziej-innowacyjnych-w-europie-17252
