Financial innovation is an area that is very important in Poland. This is mostly the responsibility of fintechs, entities that not only work with the banking sector but also provide services that complement its digital offerings. What do Polish fintechs do? How does the future of the industry look? Answers to these and other questions are found in this article.
The fintech industry, or the rise of digital financial services
At first glance, it might seem that banks are behind the digital transformation of financial services. However, the reality is that the fintech industry, which includes companies that develop digital solutions related to money circulation, plays a big role in this process. A fintech is an entity that operates online and does not have physical branches providing services to customers. Its activities are also not regulated by banking laws, and fintechs themselves usually start as start-ups.
What do Polish fintechs do?
According to the Map of Polish Fintech report, there are currently over 300 companies in the industry, which base their activities on providing and developing various types of digital financial services and solutions related to them. The Polish fintech industry is really very diverse, as it includes companies whose services are very popular, as well as entities that provide specialized services provided mainly to other participants of the financial markets.
Internet payments, online exchange offices and non-bank loans – the most popular services offered by Polish fintechs
It is certainly worth mentioning that many people use the services of Polish fintechs without even being aware of it. What does this result from? Primarily from the prevalence of some of these types of solutions. The most popular are certainly the online payments offered by PayU or BlueMedia. At this point, they are giant media outlets that make their services available overseas as well. Another example is the rapidly gaining popularity of BLIK, which enables secure payments in a mobile app. Lesser-known fintechs also provide popular services, an example being SkyCash. With such an application you can not only pay for highways or parking meters, but also buy tickets for public transport, which makes the solution used by more and more people.
What else is among the popular fintech solutions aimed at individuals? First of all, non-bank online loans led by Bancovo, or online exchange offices such as Walutomat, Cinkciarz, or Amronet. Multi-currency cards are also popular, as exemplified by the customer-appreciated Revolut. Another type of fintech is financial comparison sites such as Comperia, or Rankomat. They have gained great popularity in Poland because using them allows you to find the most attractive offer and thus obtain real savings. They function as intermediaries between banks or insurers and individual customers who want to make informed decisions about their finances.
Fintech solutions for companies
The services mentioned in the previous paragraph offered by Polish fintechs are so common that they can be used by both individuals and entrepreneurs. However, it is worth being aware that many fintech solutions are dedicated exclusively to the latter, as exemplified by online factoring. It is provided by Finiata or SMEO, among others. A crowdfunding platform called Beesfund was also created with entrepreneurs in mind, which allows you to sell your company’s stock online. Its success is truly significant, as it is now the largest such platform in Poland and one of the largest in Central and Eastern Europe. It also proves that in the fintech industry, a good idea can be the start of a great business.
Fintech on the financial market – X Open Hub
Polish fintech companies are also entities specialized in providing world-class transaction technology to banks, brokers and start-ups. One example is certainly the X Open Hub, an entity that provides multi-asset liquidity and access to state-of-the-art trading technology while maintaining a fully open environment. The company has over twenty years of experience in implementing these types of solutions, which has allowed it to become well established. The proof is certainly in the cooperation with 100 companies in 30 countries around the world. The international success of X Open Hub has made its headquarters in London, but it is in Warsaw where the technology hub operates. It should also be noted that X Open Hub is a trading name of XTB Limited, an entity authorized and regulated by the UK Financial Conduct Authority (FRN 522157).
The future of the Polish fintech industry – expansion and development
What is the future of the Polish fintech industry? There can only be one answer: bright. This is primarily because the pandemic has accelerated the digitization of business, and the need for distance has forced electronic payments. As already mentioned, currently there are over 300 entities operating in the Polish fintech industry. Moreover, most of them are entities that have been established in the last 3-5 years. It is also worth noting that many Polish fintechs have grown to the point where they are able to offer their solutions abroad and are heading for further expansion. One example is the X Open Hub mentioned above, which has partners in 30 countries around the world.
Finally, the impact of the fintech industry on the banking sector is worth mentioning. Well, in many cases, fintech solutions compete with banks, but it is also important to consider that this is a mutually driving rivalry that makes the level of service and innovation constantly increase. It is also worth being aware that it is the banking sector that mostly funds fintechs and also invests in them at the technological level. This is because the growth of the fintech industry is also beneficial to the banking sector.
