Our Technology Is Changing the Lives of Customers

As a consequence, banks are moving into terrain well beyond traditional banking services while fintechs - technology companies active in the financial industry - are coming into the world of banking. Are you getting in each other’s way?

No, fintechs do not replace financial institutions but complement them. One example are instalment payment solutions. Fintechs and start-ups are harbingers of change in the market resulting from customer expectations. There are nearly 200 of them in Poland and they have a presence across the industry, from payments through currency exchange and insurance to lending.

We must embrace this change. Banking applications are likely to significantly expand their functionalities in the next year or two. For banks, this could be an opportunity to generate additional revenue but not at the expense of customers. This is because our partners are service providers who want to reach a huge market.

Which partners are predominant? What are the strengths of banks that attract them?

Banks have a unique and enormous customer base, an attractive market for service providers in a variety of sectors, from catering through travel and communication to automotive and real estate services. By establishing relations with banks, partners get access to a large pool of customers and do not have to reach them through broad advertising campaigns or convince customers why they are better than the competition; instead, they can offer their solutions using banking tools. The benefits are mutual, for the bank and its partners, but it is the customer who gains the most by getting access to multiple services in one place. Importantly, the bank does not limit itself to a single service provider in a particular area but gives customers the opportunity to choose among at least several offers. This is a win-win.

Will banks evolve into platforms which meet multiple needs, not just financial ones?

We are definitely moving towards multifunctionality where the classic banking service model is one of many functions. This is already happening but for the time being it is limited to a few solutions, such as paying for parking, buying transport tickets, cinema tickets or motorway tolls. It is only a matter of time before more functions are available via phone, because the smartphone is now the primary tool for communication. This is the expectation of a generation that wants to meet its most important needs in a single application: buy a game, connect with peers via social media, enter an alternative reality and enjoy dozens if not hundreds of other services that may not even be known today.

Is it true that technology gives broad access to services that were previously only available to private banking customers through a concierge? Will a virtual concierge be “embedded” in an application?

Private banking offers multiple solutions that support our customers in many aspects, from helping them choose a holiday package to buying tickets for the Vienna Philharmonic New Year’s concert or an event at New York’s Metropolitan Opera. Perhaps in the not-too-distant future, a solution will also be available where a virtual concierge can be accessed by anyone using an app. It seems that for the younger generation this form of communication will be more convenient and transparent than talking to a flesh-and-blood concierge. We know that private banking relies on long-term relationships and mutual trust. Private banking customers like to have personal contact with a bank representative, and the bank supports them on various levels, not only those related to finance and wealth management. But the service model is changing along with the needs of customers. We need to adapt so that customers do not go to our competitors for the solutions they expect.

Is the entry of banks into the world of digital NFTs (non-fungible tokens) or the virtual world of the metaverse a must in business or still a kind of reconnaissance? Or does it merely boost reputation?

I firmly believe in the development of Web 3.0 technologies and the wider metaverse. This is a direction we should follow if we want to open ourselves up to the needs and expectations of younger generations of customers who are already using a range of solutions related to, for example, cryptocurrencies, but which should not be confused with NFTs or the metaverse. Regulatory solutions are still lacking in this area, especially with regard to customer security, but it seems that it is only a matter of time before they are established. A wide range of possibilities in the virtual world is becoming available, for example, with the digitisation of art works, the creation of a range of various tangible and intangible goods, unique digital objects that have a certain value. Within two years, we want to offer further financial services based on blockchain, mainly in the NFT format. However, the metaverse is something else. Bank Pekao S.A. is present in the metaverse with our PeoPay Gallery on the ESKA World platform. There are artists, fashion designers and car manufacturers in the metaverse so obviously banks must be present there, too.

Speaking about the future, I want to ask about the priority for affluent customers who are considering what to do with their money.

Invariably and above all, the priority is security. The uncertainty associated first with the pandemic and now with the war beyond our eastern border has made everyone aware of the risks to which we are exposed. This is why the security of the assets and investments entrusted to us is fundamental. The banking industry, consisting of institutions of public trust, has a great deal of comfort because we offer customers products that are fully secure and meet their needs. We are now back on the market with a treasury bond offering, including both digital sales and sales in branches. In difficult times, credibility and trust are particularly important.

Where does the Polish banking industry stand today on the road to building banking of the future? In your opinion, are Poles open to innovation?

I am very proud of where we are today. The Polish banking industry is developing very quickly and adapting flexibly to global trends. It is now the “old” Europe that is chasing us in the race for financial solutions, not the other way around; not to mention the United States, where cheques are still in common use. The challenge for us is the Far East, where credit cards are becoming a thing of the past and people pay almost exclusively with apps. In Poland, too, credit cards will probably soon be history as we are already paying more often with phones or watches. As the digital transition in banking started quite late, we have developed the best, most modern and most customer-friendly solutions in the field. I am optimistic about further developments in this area.

Poles as a nation are very flexible, and we adapt quickly to a changing world.

We have shown that we can quickly adopt state-of-the-art technology, not only in finance or banking. The young generation is driving change and will determine the shape of banking of the future. ©℗

Interviewed by Jacek Pochłopień