Poland is certainly one of the leaders in terms of innovation among the countries of Central and Eastern Europe. This is largely the responsibility of the fintech industry, which now numbers over 300 entities. What exactly is fintech? What solutions do these types of companies offer? Answers to these and other questions are found in this article.
What does the term fintech mean? What are fintechs?
Fintech is a term that was coined by combining the first syllables of the phrase financial technology, referring to financial technology. Fintechs, then, are companies whose activities revolve around the development of digital solutions related to the circulation of money. It is also worth noting that the fintech industry does not include banks, even though they are realistically supporting it, funding it, and competing with fintech solutions. This is because fintechs are considered to be companies that operate online and do not have physical branches serving customers.
Polish fintech industry – diversity and innovation
As mentioned in the introduction, the Polish fintech industry currently consists of over 300 entities. What characterizes them? First of all, diversity, because among them there are both companies offering almost universal services and entities offering specialized solutions whose recipients are mainly financial institutions or other enterprises. It is also worth mentioning that most of the Polish fintechs were established in the last 3-5 years, which makes the industry grow dynamically. New companies with innovative ideas are successively emerging, and based on these ideas, they are creating solutions that enrich the financial sector.
Fintech solutions for the masses
Fintech solutions are so popular these days that we don’t always realize we’re using them. What might be an example? First of all, the highly acclaimed BLIK, a secure mobile payment model. Its popularity has grown significantly during the pandemic because paying with a smartphone allows you to keep your social distance. Polish fintech giants PayU and Blue Media are also growing steadily. These are companies that allow you to make online payments, and with their solutions also available abroad. SkyCasch, an app that allows you to pay for highways and parking meters, as well as purchase public transportation tickets, is also rapidly gaining popularity. The dynamics of its development shows that it can achieve real success in the coming years.
Polish fintechs – online loans and internet exchange offices
In which service categories are Polish fintechs leading the way? Primarily in online currency exchange, or online loans. A great example would be Cinkciarz, an online currency exchange that is known all over the world (also due to an NBA commercial). Apart from him, the best known Polish fintechs offering online currency exchange are Walutomat and Amronet, chasing the leader. Other solutions are offered by Revolut, a provider of a multi-currency card with the functionality of a traditional bank, which is operated through a mobile application. Bancovo, a fintech offering fast online loans, is also well established on the Polish financial market. Here, too, the potential is huge, as this is a market that is growing rapidly and gaining new customers.
It is also worth being aware that Polish fintechs are also comparison websites. The most famous one is undoubtedly Rankomat, which started from comparing insurance offers, and now also offers financial products or the possibility to compare GSM operators’ offers. Comperia, an online comparison engine, operates on a similar basis. Apart from insurance products, financial products or GSM offers, it also promotes non-banking products, such as photovoltaics or leasing. Comparators are fintechs that act as intermediaries between institutions and customers. The latter enable them to find the best deals, receiving a sales commission from the institution in return.
Fintech solutions for companies
The fintechs presented in the previous paragraph offer solutions that are accessible to the masses, which makes them most often used by individual customers. There are also entities in the industry that create fintech solutions for companies, an example of which is crowdfunding. The pioneer in this case is the Beesfund platform, which allows the sale of company shares over the Internet. It is worth noting that it is a fintech that is a leader when it comes to this type of solutions in Central and Eastern Europe. A fintech solution for businesses that both small and large entities can benefit from is online factoring. Such services are provided, among others, by Polish Finiata or SMEO.
X Open Hub – specialized fintech solutions
Among Polish fintechs you can also find entities that offer specialized solutions only for a narrow group of customers. An example is certainly X Open Hub, an entity that creates solutions for banks, brokers, or start-ups. The company provides them with world-class trading technology and multi-asset liquidity. X Open Hub is an enterprise that provides state-of-the-art commerce technology while maintaining a fully open environment. The quality of the developed solutions is evidenced by the fact that X Open Hub currently works with more than a hundred companies from 30 countries around the world.
International success is proof that Polish fintech can be a recognized brand on the global financial market. X Open Hub is currently headquartered in London, but its technology hub is located in Poland, actually in Warsaw. It is also worth knowing that X Open Hub is XTB Limited, an entity that is authorized and regulated by the UK Financial Conduct Authority (FRN 522157).
In conclusion, the Polish fintech industry has great prospects. This is true for small entities as well as those that have already achieved significant success and are now conducting overseas expansion, as exemplified by X Open Hub.
