IT solutions for the finance and banking sector in Poland – overview and key trends
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IT solutions for the finance and banking sector in Poland – overview and key trends
Table of contents Methodology
3
Finance sector
4
Condition of the finance sector
4
Legal regulations influencing IT investments Key market trends About PMR Contact PMR
6
10
17 17
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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IT solutions for the finance and banking sector in Poland – overview and key trends
Methodology
market This report was prepared with the use of PMR Market Insight methodology. PMR’s proprietary Market Insight methodology supports the comprehensive development of industry analysis reports. It defines how data should be gathered for such reports and, once collected, how it should be analysed as to obtain a reliable picture of the researched market. PMR Market Insight also precisely defines report content and structure. Industry reports prepared with PMR Market Insight methodology rely on information garnered from existing statistical sources, industry (trade publications and the internet), and general and official sources, as well as PMR’s in-house databases and primary research independently conducted by PMR. The sources are selected individually for each project. PMR Market Insight has evolved over PMR’s more than fifteen years of experience in developing industry analyses on markets of the Central and Eastern Europe.
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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IT solutions for the finance and banking sector in Poland – overview and key trends
Finance sector
Condition of the finance sector According to the data made available by the Polish Central Statistical Office, at the end of 2011 in Poland’s finance and insurance sector there were 520 companies employing over nine staff. This means that following the rise in the number of active companies in the period 2009-2010, in 2011 it dropped for the first time. Number of companies in the finance and insurance sector employing 10 and more staff in Poland, 2008-2011 ISB012
488
527
520
2010
2011
420
2008
2009
Note: based on the number of enterprises which sent their end-of-year reports to GUS. Source: GUS, 2012
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The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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IT solutions for the finance and banking sector in Poland – overview and key trends
According to the data compiled by the Polish Financial Supervision Authority, in the first half of 2012 the situation of the banking segment remained stable – its capital base was strengthened and an increase was recorded in the banking sector’s own funds. Also the net financial performance of the segment improved (from PLN 7.79bn in the first half of 2011 to PLN 7.94bn in the first half of 2012, i.e. by PLN 152m or 1.9%). Improved performance was recorded by 472 banks and branches of credit institutions accounting for 68.8% of the segment’s assets, while other operators experienced deterioration. However, it should be noted that despite the net performance improvement observed throughout the entire half of the year, in the second quarter of 2012 the results were poorer, with 25 organisations recording a loss. Net financial result of the banking segment in Poland (PLN bn), 2007-2011 ISB013
15.70 13.64
13.56 11.42 8.28
2007
2008
2009
2010
2011
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Source: KNF, 2012
In the first half of 2012 the insurance segment generated PLN 4.13bn profit (6% lower than in the corresponding period of the previous year). At the end of the first quarter of 2012 61 domestic insurance societies operated in Poland, two fewer than at the end of the first half of 2011. At the same time, the total number of foreign insurance operators from EU Member States which have notified their intention to operate in the territory of Poland by virtue of the freedom to provide services otherwise than through a branch stood at 624, while the number of those intending to set up a Polish branch was 23, with one EU-based reinsurance company also planning to enter the Polish market. A year before, at the end of the second quarter of 2011, the total number of foreign insurers notified in Poland by virtue of the freedom to provide services or operating through a branch, amounted to 556 (including 17 branches). Apart from the number of active operators, another factor reflecting the development of the banking segment and the presence of new technologies in it is the number of ATMs active in the country. According to NBP (the National Bank of Poland) at the end of the first half of 2012 almost 18,000 of those devices were in use in Poland. This represents an increase of 997 devices. The rise in the number of ATMs was accompanied by the increase in the number of transactions completed via those devices. In the first two quarters of 2012 about 192m transactions were completed, 10% more than in the first half of 2011, when their number was 175m.
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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IT solutions for the finance and banking sector in Poland – overview and key trends
Number of ATMs in Poland, Q4 2009-Q2 2012 ISB014
15,714
Q4 2009
16,256 16,017 16,281 16,463 16,508
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Source: NBP, 2012
16,953 17,057
Q2 2011
Q3 2011
17,950 17,500 17,761
Q4 2011
Q1 2012
Q2 2012
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Following the first two quarters of 2012 the number of branches, local offices and outlets remained practically the same as in the previous year. According to KNF, this figure was 13,900. It should be noted that for 2012 BNP Paribas planned the enlargement of its network by 30 facilities. Citybank Handlowy, in turn, intended to close 60 of its retail outlets. As a consequence, the number of local offices remains unchanged in 2012.
Legal regulations influencing IT investments In the banking segment the investments in IT and in telecommunications are subject to recommendations issued by KNF (Polish Financial Supervision Authority). In the third quarter of 2012 KNF started the process of updating those recommendations (Recommendation D) prepared as long ago as in 2002. In October 2012 the draft developed by KNF was published and consulted with the banking community. At the beginning of January 2013, KNF issued an amended version of Recommendation D. The Authority expects that the amended Recommendation D will be implemented by the banks no later than by 31 December 2014.
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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IT solutions for the finance and banking sector in Poland – overview and key trends
Main areas covered by Recommendation D for the banking segment in Poland, 2012 ISB015
Strategy and organisation in areas of IT technology and of ICT environment security Roles of the management board and supervisory board Management information system
Development of ICT environment Projects related to the ICT environment Development of IT systems
Maintenance and operation of ICT environment Data management Data architecture management
Strategic planning
Data quality management
Rules of cooperation between business and technical areas
Software management, architecture, components and updates and management of capacity and capability of components and of ICT infrastructure
Organisation in areas of IT technology and of security of ICT environments Organisational structure Segregation of duties Human resources
Security management in ICT environment System for security management in ICT environment Identifying risks related to security of ICT environment Risk estimation, control and mitigation, monitoring and reporting risks related to security of ICT environment Classification of information and IT systems
Cooperation with external service providers
Managing security incidents in ICT environment
Access control Mechanisms for logical and physical access control Protection against malicious software User support Employee education
Formal and legal certainty Roles of internal and external audit
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Source: KNF, 2012
The document includes 22 recommendations divided into the following areas: strategy and organisation in the areas of the IT technology and of the ICT environment security; development of the ICT environment; maintenance and operation of the ICT environment; security management in the ICT environment. Compared to the previous version of Recommendation D, provisions were introduced concerning such issues as data management (including data quality management), rules of cooperation between business and technical areas, a management information system, areas of the IT technology and of the ICT environment security and cloud computing. Also supervisory expectations were updated and clarified as regards such issues as strategic planning in the areas of the IT technology and of the ICT environment security, implementing new and modifying existing IT solutions, cooperation with external service providers and managing risks related to the ICT environment security.
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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IT solutions for the finance and banking sector in Poland – overview and key trends
Legal regulations have a major impact on IT investments in the banking sector.
According to KNF, banks and credit institutions should comply with the recommendations contained in the document. However, in the introduction to the draft KNF stresses that it is aware that banks will implement the recommendations in different manners due to the differing conditions in which they operate, the scale of their business and their risk profiles. As a result, the descriptions and comments accompanying individual recommendations should be treated as a collection of good practices to be applied subject to the principle of proportionality. This means that the application of those practices should be dependent on such factors as their relevance for a bank’s specific nature and risk profile and the characteristics of its ICT environment as well as the cost/benefit ratio of their implementation, also from the viewpoint of customer security. On the other hand, KNF expects that the scope and manner of implementing the provisions included in the recommendation will be based on an in-depth analysis and supported with appropriate arguments by the banks. Legal regulations also have a significant impact on the market structure itself. The perception of IT suppliers has been changing because of the increasingly close integration of the Polish banking system with the EU system and the growing number of regulations originating from Brussels. In the past local players used to enjoy an advantage as they were familiar with the local regulations and the relationships between banks and policy-makers. Given the constantly rising number of EU regulations, international suppliers have been gaining more and more significance. The essential regulatory changes introduced by the EU include the annual updates of SWIFT codes or the implementation of the EU Directive concerning deposit guarantees. However, not only EU regulations lead to IT changes in Polish banks. 2013 is to see the entry into force of FATCA (Foreign Account Tax Compliance Act), an American regulation based on which banks worldwide will have to disclose to American tax authorities the information concerning the accounts of US citizens living in their territories. Other provisions include the EU Directive concerning mortgage loans, changes in the rules on reporting of credit exposure and data presentation and, finally, the introduction of the tax on financial transactions such as the exchange of shares or bonds, at present debated in the EU. The issue of financial institutions’ IT investments is also referred to in the Banking Law with respect to the use of outsourcing by banks. This cooperation model is covered by the provisions of Article 6c of the Banking Law, pursuant to which banks, when entering outsourcing agreements, must satisfy numerous conditions, while KNF obtains the right to effectively supervise the performance of the outsourced tasks, including, in particular, controlling their execution at every stage. KNF also has the right to order the bank, by way of a decision, to undertake appropriate measures in order to change or terminate an agreement pursuant to which tasks have been outsourced. One of the methods of reducing IT spending in the banking sector is the optimisation of architecture and infrastructure through cloud computing. The Polish law makes it difficult for the banks to use public clouds. For this reason banks prefer private clouds. However, because of the evolutionary character of changes in the architecture and infrastructure such implementations in banks progress slowly and gradually.
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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IT solutions for the finance and banking sector in Poland – overview and key trends
Structure of the market of IT solutions for the insurance segment in Poland (%), by selected players, 2011 ISB024
Others
Asseco Poland 16.1%
26.4% ATENA 11.7%
Nextira One 2.3% SAS Institute 2.5%
IBM 10.7%
BIW “Koncept” 2.7%
Blue Media 6.6%
ZETO Katowice 4.0%
Oracle 6.5%
ZETO Bydgoszcz 4.9% Note: shares in the revenue of selected 40 players supplying the insurance segment in Poland. Estimates. Source: PMR based on Computerworld, Teleinfo, 2012
Comarch 5.7%
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Selected contracts for supply of IT solutions to the finance sector in Poland, 2011-2012 ISB025
Supplier Asseco Poland
Contracting company Idea Bank
Asseco Poland
Warta Group
Asseco Poland
PKO BP Bank Ochrony Srodowiska Bank Pekao PTE Emerytalne Aviva BRE Bank Bank Spoldzielczy Rzemiosla in Krakow Pocztowa Agencja Uslug Finansowych Bank Ochrony Srodowiska
Asseco Poland Asseco Poland Comarch Comarch Comarch Comarch Comarch Comarch
Rabobank Polska
Comarch
Narodowy Bank Polski
HP
Alior Bank
HP
Kredyt Bank
IBM Infovide-Matrix IT BPS, Wincor Nixdorf, Callatay & Wouters, Deloitte Microsoft
PKO Bank Polski Generali Polska PBS Kredyt Bank
Sygnity
Bank Zachodni WBK
Sygnity Sygnity
Lucas Bank Invest Bank Polski Bank Przedsiebiorczosci
Sygnity
Contract description Implementation of a central system based on the solution def3000/suite Development of an integrated IT system (Zintegrowany System Informatyczny, ZSI) Implementation of three new versions of an integrated IT system and extending the development and support of the central IT system for another three years Launch of the transaction system and the general ledger – last stages of implementing the central system def3000 Implementation of the reporting system Sara Implementation of Comarch Asset Management Implementation of Comarch Custody 2 IT security audit Implementation of Comarch Commission & Incentives Implementation of the support system for the sale of credit products to retail customers Comarch Credit Process Management Implementation of Comarch Internet Banking for the support of corporate clients Supply of updates for Microsoft software licences under the three-year licence programme Microsoft Enterprise Agreement and Microsoft Select as well as support for this programme; PLN 21.77m (gross) Implementation of the central system Profile (Fidelity) Analysis of the transactional system with a view to introducing changes in the new central transactional system and in satellite systems IBM InfoSphere Master Data Management Server for PIM and servers Implementation of a data warehouse project Introduction of the central system THALER on SAP; agreement termination by the contracting company Center Configuration Manager Extension of the scope of support services for an electronic banking system for corporate clients and support for the migration of the bank's customers from the system Minibank24 to iBiznes24. The contract is an extension of an agreement concerning the implementation of an electronic banking system concluded with Bank Zachodni WBK SA in 2009 Support services for a retail banking system Support services for a central banking system Implementation of the central system FLEXCUBE
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Source: PMR, 2012
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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IT solutions for the finance and banking sector in Poland – overview and key trends
As regards the chief buyers of IT solutions in the finance sector, several important developments should be mentioned. In June 2012 a new bank, Alior Sync, pursuing the latest trends in internet and mobile banking, entered the Polish market. The investment in the bank’s platform amounted to PLN 50m. In the creation of Alior Sync technologies from the following suppliers were used: IND (a transactional system and a personal finance management application), Alfavox (a contact centre platform), Blue Media (quick transfers), Oracle (Database Enterprise Edition, partitioning and the cluster system Real Application Clusters and diagnostic tools) and HP (server infrastructure). According to its business plan, the bank anticipates winning a million clients in four years. Towards the end of the first quarter of 2012 development plans were announced by mBank. According to the announcement the bank’s investments should exceed PLN 100m. As emphasised by its representatives, the new bank’s investments are targeted mainly at the segment of young people. It will be fully integrated with Facebook, thanks to which it will be possible to make a wire transfer to another user or take advantage of special offers together with friends. Moreover, the system is also to be available on smartphones and tablets. The new mBank will be built from scratch, independently from the existing platform which it is to ultimately replace. Also ING is expanding its IT resources in Poland. At the cost of about PLN 80m ING Services Polska, a company providing e.g. IT services to the ING Group in various countries, will extend its IT centre and establish a research and development centre in Katowice. The Katowice-based IT centre will develop software, test and manage applications and administer databases. Besides, it will ensure the security of the processes implemented and of the data transmitted.
Key market trends The finance sector is characterised by a high penetration of IT solutions. For the banks the importance of new technologies in the competition for customers is an incentive to invest in IT. In the context of intense competition, new channels for communicating with customers are becoming vital. The internet channel is one of the latest solutions providing the customer with access to bank products and services. According to the data presented by the Polish Bank Association, at the end of the first half of 2012 in Poland electronic banking services had 10.7m active users, 200,000 more than at the end of the first quarter. At the same time, towards the end of the period under review the number of individual customers having signed agreements providing them with access to internet banking services arrived at 19.2m, 722,000 more than at the end of the first quarter of 2012. The popularisation of the internet as the new sales and customer contact channel forced banks to re-asses the position and role of IT.
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
10
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IT solutions for the finance and banking sector in Poland – overview and key trends
Number of individual customers using electronic banking services in Poland (m), 2006-Q2 2012 ISB026
10.14
9.15
4.30
2006
6.30
5.00
2007
2008
10.53
10.73
Q1 2012
Q2 2012
7.40
2009
2010
2011
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Source: Polish Bank Association, 2012
Internet banking is a standard in Polish banks now and the investments in the development of new channels focus on emerging segments. An important channel (also classified as electronic banking) also experiencing rapid growth in the recent years is the mobile access to banking services. Such access is possible both via a website and through a special application. According to a survey conducted by Money.pl, in 2012 86% users of mobile banking accessed such services through a website. 56% respondents to the same survey reported using mobile banking services by means of a mobile telephone. This mean that most mobile phone users continue to use mobile banking services through a website rather than through a special application (8%). Other ways of accessing mobile banking services accounted for marginal shares in the group of interviewees.
There were 10.7 million e-banking users in Poland in H1 2012.
Shares of internet users utilising various ways of access to mobile banking services in Poland (%), Q2 2012 ISB027
Through a telephone service or a machine Through SMS codes 4% Through a special application 8%
1% Other 1%
Through a website 86% Note: survey conducted among 10,817 internet users in Q2 2012. Source: Money.pl, 2012
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The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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11
IT solutions for the finance and banking sector in Poland – overview and key trends
It should be added that the number of mobile internet users has been growing from year to year faster than the number of internet users in general. Also smartphone penetration in Poland has been rapidly increasing. In 2011, according to IDC, 10.8m mobile telephones were sold in Poland, including over 3.5m smartphones. This makes it possible to forecast more dynamic development of the banking services in the future. In the recent years most of the major banks in Poland started offering special applications for telephones. However, the propagation of such applications is hindered by the multiplicity of operating systems used by telephone manufacturers. Only Raiffeisen Bank and Bank Pekao developed applications for all the popular operating systems. Most banks limit their platforms only to the most popular systems, Android and Apple iOS. The decision to refrain from developing a special application is also connected with the high costs of launching a system and the still limited interest among customers. The banks keep analysing the market, verify its potential and examine the risk of investing in mobile banking. Until recently mobile banking services were targeted at individual customers and microenterprises. However, in November 2012 ING Bank Slaski and Bank Milennium announced the launch of internet banking services for large and medium-sized companies. Both Millenium and ING report significant interest in the services displayed by large and mediumsized enterprises. According to a survey commissioned by ING, companies not using mobile banking services would be potentially ready to use them if an appropriate level of security was ensured – this opinion was expressed by 52% of the interviewees. Further important factors included the ability to control the bank account at all times and fast access to the account through a telephone. Features that could encourage companies to use mobile banking services in Poland (%), 2012 ISB028
Secure connection ensured (encryption)
52%
Control over the bank account at all times
49%
Fast access to the account through a mobile telephone at any time
45% 38%
Performing transactions from various places worldwide Special free mobile banking application for the user's telephone
34%
Ability to use mobile banking services through various types of telephones
29% 22%
None Other
1%
Note: the survey was conducted on a sample of 353 enterprises not using mobile banking services for business purposes. Source: ING Bank Slaski, 2012
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In the next few years mobile banking will be an additional element of the services offered, its significance steadily growing. Due to the intensified interest in individual mobile banking modules, in the future the banking segment will focus primarily on enhancing those functions. Besides, more possibilities in this respect are offered by special mobile applications.
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
12
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IT solutions for the finance and banking sector in Poland – overview and key trends
The high level of investments by the Polish banks observed in the recent years is reflected in the innovativeness of the banking segment. According to the data presented by the credit card processing company Visa, in terms of the number of terminal devices enabling contactless payments Poland is one of European leaders. At the end of the first quarter of 2012 already over 100,000 terminals of this type were active in Poland. This means that one in three terminal devices installed in Poland accepts quick payments with contactless cards. The introduction of those devices entailed development in the area of contactless payments. However, the progress in this area is slower. Another problem that continues to hamper the creation of mobile payment solutions is the excessive number of standards for using telephones in contactless payments. Moreover, the debit card systems still have a very strong market position. This situation will be changing in the coming years as the top mobile phone manufacturers will invest in the development of the NFC (Near Field Communication) technology. The development of NFC payments is supported by mobile operators. In November 2012 Orange announced the introduction of contactless payments in cooperation with mBank and MasterCard Europe. In the technology used by Orange, contactless payments are possible owing to modifications to SIM cards (for the customer this involves card replacement). In the same month contactless payments were also introduced by T-Mobile. The operator’s partners are mBank and Polbank. Another reason why electronic banking will be gaining in significance in the banking segment is the shift in the banks’ strategy – from product-oriented to customer-oriented. Also not without significance will be the “multi-channelling” approach adopted by financial institutions seeking to use multiple channels to contact their customers. This approach is understood not only as providing the customer with access to an e-banking application, mobile channel, hotline or a branch office but primarily as directing appropriate customer groups to appropriate channels. Banks will contact different customer groups through different channels, depending on their preferences. This requires not only applications for relevant devices but also sufficiently flexible central systems and analytical tools to be used by banks. The segment of central systems is one of those segments of the IT market for which some of the suppliers present on the market have high hopes. Already in 2011 the suppliers expected a wave of central system replacements in the biggest Polish banks. Because of the economic downturn affecting the banking segment in the period 2008-2009 the finance sector cut down on its IT investments at the time. As the situation improved in 2010 and IT expenditure rose again, suppliers also anticipated in their forecasts for 2011 larger investments in the replacement of central systems. Despite those projections, the information obtained by us indicates that the expected wave of central system replacements did not start in 2011. One of the few companies to begin the replacement of its central system was Kredyt Bank. The bank used to use the system Profile (Fidelity), implemented in 1999. At the time the system was implemented and supported by Computerland (now Sygnity). The bank decided to continue using the system under its existing licence. However, the system will be upgraded to such a great extent that the bank’s representatives declare that it will be implemented from the beginning. In mid-2011 the bank began the analysis of the new version of the system together with HP. Following an analysis the bank is to sign the implementation agreement. According to the timetable, system tests should begin in the second quarter of 2013 and the implementation is to be completed towards the end of 2013.
The development of NFC payments is supported by mobile operators.
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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13
IT solutions for the finance and banking sector in Poland – overview and key trends
It should be noted that similar expectations concerning a wave of central system replacements were also reported by the suppliers for 2012. Factors possibly influencing the decision as regards system replacement include new EU regulations and the necessity of adapting IT systems to them. A new central IT system for a large bank means an investment ranging from PLN 40m to PLN 50m, while for a medium-sized institution the range is from PLN 20m to PLN 30m. The performance of such a contract takes about two years. The smallest central system may be implemented in a smaller bank for just about PLN 2m. The absence of information on central system replacements does not imply a total absence of investments in this segment. The IT market linked with central systems for banks is worth about PLN 140m per year. However, as demonstrated by the example of Kredyt Bank, those are primarily expenses on upgrading existing systems and the replacement of individual modules. The number of new implementations is low. This means that owing to their high value they may have a decisive impact on the condition of this narrow market segment. Frequently the decision to replace the existing central system results not only from its obsolescence. Also ownership aspects are at play – the decision to replace the central system is a consequence of the acquisition and unification of IT resources in a newly formed group. An increase in the IT investments by financial institutions is also boosted by their efforts to be highly competitive. Even if a customer is strongly linked with a bank because of such a product as a mortgage loan or a consumer credit, this will not save the bank from losing the customer in favour of another bank, offering more competitive services. Frequently customers use the services of several banks at the same time. Retail banking remains the dominant branch in the Polish banking segment. This segment is the primary source of revenue for the entire sector and continues to be its main growth driver. In the context of IT investments by banks, it should be emphasised that the customer loyalty towards banks operating in Poland has been observed to decline from year to year. Changes of confidence in the banking segment over the last 12 months in Poland (%), 2011-2012 ISB029
50%
No change
It increased
59% 11% 15%
39%
It decreased
26%
2011 Note: survey conducted on a sample of 500 users of banking services. Source: Ernst & Young 2012
2012
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The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
14
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IT solutions for the finance and banking sector in Poland – overview and key trends
A survey conducted by Ernst & Young demonstrates that the share of customers using the services of more than one bank has been growing from year to year. In 2011 15% respondents used the services of three or more banks. In 2012 this share nearly doubled. At the same time, the share of interviewed customers using the services of only one bank shrank by 15 p.p., from 47 to 30%. The share of respondents using the services of two banks remained unchanged. Shares of respondents using services of one, two and more banks in Poland (%), 2012 ISB030
2012
30%
2011
40%
47%
30%
38%
1
2
Note: survey conducted on a sample of 500 users of banking services. Source: Ernst & Young 2012
15%
3 banks or more
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Thus banks are under the pressure to offer more and more value added in their electronic channels in order to bind the customers to themselves. Increasingly frequently they introduce analytical tools which, based on the information on the customer’s financial habits, offer appropriately selected products of the bank. In the time of low margins, offering such integrated solutions and flexibility in reacting to market changes and competition movements will be key for a bank’s continued competitiveness. Also at a time when bank offers are becoming increasingly similar one of the distinguishing features is the efficiency of the customer service achieved also through the use of IT resources. Another important trend as regards IT investments in the finance sector is the change in the banks’ approach to IT suppliers. With a view to gaining greater flexibility and fast adaptability, banks and other financial institutions more and more often use the services of several suppliers instead of relying on just one IT provider.
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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IT solutions for the finance and banking sector in Poland – overview and key trends
The necessity to ensure customer loyalty is noticeable not only in the banking industry but also in the insurance segment. Enhanced customer loyalty may significantly contribute to the potential of upselling products to a bank’s existing customers. Even though according to the data presented by Ernst & Young this ratio is quite high compared to the rest of Europe, only 24% customers in Poland report purchasing more than one product from the same insurer. Shares of customers who purchased more than one product from the same insurer in selected European countries (%), 2012 ISB031
Italy
25% 24%
Poland Germany
21%
Spain
21%
France
18%
Turkey
18%
Netherlands United Kingdom
16% 11%
Note: survey conducted on a sample of 8,532 users of insurance services. Source: Ernst & Young, 2011
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This share is mainly a result of market concentration and not of conscious actions undertaken by insurance companies. On the other hand, 82% interviewees reported that their insurance company had done nothing to retain them. The role of IT manifests itself not only in the analysis of the customers’ needs but also in the manner of communicating with customers. Over half of Poles still prefer personal contact with a consultant when entering into an insurance agreement. As a result, the sales through websites continue to account for a minority of all the policies taken out in Poland. Nevertheless, efficacious customer service, both via the internet channel and through agents requires an IT system that operates efficiently and fast. Not without significance is the fact that prior to concluding an agreement a third of the customers still look for information in the internet.
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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IT solutions for the finance and banking sector in Poland – overview and key trends
About PMR
PMR is a market research and consulting company active within over 25 countries of Central and Eastern Europe. Since 1995 we have assisted more than 500 global corporations and many other regional companies to continuously increase their market share, successfully enter new territories and optimise costs. We specialise in construction, retail, pharmaceuticals, healthcare, IT and telecommunications. However, our experience extends to many other industries. Our 100 in-house professionals fluently speak together more than 15 languages. In addition to our tailored research and business consulting projects we also publish annually almost 100 ready sector reports and information services.
Contact PMR PMR Ltd. Sp. z o.o., ul. Dekerta 24, 30-703 Kraków, Poland tel. /48/ 12 618 90 00, fax /48/ 12 618 90 08, www.pmrcorporate.com Customer service tel. /48/ 12 618 90 30 e-mail:
[email protected] Marketing tel. /48/ 12 618 90 20 e-mail:
[email protected] You are welcome to contact the author of the report: Paweł Olszynka, Head IT&Telecoms Analyst tel.: /48/ 12 618 90 61 e-mail:
[email protected]
The report is prepared by PMR in collaboration with ISI Emerging Markets. All data contained in the report are provided by PMR.
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PMR Research provides a full array of qualitative and quantitative research methodologies:
international fieldwork in Eastern Europe central location / hall tests consumer research brand image studies product & package tests B2B projects healthcare research industry analyses
PMR is a British-American company providing market information, advice and services to international businesses interested in Central and Eastern European countries as well as other emerging markets. PMR key areas of operation include business publications (through PMR Publications), consultancy (through PMR Consulting) and market research (through PMR Research). Being present on the market since 1995, offering high international standards in projects and publications, as well as providing one of the most frequently visited and topranked websites, PMR is one of the largest companies of its type in the region.
For more information please contact us at: tel. /48/ 12 618 90 80, fax /48/ 12 618 90 08,
[email protected]
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