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Poland’s Financial Innovation Landscape Booms as Cashless Payments and FinTech Solutions Gain Popularity

Warsaw, Poland - The payments industry in Poland has been growing at a gradual pace over the past five years, driven by the increasing popularity of cashless payments.

Growing Trend of Cashless Payments

According to recent figures from the National Bank of Poland (NBP), the total number of cashless transactions has more than doubled since 2016, rising from 3 billion to 7 billion in 2021. The value of these transactions has also seen significant growth, increasing from PLN 210 billion to PLN 452 billion over the same period.

The popularity of non-card payment solutions such as BLIK, which was established by six major banks in Poland in 2015, has been a key factor in this growth. BLIK allows users to make transactions using a six-digit code generated in their banking app, and can be used for e-commerce purchases, ATM withdrawals, and peer-to-peer transfers.

Financial Management Industry Sees Significant Growth

Poland’s financial management industry is another key segment that has seen significant growth over the past few years. Companies involved in this sector provide solutions for more accurate and convenient management of finances, including aggregating information from multiple accounts, personal savings management, spending forecasts, and automated business accounting.

Insurance Industry Sees Shift towards Targeted Solutions

The Polish insurance industry has also seen significant changes over the past few years. The traditional life insurance market has been declining, while the wealth insurance segment has been growing steadily.

  • The value of the wealth insurance segment nearly doubled between 2014 and 2021, from PLN 24 million to PLN 47 million.
  • This shift towards targeted solutions is expected to continue, providing new opportunities for FinTechs in the insurance industry.

Crowdfunding Industry Experiences Significant Growth

The crowdfunding industry has also seen significant growth over the past year, with the number of companies involved in this sector growing by 89%. The main driver of this trend has been the increasing popularity of equity crowdfunding in Poland.

  • In 2022, the traditional crowdfunding market leader Zrzutka.pl raised a record-breaking PLN 305 million.
  • Both segments of FinTech crowdfunding are expected to continue experiencing significant growth, driven by favorable regulatory changes and increasing demand from retail investors.

Lending Industry Sees Growth

The non-banking lending industry in Poland is also growing steadily, with 523 institutions allowed to grant consumer loans. The 47 biggest companies make up 80% of this market, but new entrants are disrupting the status quo by offering innovative solutions.

Conclusion

Overall, Poland’s financial innovation landscape is booming, driven by the increasing popularity of cashless payments and FinTech solutions. As the industry continues to grow and evolve, it is likely to attract even more investments and opportunities for businesses and consumers alike.