Transcript Poland - introduction

THE POLISH
BANKS
ASSOCIATION
The Foundations and Drivers of
the Innovative Banking Sector in Poland
Mieczysław Groszek
Executive Vice President
The Polish Banks Association
ul. Kruczkowskiego 8
00-380 Warsaw
tel. +48 22 48 68 180
www.zbp.pl
30 September 2014, Boston
THE POLISH
BANKS
ASSOCIATION
Achievements of the Polish Transition 1989-2014
Poland Then and Now
We, the
People!
Democracy & Market
Free
market!
GDP per capita
(Intl. dollars, PPP)
22,201
6,154
1989 1994 1999 2004 2009 2014*
Source: IMF.
586
Inflation (annual, %)
Tertiary education
enrolment rate (%)
1.5
52
13
1989 1994 1999 2004 2009 2014 *
Source: IMF.
1989
ul. Kruczkowskiego 8
00-380 Warsaw
tel. +48 22 48 68 180
www.zbp.pl
* Forecasts.
2014*
Source: Central Statistical Office.
Foundations and Drivers (1)
THE POLISH
BANKS
ASSOCIATION
Annual GDP growth 1989-2014 (%)
10
 Stable
economic
growth
5
0
-5
-10
1989
1994
1999
2004
2009
Source: IMF.
* Forecast.
Cumulative GDP growth 2007-12 (%)
 Resistance
on economic
crisis
ul. Kruczkowskiego 8
00-380 Warsaw
tel. +48 22 48 68 180
www.zbp.pl
Source: IMF.
2014*
Foundations and Drivers (2)
No. of commercial banks
THE POLISH
BANKS
ASSOCIATION
 Prudent and competent banking
87
39
supervision (but not blocking
innovations):
9
1989
1993
2014
No. of cooperative banks
1663
1. Consolidation of banks based on
takeovers or mergers approved by FSA.
2. Recovery and resolution under the
1653
supervision of FSA.
566
3. Sound structure of the banking system
as a result.
1989
ul. Kruczkowskiego 8
00-380 Warsaw
tel. +48 22 48 68 180
www.zbp.pl
1993
Source: Narodowy Bank Polski
(national bank of Poland)
2014
1989
Foundations and Drivers (3)
THE POLISH
BANKS
ASSOCIATION
100%
2008
28%
72%
Domestic
Foreign
2014
38%
62%
ul. Kruczkowskiego 8
00-380 Warsaw
tel. +48 22 48 68 180
www.zbp.pl
Source: The Polish Financial Supervision Authority.
 Mixed structure of foreign and domestic
capital in banks:
1. Inflow of know-how.
2. Fast modernization of the obsolete banks
inherited from the communist era.
3. Good mixture between the established
corporate culture of the western banks and
the dynamism of the Polish employees.
 POLISH SPECIFICITY: INNOVATIONS DRIVEN BY
LARGE INSTITUTONS BOTH DOMESTIC AND
FOREIGN.
Polish Banks Sound and Resilient (1)
THE POLISH
BANKS
ASSOCIATION
ROE by Country
Austria
Belgium
Cyprus
Germany
France
UK
The Netherlands
Poland
Italy
2008
2.3
-62.3
13.4
-11.4
2.2
-12.2
-12.5
17.0
4.9
2010
6.6
10.8
6.2
2.3
8.3
4.8
7.2
12.5
3.8
2012
4.5
2.6
-178.6
1.3
3.4
1.9
5.9
11.7
-1.2
CAR in the Polish banking sector (%)
15.8
13.3
12.1
13.8
13.1
 Stable: CAR = 15.8%.
 Efficient: ROE = 11.7%.
 Resistant: no single
bank got a bailout in the
crisis.
13.1
11.2
2007 2008 2009 2010 2011 2012 2013
ul. Kruczkowskiego 8
00-380 Warsaw
tel. +48 22 48 68 180
www.zbp.pl
Sources: The European Central Bank and the Polish Financial Supervision Authority.
Polish Banks Sound and Resilient (2)
THE POLISH
BANKS
ASSOCIATION
ul. Kruczkowskiego 8
00-380 Warsaw
tel. +48 22 48 68 180
www.zbp.pl
Innovations in payments:
 More than 50% of bank accounts can be accessed
online.
 12% of mobile phone users are active using mobile
banking.
 5% of mobile phone users pay mobile.
 60% of payment cards are contactless (NFC).
Source: TNS and own sources.
THE POLISH
BANKS
ASSOCIATION
Thank you for attention!
Mieczysław Groszek
Executive Vice President
The Polish Banks Association
ul. Kruczkowskiego 8
00-380 Warsaw
tel. +48 22 48 68 180
www.zbp.pl
30 September 2014, Boston
Polish Payment System – modern but
secure and compliant
Adam Tochmański
Director of the Payment Systems Department
Narodowy Bank Polski
Sibos 2014 Boston
Polish Payment System – modern but secure and compliant
Large value payment systems
(LVPS)
Polish payment system evolution
TARGET2-NBP
EURO
PLN
SORBNET-EURO
Traditional
interbank
settlements in
NBP branches
Retail payment systems
(RPS)
1989
1990
1991
1992
SORBNET2
SORBNET
SORB
1993 1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012 2013
2014
SYBIR
ELIXIR
PLN
BlueCash
Express ELIXIR
EURO
Euro ELIXIR
Polish Payment System – modern but secure and compliant
Payment systems in Poland – 2014
Large value payments
Retail
payments
ELIXIR
gross
ELIXIR
gross
BlueCash
Payment cards
& innovative
payment
intruments
Retail payment systems (RPS)
Interbank payments
Interbank payments from
securities market
net
Express
EuroELIXIR
PLN
EUR
Customer payments
gross
SORBNET2
RTGS
net
gross
TARGET2-NBP
RTGS
Large value payment
systems (LVPS)
RPW
gross / net
gross
kdpw_stream
gross
Securities depository (CSD)
& securities settlement
systems (SSS)
Polish Payment System – modern but secure and compliant
MODERN
Polish
payment
system
 Modern IT solutions
 Different systems for large
value and retail payments
 Short settlement time
 Three SIPS designated
under SFD (SORBNET2,
TARGET2-NBP and
ELIXIR)
 Two immediate payment
systems
 High usage of innovative
payment instruments
(contactless cards,
mobile payments)
 Flexibile approach
towards the needs of
different users
COMPLIANT
SECURE
 Reliable and secure IT
platforms
 International standards
applied
 Ongoing monitoring
 Low share of card frauds
 All payment systems
overseen by NBP
 Ongoing assesment vs
international standards
Polish Payment System – modern but secure and compliant
The role of NBP in the payment system
 Payment System
Council and its
subgroups
Operator
Regulator
NBP
Catalyst
 Polish Banks
Association and
working groups
 Alliance for non-cash
payments and
micropayments
Overseer
 Education –
conferences &
seminars
Adam Tochmański
Director of the Payment Systems Department
Narodowy Bank Polski
+48 (22) 185 27 28
[email protected]
KDPW Group
State-of-the-art post-trade infrastructure
Ph.D. Iwona Sroka – President & CEO of KDPW and KDPW_CCP
Boston, 30 September 2014
join the celebrations
of the 25th anniversary
of economic freedom
in Poland
___________________________________
was established in 1991
was separated in 1994,
as an independent,
join stock company
was created in 2011
17
Polish Capital Market vs. Europe
Equity market
Market Operator
London Stock Exchange Group
NYSE Euronext
Deutsche Börse
BME (Spanish Exchanges)
SIX Swiss Exchange
NASDAQ OMX Nordic
Oslo Børs
Warsaw Stock Exchange
CEESEG - Vienna
Athens Exchange
Boerse Stuttgart
Irish Stock Exchange
CEESEG - Budapest
CEESEG - Prague
Bucharest Stock Exchange
Bulgarian Stock Exchange
CEESEG - Ljubljana
Luxembourg Stock Exchange
Malta Stock Exchange
Bratislava Stock Exchange
Cyprus Stock Exchange
2012
21,37%
15,36%
12,42%
8,31%
5,69%
5,71%
1,42%
0,57%
0,23%
0,15%
0,14%
0,09%
0,11%
0,13%
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
2013
20,56%
15,21%
12,29%
7,48%
6,28%
5,72%
1,11%
0,64%
0,23%
0,18%
0,18%
0,13%
0,09%
0,08%
0,01%
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
Futures market
18
Capital Market in CEE Region
Share of Capitalisation of Exchanges in
the CEE Region
Share of Stocks Turnover in the CEE Region
9%
9%
7%
6%
9%
7%
9%
58%
56%
53%
48%
47%
45%
42%
32%
35%
40%
46%
44%
47%
49%
2007
2008
2009
2010
2011
2012
2013
2%
1%
1%
1%
2%
2%
73%
58%
48%
44%
71%
65%
2%
39%
42%
50%
59%
26%
34%
54%
26%
2007
2008
2009
2010
2011
2012
2013
Share of Numbers of Index Future
Contracts in the CEE Region
25%
20%
23%
14%
11%
8%
30%
75%
80%
77%
86%
88%
92%
70%
Warsaw Stock Exchange
CEESEG: Austria, Czech Republic, Hungary, Slovenia
Bucharest SE, Bulgarian SE, Bratislava SE
2,007
2008
2,009
2010
2,011
2012
2,013
19
At-a-Glance Statistics: August 2014





KDPW participants – 65
KDPW_CCP participants – 38
Issuers – 1152 (of which 77 are foreign)
Deposited equities issues – 1099
Deposited bond issues – 1099


Capitalisation of shares in KDPW – EUR 138 billion (USD 178 billion)
Capitalisation of bonds in KDPW – EUR 139 billion (USD 179 billion)


Number of cleared transactions – cash market: 6.14 M
Value of cleared transactions – cash market: 22 EUR billion (USD 28 billion)


Number of cleared transactions – derivatives market: 1.95 M
Value of cleared transactions – derivatives market: 33 EUR billion (USD 41 billion)
20
KDPW and KDPW_CCP
33%
33%
WSE
•
•
•
•
NBP
Treasury
Stable and credible shareholders
Main objective: safety and stability of financial system
Low risk profile - not-for-profit infrastructure institution
Supervision by Polish FSA (KNF) and ESMA, oversight by Polish
Central Bank (NBP)
KDPW_LEI
33%
***
•
EU registration of KDPW Trade Repository – one of 4 first TRs
registered in Europe
LEI assigning (KDPW_LEI)
Services for energy market (KDPW_GIR)
Planned CSDR authorisation of KDPW
•
•
•
100 %
***
•
•
•
•
EMIR authorisation of KDPW_CCP (3rd in Europe)
KDPW_CCP own capital: EUR 54 M (USD 70 M)
Central counterparty functionality through novation
Reporting to KDPW_TR (non mandatory)
21
CSD Services
Key functionalities:
Core Services
Securities settlement system
Regulated market
Alternative Trading
System
Omnibus accounts for foreign investors

Collective securities accounts on the CSD level, with option to
segregate by investor/group of investors

Hold/Release mechanism (optional)

Cash settlement in central bank: money – PLN in Polish Central
Bank (NBP), EUR in TARGET2

Agent for Securities lending & borrowing - automatic and
negotiated

Settlement and collateral management for repo (Tri-party Repo
Agent)

Partial settlement

CA: information, distribution of proceedings, tax services

GIR - clearing and settlement of energy market transactions

T+2 settlement cycle regarding to CSDR requirements
OTC cash market
Central Depository of Securities
Maintaining securities accounts
at the top-tier level

Initial recording of securities
in a book-entry system
Ancilliary Services
Corporate Actions processing
Operational links to foreign CSDs
Commercial Services
Trade Repository
Numbering Agency (LEI, ISIN, FISIN)
Commodities Clearing House (GIR KDPW)
Tri-Party Repo
CSD authorisation process planned for 2015/2016
22
CCP Services
Key functionalities:
Clearing of trades
Regulated market
ATS
OTC
derivatives
OTC
REPO

Central counterparty functionality through novation

Netting in cash (obligatory) and securities (optional)

Segregation of accounts (individual and aggregated
accounts)

OTC derivatives:
Clearing risk management
SPAN
VaR
Collateral management
PLN
T-bonds
T-bills
WIG20
shares
Bank
guarantees
Supplementary Services
Derivatives trade reporting to KDPW_TR
•
Currently - PLN (FRA, IRS, OIS, Basis Swap, REPO)
•
Planned - EUR (FRA, IRS, OIS, Basis Swap, FX
instruments)

OTC clearing based on MarkitWire and SWIFT Accord
instructions

Guarantee system for negotiated securities lending
transactions

Margins calculated on intra-day and daily basis

STP with WSE trading system (UTP - NYSE Euronext)

Default waterfall and procedures compliant with EMIR

KDPW_CCP own capital: EUR 54 M (USD 70 M)
Authorised in April 2014
23
Future Developments
The KDPW Group conducts its business operations on the basis of the Development Strategy for 2014-2016,
reflecting international trends in financial markets. The strategy defines a diverse business model for
the KDPW Group, while leveraging the specific strengths and potential of the Polish financial market.
Key Strategic Projects of the KDPW Group:
 KDPW_CCP




Integration of transaction clearing from diverse financial markets in Poland: regulated, interbank and commodity
OTC multicurrency instruments
Extending eligible collateral
KDPW




Strengthening the position of the Trade Repository
Further development of securities lending and Tri-Party Repo services
Creation of securities central valuation service
Introducing ISO20022 messaging with participants

Enhanced operational co-operation with other markets in the area of clearing and settlement
24
www.kdpw.eu
www.kdpwccp.eu
Real-time, mobile and contactless – practical
lessons from the evolution of the Polish payment
market
Michał Szymański
Vice President of the Management Board
Krajowa Izba Rozliczeniowa S.A.
30 September 2014, Boston
Real-time (immediate) retail payments
•
•
Facts
– ExpressELIXIR was launched in June 2012 as the second real-time retail
system in Europe
– The CAGR of number of transactions is at the level of 1600%
– The demand is also visible in other EU countries so interoperability
between such seems to be unavoidable
Lessons learned
– The infrastructure creates many new business opportunities like valueadded bank services for corporates (real-time reconciliation and account
reporting) or real- time loans
– Technical implementation by banks may be a challenge
– Despite the 24/7 mode, due to technical reasons some banks are only
available during time windows
Mobile payments
•
•
Facts
– 6 big banks in Poland started an initiative aimed at creating the standard for
mobile payments (Polski Standard Płatności)
– Another big bank runs an independent system
– Both systems are based on ”one-time ticket” authentication
Lessons learned
– When there is demand for POS transactions, P2P payments and ATM
withdrawals seem to create even more value for customers
– Cooperation of banks is a necessary element and a challenge at the same
time
– The simplest possible user scenario (keying in the 6-digit PIN) is prevailing
due to simplicity for customers and merchants and also low technical
requirements
Contactless card payments
•
•
Facts
– More than 90% of all issued cards are equipped with a chip, more than
60% contactless
– Almost 57% of POS are contactless-capable
– 30% of all card transactions are contactless
Lessons learned
– Security fears were visible at the beginning but their intensity has
decreased with time/experience
– Nevertheless some customers want to block the wireless functionality so
there should be a procedure for that
– The POS infrastructure makes mobile NFC technology an attractive choice
for mobile payments
Poland’s banking:
from nothing to innovation
Michał Panowicz
mBank | Managing Director | Products, Marketing & Digital
How to get?...
…From here?...
25
…To there?
YEARS
31
We started where so many emerging markets did…
Poland in 1990
2 retail banks
400 branches / 1 per 96k people
0 (zero) cards
0 (zero) ATMs
~100% cash
585% inflation
0 (zero) foreign Banks
… roughly an equivalent of
banking desert
32
3
Such starting point could have taken us anywhere
Oligopoly
Banking bubbles
Special bank taxes
Protectionism
National champions
Reactive regulation
1990
Sluggish followers
Just OK
Main stream banking
Digital transformation
33
4
STAGE 1: Catching up through foreign investments
90’s
PREMISE
OUTCOME
PRIVATISATION
KNOW–HOW
BRANCHES
CAPITAL
CORE IT SYSTEMS
GOVERNANCE
STABILITY
IT
MODERN PRODUCTS
PRODUCTS
MODERN PAYMENTS
COMPETITIVENESS
34
STAGE 2: Massive innovations pushed by banking startups
2000’s
PREMISE
OUTCOME
MODERN:
COMPETITIVENESS
INNOVATION
DIGITISATION
1. DIRECT
2. ONLINE
3. COSTUMER FINANCE
4. BRANCHES
GOVERNANCE
5. BRANDING
RE-BALANCE
6. SEGMENT
OFFERINGS
MODERNIZATION
DIGITAL & REMOTE
REGULATION
35
STAGE 3: Championing digital transformation
NOW
MOBILE PAYMENTS
ULTRA MODERN DIGITAL
MODERN BRANCHES
TELCO BANKING
36
7
Our work ingreasingly recognized globally – THANK YOU!!!
37
8