Internet technology and its significant development enabled banks to attract new customers and raise service standards through mobile internet solutions. The rapid technological leap brought a lot of good for improving the quality of customer service, and initiated healthy competition on the market of broadly understood financial services. An era has begun in which opportunities have opened for non-bank institutions. They are most often the first to introduce solutions regarding modern services or products used by customers waiting for mobile technological innovations.
Internet technology – who takes over banking services?
Mainly non-banking financial institutions armed with modern technological solutions, which relate, for example, to the payment system or loan services, effectively compete with banks for clients. Recently, the biggest threat to banks are institutions that allow to store deposits or make monetary settlements. In addition, they have the option of issuing payment instruments, such as debit cards signed with international payment institutions. The services offered are often cheaper than in banks and equipped with the option of settling payment transactions in many currencies from one account, apart from the transfer fees typical for banks related to currency conversion of the transaction currency.
Referring to institutions that are not banks, it is impossible not to mention modern solutions. These solutions have been very popular in recent years and are not reserved exclusively for banks. When analyzing the process of taking over services from banks by non-bank institutions, it is also worth paying attention to services related to the small loans market. In particular, I would like to draw attention to so-called PLN 0 loans.
Internet technology – loan for PLN 0.
Taking a loan of 1000 PLN from the lender, we give away 1000 PLN evenly after 30 days. To receive the first loan for PLN 0, simply register as a new customer with the lender offering such a product and submit an online application. However, certain conditions must be met, i.e. you must have a valid ID, bank account and mobile number. Persons with citizenship other than Polish are unlikely to take advantage of this offer. The loan should be returned within the time limit specified in the contract, otherwise it will not be free.
What is the reason for taking over banking services by non-banking institutions?
This is a paradox when there is a demand for non-banking services on the Polish banking market, where several dozen banks operate. What is a cause of it?. Well, despite the high competition and market saturation with banking services, new players are entering offering universal solutions for a symbolic fee. In return, they provide a package of mobile services at the highest level of functionality and security. Their activities are not subject to banking regulations and requirements to which banks are subject. In a word, the activities of these institutions are cheaper and not subject to obligations related to payment services and more.
Similarly, in the case of lending, I do not specifically use the word lending, because this term is reserved only for banks. The amendment to the Anti-usury Act, effective from March 11, 2016, has reduced the maximum cost of payday loans, but has not stopped their popularity. Since the entry of the Act, much has changed, even the fact that the quality and speed of services offered does not differ from banking services in this respect. It is not expected that these services will go in a direction unfavorable to recipients. Fortunately, the Office of Competition and Consumer Protection protects consumers, which takes care of their rights by eliminating dishonest entrepreneurs.