Loan companies are currently one of the strongest competition for traditional commercial banks in Poland. The non-banking sector is constantly evolving and is growing more and more dynamically every year. The online services market in this segment is growing particularly intensively.

Key changes

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2016 was a breakthrough year for the non-banking sector. At that time, the Act amending the Act on Financial Market Supervision entered into force , commonly known as the Anti-usury Act . It imposed on loan companies operating in Poland the obligation of a minimum limit of the amount of share capital, which prevented dishonest individuals from raising capital by granting loans without coverage to unaware consumers. The introduction of limiting non-interest consumer loan costs was also sanctioned, which effectively minimized illegal usury practices consisting in imposing unimaginably high interest rates on borrowers.

Online vs offline

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The main driving force of companies in the non-banking sector are primarily services offered online. After introducing statutory changes regarding the interest rate on short-term liabilities and installment loans, the online distribution channel has become even more popular among Polish consumers and, according to forecasts, it will systematically oust offline loan services from the market. The use of the latest telecommunications technologies gives loan companies a competitive advantage in the small short-term loans sector, in which speed and convenience of application are the most important.

Under the supervision

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According to the report ‘The sector of loan institutions in Poland’, the total value of loans in the first half of 2017 exceeded PLN 3.8 billion. The number of consumers using the services of loan companies also increased during this period and amounted to over 1.67 million people, which means an average increase of 7.1 percent. compared to other surveyed years.

Thanks to the changes in the provisions on the consumer credit act, an institution, very important from the point of view of both customers and the non-banking sector itself, was created, called the Register of Loan Companies (RFP) . It is under the control of the Polish Financial Supervision Authority, and reporting entities operating on the Polish market to the Registry is mandatory. The establishment of RFP gave non-bank customers a reliable and competent tool that allows them to check the reliability and competence of a particular lender. For loan companies, this is a great opportunity to build a favorable brand image and credibility in the eyes of customers.

For our good

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Lending companies operating on the Polish market place more and more emphasis on monitoring the credibility and creditworthiness of people applying for a consumer loan. A report from the lending sector says that only in the first half of 2017 over 76% were rejected. applications for short-term loans. From the perspective of a potential loan seeker, this percentage of negative decisions can be daunting, but on the other hand it is a kind of consumer protection against falling into a spiral of debt inscribed in the policy of responsible lending .

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