Commercial Banks in Poland in the Face of Changes In Market f Payment Services

Abstract

Commercial banks are facing one of the biggest challenges of doing business in the area of retail money settlements. Due to changes in the payments market these institutions must redefine their place in the process of implementation of payment services on a national and international level. There is no doubt that on the one hand banks intentionally provide payment services based on activities performed by the third entities through outsourcing, on the other – they are facing increasing competition from non-bank payment institutions. The purpose of this article is to assess the activities of commercial banks in Poland in the light of changing market for payment services. It attempts to verify the hypothesis that the effectiveness of these activities requires the involvement of the entire banking sector. The article is divided into several parts. The first one refers to the role of commercial banks in retail money settlements. It includes the significance of this area in the activities of banks, among others in the context of their revenues. The second part is focused on non-bank payment services market and the changes which show its development. The third part includes a brief analysis of real threats to banks in the execution of payment and settlement functions. In the fourth part, a reference is made to examples of activities of commercial banks in Poland, which are a response to changes in payment intermediation and payment services market. The considerations contained in the article lead to the conclusion that it may be difficult for banks operating in Poland to preserve a key role in retail payment services in the context of their activities. In the light of globalization processes, the effectiveness of actions requires the commitment and cooperation of the banking sector, not only nationally, but also on the international scale.