Banks in CEE on fast track of digitization
The results of analyzes carried out by the S&P Global Ratings team show that banks operating in Central and Eastern Europe are very efficient in adapting their business models to the digital reality, and some of them, in terms of the pace of digitization, already exceed their European competitors, according to a report by the Warsaw Business Journal.
The outbreak of the COVID-19 pandemic significantly accelerated the process of transition from traditional banking to online channels, and in many cases directly to mobile banking, which clearly shows that spending on technology development in recent years has brought the expected results.
Based on the TRIP analysis carried out by S&P Global Ratings, which covers four risk areas (technology, regulations, threats to the banking sector from competition and preferences) and compares banking markets in individual countries around the world, the risk of disruptions in each of the above-mentioned areas affecting on the situation of retail banking in a given country.
The countries of the CEE region covered by the National Banking Sector Risk Assessment (BICRA) conducted by the S&P Global Ratings team were also subject to detailed analyzes – these are Poland, the Czech Republic, Hungary, and Slovenia.
"We perceive the banking sector in Poland and the Czech Republic as immune to the risk of technological disruptions. By contrast, other markets in the region, in particular the Hungarian sector, have many aspects that still need to be improved. Regulatory institutions operating in Hungary urge the wider banking sector to accelerate the digitization processes and encourage fintechs to enter the local market, but Hungarian customers remain largely used to traditional banking, therefore the pressure on banks to provide innovative solutions is relatively moderate," the report reads.
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