Bank Pekao Simplifying the Credit Process to Stimulate Credit Decisions

Bank Pekao is part of the PZU group – the largest financial group in Central and Eastern Europe. The bank has been present on the Warsaw Stock Exchange since 1998. The total assets of the bank amounted to PLN 203.32 billion at the end of 2019.

Bank Pekao has simplified the credit process and shortened credit decision time by introducing the ability to share account history from another bank online through open banking. The bank uses the open banking service in its cash loan, overdraft limit, and other credit card processes.

The Importance of Bank Pekao in Poland:

If a customer adds access to information about his account in another bank, the advisor will be able to analyze the data needed in the credit process without additional waiting for written documents. The open banking service shortens the time necessary for a credit decision and makes it possible to obtain a loan easily and quickly, according to Piotr Gołąb, director of the Individual Customer Credit Product Department at Bank Pekao.

Open banking is a new model on the payment services market implemented following the EU directive PSD2. PSD2 is a European regulation for electronic payment services. It tries to make payments more secure in Europe, promote innovation and help banking services adapt to new technologies. PSD2 rules and adapts two types of services already in existence when the first PSD was adopted in 2007:

• Payment Initiation Services (PIS) – the collection and storage of information from a customer’s different bank accounts in a single place;
• Account Information Services (AIS) – facilitates the use of online banking to make payments online.

Thanks to open banking, Pekao clients in the Pekao24 service and the PeoPay application have complete knowledge of their financial situation. They can check balances and the history of their accounts, including credit cards held at other banks, and order transfers, as stated.