Then, we are also planning to open 400 agencies and are considering setting up 300 consumer sales outlets. Alior Bank already employs nearly 1,400 people with average work experience in the banking sector of over eight years. The combined experience of our staff is what enabled us to create stable and safe foundations and procedures for Alior Bank. We are a bank which respects the rights of its shareholders and together with them has worked out a very effective decision-making system. But the three-person Management Board runs the bank independently, here in Poland,” says Wojciech Sobieraj, President of Alior Bank.


“Polish Market”: Looking at the turbulence on financial markets, one may doubt whether it is the right moment to start banking operations.



Niels Lundorff, Vice-President for Risk and Finance: The Polish banking sector has grown a lot in the last few years. The professionalism of the Polish banking management has clearly had an effect on the development of systems, procedures, tools and mechanisms and also leadership models. This has opened up an opportunity for an additional sale of banking products. With the development of lending products, banks have started to actively approach the customer. The same has been the case with a number of other investment and transaction products – they are sold and developed in a much more professional way now. This has had a significant impact on the development of small companies in Poland and significantly helped the development of the Polish economy in general.

At the same time we have seen almost an aversion against the high-risk products so popular in other countries. As a result, these instruments are virtually non-existent in the Polish banking books and Polish banks have not suffered the significant losses which we have seen in a number of other European countries. This does not mean there were no attempts to sell these instruments to Polish banks. But little was actually sold. Additionally, Polish banks operate under Polish law, which is very restrictive in many areas, and are subject to financial supervision in Poland. Many experts have always regarded the Polish financial supervision system as exceptionally conservative. As a result, the development of the Polish banking sector has been very healthy.

Cezary Smorszczewski, Vice-President for Corporate Clients and Operations: Niels has assessed the situation of the banking sector and I wish to add that this crisis has changed nothing within our organisation. The rules on which we have based the organisation have not changed. Our employees are ready to act. We will be consistently expanding our chain and preparing new products. If the external environment has changed we have to be flexible. We have adjusted our product line to meet the current expectations of clients. We understand that clients are now interested not only in profit but also transaction security. Alior Bank has adopted several rules in this respect. Firstly, the deposit-to-loan ratio will be 1.5:1 at our bank – so we will always be on the safe side. Secondly, we will always have over PLN500 million in cash and liquid securities - Treasury bonds. Thirdly, the bank will not be involved in any speculative operations. Fourthly, in our lending activity we will be relatively selective, which means we will be aiming at reliable borrowers and moderate margins. In building Alior Bank, our goal since the very beginning has been to make it a very safe bank. Therefore, we do not need to change anything now.



NL: Obviously, in a situation where there is nervousness on the market, it is important for the clients who are bringing deposits to our bank to know that their savings are safe. We have the responsibility to ensure that the clients whom we lend money are reliable and credible. In this situation, the approach to credit risk has to be restrictive.



PM: We understand that in business, technical and organisational terms everything is ready. But these days the psychological factor is more important than ever before. An important factor providing a sense of security to the client is confidence resulting from a bank’s experience. Can a newcomer to the market count on this confidence?



Robert Midura, Director for Operations: We can count on that. I think clients will notice from the start that we are a modern and safe bank in every respect. The bank’s experience is based on the experience its employees and managerial staff have gained on the financial market over many years. The organisational and technological solutions adopted by the bank, apart from being modern, have been carefully selected to make a coherent and safe whole. Additionally, they have been checked by means of multi-stage and multi-level tests on systems, processes and emergency procedures. The bank participates in all institutions of the Polish payment system and works with many correspondent banks in international operations. It has also signed outsourcing contracts with leading companies in their respective sectors, companies which have long experience in working with banks. Alior Bank’s clients can feel secure.



Henryk Baniowski, Director for IT: Indeed, the psychological aspect and a sense that assets deposited in a bank are safe is the most important thing because banks are institutions of public trust. This is particularly important in the context of the current situation on financial markets. Alior Bank is being built by teams of people and well-established partner companies with wide experience in the financial sector. Alior Bank treats security matters very seriously. The solutions the bank has used to develop its infrastructure and sophisticated tools designed to ensure the security of its ICT systems guarantee the highest quality. The bank has two computational centres able to work independently. All customer data are protected against loss by multiple layers of security. They are also protected against unauthorised access from the outside and from the bank’s internal network. At the same time, we want to make sure that the client has easy access to the bank and to his or her resources in the bank. And we want to provide this access via all possible channels, like bank branches, the Internet, call centre, self-service kiosks, ATMs and soon smartphones. We are building a customer-friendly, comfortable and secure place where the client can satisfy any kind of needs associated with banking services.
CS: And what about a football team which is to play a debut match in the premier division but is composed of excellent players. Would you call them newcomers? And then would you be surprised if they ranked high in the league table?

Let us look at our advantages: a staff of almost 1,400 people with an average age below 34 and the average work experience in banking of over eight years, senior managerial staff with over 10 years’ experience on bank management boards, and well-qualified junior managers. Can these people be called novices in this sector?

The second thing which ensures security is the scope of our activity – only traditional banking products. Of course, we will be innovative. But the innovation will be about customer service rather than “exotic” and incomprehensible products. Alior Bank will not be selling products. It will be serving the customer. What is more, we will never offer services which we would not want to use ourselves.



PM: So you will not be relying on the financial engineering for which banks and brokerage houses have been strongly criticised recently?



NL: Absolutely not. The question is: Are we to invest money or are we to help the clients. Alior Bank has rejected the very doubtful assumptions of financial engineering and has based its strategy on very classic fundamentals in banking.

We do not analyse if we could leverage if the client invests in a sophisticated product. We are not doing that and we are not helping the client doing that either. Why we say no to obscure products? Because simplicity and safety is our rule. Only if it is safe we can play fair with the client. And this is what we are focusing on.



CS: We always take the client’s perspective into account – we ask how the client could benefit? And we ask this question for every new idea.



Katarzyna Sułkowska, Director for Credit Risk: This strategy applies not only to deposit products. When making loans, we will want not only to meet the customer’s current financial needs but also establish good cooperation with the client, a cooperation which would be safe to both sides. Professional credit risk analysis, supported by modern tools and based on a wide range of information obtained from the clients and available sources, makes this possible. Reliable information provided to clients is our goal and also a way to give them a sense of transaction security. Our transparent contracts and regulations clearly define the rights and obligations of both parties. We tell clients about potential risks involved in individual transactions and give them an opportunity to reduce the risks through insurance.



PM: But although you are well prepared, Alior Bank may have a difficult start. Most experts expect a major economic slowdown, despite the fact that the foundations of the Polish economy are generally sound. But some say it is a good moment for “expert hunters.”



CS: Yes, indeed. It is not a great feat to be a good manager at a time of prosperity. True managerial skills are needed at a time of crisis. But let us return to the condition of the Polish economy. Firstly, the Polish GDP will definitely be growing. Whether the growth rate will be at 3, 4 or 5%, it will still be higher than elsewhere in Europe. Secondly, the real interest rate in Poland is higher than the real interest rate in other European countries. And investment always comes where the real interest rate is higher. Thirdly, Alior Bank has neither toxic assets nor problems resulting from transactions already concluded. For a bank with the 10th largest equity capital in Poland and very good liquidity this means it has a strong position.



NL: It is clear that EU funds for the development of Polish infrastructure not only provide leverage for the economy but also indirectly generate demand for loans. Many municipalities are very interested in seeing this development. And the government is very interested in ensuring that the funds the EU is willing to give to Poland will be used. The lucky thing for the Polish economy is that the funds can only be used if the government takes action, spends money and supports companies to spend money. In the next couple of months we will certainly see more initiatives from the government and local governments – there will be meetings with business, the financial sector and advisers to pinpoint where problems could come with spending the money and how to make sure that the money is actually invested.

The EU funds will be a very good suspension against the bumps on the financial road which we are seeing in the whole economy right now. Additionally, Poland now has a very high growth rate at 5-5.5%, which is a lot. The economy may slow down a little but we do not see a recession coming.

I spent seven years in Poland from 1999 to 2006. To prove that Alior Bank will have a strong position on the Polish banking market, I can tell you that many of my friends from that time are calling me at the moment and asking when they can start bringing their accounts to the bank.



Artur Maliszewski, Director for Corporate Banking Development: We have prepared two very attractive product lines for people running small and medium-sized businesses. I think companies will appreciate the product where we offer a large number of electronic transfers without additional charges and customer-tailored accounts with a customised list of fees and commissions. As an alternative, we will offer them an opportunity to pay a monthly lump fee for all operations on the account. All groups of customers will be offered access to currency exchange products, hedging against currency risk and an opportunity to deposit available means through the Internet with very advantageous price conditions subject to negotiation. The clients who choose Alior Bank as their main bank will not be required to pay any commission on currency exchange. We will also offer a complete line of loan products and customers will be served by very experienced bank employees so none of them should feel disappointed.



Michał Hucał, Director for Retail Banking Development: When developing our products for retail clients we were looking for solutions which would be innovative but at the same time free of catches. Our competitive edge includes personal accounts and savings products. Some of them are quite new on the Polish market, others combine existing features but in a new way. In the first months since the start of our operations we will also launch a unique credit card line. The products will be intended for selected customer segments, like for example people who travel a lot and drivers. We will also offer credit lines, loans and mortgage products. We have tried to avoid the solutions which clients call catches. Wherever it has been impossible to remove a catch, or a solution only seems to contain a catch, clients will be fully and honestly informed about it.



Alior Bank is a universal bank providing services in all banking segments within its two business sections: retail and corporate. The bank offers safe and profitable savings products combined with a cautious loan policy. It offers all its clients products and services which so far have only been available to a selected group of banking clients in Poland. The deposit, credit and investment product lines provided by the bank - including deposits, structured products and six types of funds - are innovative and attractive in terms of price. They are available at the bank’s branches and via the Internet and phone. Apart from accounts, deposits and payment cards, Alior Bank also offers its clients a full range of credit products. Its services cover domestic and international commercial transactions and payments. Apart from product accessibility and functionality, Alior Bank also has an efficient customer service system which ensures high service quality at the bank’s branches and fast decision making.



Alior Bank is a Polish company subject to supervision by the Polish Financial Supervision Authority. The deposits of Alior Bank’s clients are guaranteed by the Bank Guarantee Fund. The bank’s equity capital amounts to PLN1.5 billion. The bank is managed by a three-person Management Board composed of: President Wojciech Sobieraj and two Vice-Presidents, Niels Lundorff and Cezary Smorszczewski. Alior Bank’s Supervisory Board is composed of: President Helene Zaleski, Prof. Małgorzata Iwanicz-Drozdowska, Prof. Marek Michalski, Krzysztof Rybiński, PhD, and Michał Panowicz.



The bank employs over 1,300 high-class specialists, including 870 customer advisers. The average work experience of Alior Bank’s employees, who came to the bank from 33 Polish and foreign financial institutions, is over eight years. Their average age is almost 34.