Q: Despite the global economic crisis, the Polish economy is faring relatively well and is expected to remain in positive growth. Is this due to some extent to the economic reform carried out over the past years?

A: Yes, it definitely is. Over the past decade or so we have managed to do a lot in the wider economy and in the banking sector. Today, despite the crisis, we have a stable banking sector and an effective and modern clearing system. We are gradually turning some sectors of the economy into e-economy. Prospects are quite optimistic.



Q: Does the clearing system really play such an important role in the economy?

A: The ability to conduct financial operations in a swift and secure manner is seen as an important guarantee of economic growth. The clearing system plays an all-important role. The absence of such a system in Poland in the early 1990s resulted in large sums of money being redirected from the banking sector by the infamous Art-B company. At that time, Poland did not have a clearing institution which would ensure a secure exchange of payment orders between banks. The Art-B scandal prompted the decision by the largest Polish banks, the central bank and the Polish Bank Association to establish a modern clearing system and set up KIR S.A.



Q: Does the existing clearing system guarantee a secure exchange of information?

A: First of all, it is no longer possible to redirect money out from the banking sector. The clearing cycle has been shortened considerably and Poland now has one of the most secure clearing systems. The system has never been disrupted, not even during the disastrous floods in south-western Poland in the late 1990s when two KIR S.A. offices were damaged. The clearing system has been consistently upgraded. Since the ELIXIR electronic interbank clearing system was put in place in 1994 KIR S.A. has handled over 6 billion transactions and not one of them has been questioned. In 2005 we launched the settlement finality mechanism as one of the first solutions of this kind in Europe. The mechanism greatly reduced liquidity risk.



Q: Having an effective clearing system, what can we do now to make the Polish economy and Polish businesses more competitive?

A: After we have built an efficient and secure clearing system, time has come to focus on the business sector, public administration and businesses operating on the e-commerce market. It is worth promoting non-cash transactions and effectively support electronic money circulation because e-economy delivers concrete savings and financial benefits. The cost involved in processing e-invoices is 80% lower than the cost of handling paper invoices, something which is of great importance for businesses. It follows from analyses made by the European Association of Corporate Treasurers that up to EUR243 billion annually could be saved in Europe if e-invoicing became widespread. Of course, in Poland the savings would be proportionally smaller but their amount would still be substantial.



Q: There has been talk about e-invoicing for a long time. But do Polish businesses want to use e-invoices?

A: Unfortunately, the use of e-invoices is not universal yet. But according to the latest survey conducted for KIR S.A. by the ARC Rynek i Opinia market research agency, 66% of Polish people who have an on-line bank account would like to receive their electricity, gas, TV and other bills in electronic form. Businesses are also very interested in this form of invoicing because they see it as an opportunity to cut costs and improve communication with their customers. This shows that we have made a big step forward and have laid the ground for the popularisation of this form of financial information exchange.



Q: KIR S.A. is able to stimulate the development of e-economy. Do you have any idea of how to reduce the circulation of paper money?

A: KIR S.A. has stimulated the development of e-economy ever since its establishment in the early 1990s. We have introduced very efficient clearing systems, ELIXIR and EuroELIXIR, and have been gradually launching non-settlement services. KIR S.A. was the first company in Poland and one of the first in Europe to offer electronic signature services. Polish banks started to use them as early as 1993. Last year KIR S.A., as the first company on the Polish market, launched the electronic bill presentment and payment (EBPP) service provided through on-line banking channels. The service has been launched under KIR’s own brand BILIX. Over 50% of Polish on-line banking clients already have access to this service.

The first invoice issuers have also started to use the service. We are negotiating or already preparing the launch of the service in more banks and companies providing various services, like electricity supply, telecommunications, satellite and cable television, and insurance. There is a good chance that the system will soon become popular and will contribute to reducing the circulation of paper money.



Q: Attempts to introduce such solutions in Poland have already been made before but without much success.

A: It is true but at that time few Polish people had Internet access and on-line banking only started to develop. At present the departure from bills and invoices in paper form is possible. Of great importance is also the fact that retail clients are interested in this form of billing. Surveys show that Polish people want the introduction of e-invoices. People are more aware these days that time is money and are looking for more convenient and quicker ways of payment. We have provided the tool which makes it possible for service providers to send e-invoices directly to their clients’ on-line banking systems. This makes a fundamental difference to the way we settle our payments.



Q: Has any change been noticeable in the approach of businesses to modern solutions?

A: The economic crisis has prompted businesses to seek ways to optimise costs. We have seen increased interest in the eArchiwum service, which provides a full range of functionalities associated with the archiving and management of paper and electronic documents. The system enables its users converting paper documents into electronic form and gives access to them to authorised persons in the form of an on-line application.



Q: E-economy cannot function without support from the state. E-invoicing will not prove useful if contact between businesses and public administration is not improved. But is this possible?

A: The introduction of the electronic interbank clearing system has shown that it is possible to change mentality quickly and at the same time implement modern systems. We are optimistic. An important moment in this respect will be this July when all businesses employing more than five people are to start using electronic signature when sending declarations to the Social Insurance Institutions (ZUS). This is an important change, which may contribute to improving contact between business and public administration. We also have great hopes for the ePUAP electronic platform for public administration services. We are taking an active part in this project. PayByNet, the first system in Poland providing on-line information that money has been transferred between accounts without the need for the two parties to have accounts in the same bank, will be used as part of ePUAP. Together with the BILIX service, this offers hope for an increase in non-cash transactions in Poland. I think our banks, businesses, public administration and society are increasingly prepared to take an active part in developing e-economy. And this bodes well for the future.