MONETA’s aging on-premise infrastructure was impeding the bank from delivering the digital services its clients craved. By moving to crypto exchange poland the cloud, MONETA can now focus more on innovation while reducing costs.
Opening an account is refreshingly straightforward, requiring just a name, email address and desired password. Transparency regarding trading costs is notably missing however, an area in which Moneta Markets needs to improve.
1. Identifying the Need
The increasing popularity of cryptocurrencies is not without its challenges. Despite the fact that these digital assets are gaining in value, they also carry some serious risks and need to be handled with care by investors.
The main issue is that the cryptocurrency market is very volatile, which means that prices can change dramatically in just a few hours. This makes it challenging for many people to invest in cryptocurrencies. Furthermore, security concerns are another important issue in the crypto space. There have been several high-profile security breaches in the industry, and some of Poland’s largest crypto exchanges have even had to shut down because of this.
This is a big problem because it leads to loss of investor funds and distrust of the entire cryptocurrency system. Additionally, it can cause problems for the financial institutions that provide services to cryptocurrency trading platforms. As a result, they may stop providing services to these entities, which can lead to further instability in the market.
A solution to this problem could be to introduce a new set of rules and regulations that will help to reduce the volatility of the cryptocurrency market. The new rules should also improve security and increase the transparency of the transaction process. These measures would help to protect investors and ensure that the crypto markets are as safe as possible.
The introduction of these new rules will be a good first step, but it is essential that the government and private sector continue to work together to make the crypto industry as secure as possible. In addition to this, the public needs to be educated about the risks associated with investing in cryptocurrencies.
In order to obtain a license to conduct cryptocurrency activities in Poland, a company must meet a number of requirements. Among other things, it must register its physical address in Poland and submit copies of documents for its owners and directors. Additionally, it must deposit a certain amount of authorized capital. Finally, it must develop clear rules for risk management and AML/KYC policies. The company must also prepare and submit reports on its activities to the appropriate authorities.
2. Developing a Strategy
In 1828, Prince Franciszek Ksawery Drucki-Lubecki founded the Bank of Poland in Warsaw. The institution was originally entitled to issuance of the Polish currency as well as control over credit rates. In addition to the issuance of the Polish currency, it also had exclusive rights to buy and sell foreign currencies. This enabled the Bank to earn profits from the exchange rate differences.
The Bank of Poland was eventually replaced by the National Bank of Poland in 1926. The National Bank of Poland is the country’s central bank. It was the first in Europe to introduce a system of national bank notes. These notes replaced the traditional coinage as a form of money. The paper notes were designed to be more convenient and less expensive to manufacture than coins. In addition, the national bank also provided a more stable source of money in times of economic crisis.
Despite these significant developments, the Polish banking system remains vulnerable to shocks. The capital adequacy of Polish banks has declined from its highs in recent years due to losses from poor loan underwriting and a series of mergers that did not address viability issues.
Furthermore, the banking system has a high degree of interconnectedness. Analysis shows that a destabilization in one bank could cause distress to the affiliated cooperative banks. As a result, the National Bank of Poland has begun to apply Solvency II-based group supervision.
In addition, the national bank has started to strengthen the risk-based supervisory framework, including by introducing more rigorous capital surcharges and by developing more robust stress testing. This has been accompanied by an increase in the number of staff assigned to supervisory functions.
MONETA needed a flexible, cost-effective solution that would allow them to meet their strategic ambitions and support continued growth. They needed to develop an integrated platform that would enable them to meet the demands of the market with greater speed and agility. Ultimately, MONETA deployed a robust and secure cloud-based infrastructure that has enabled them to deliver new capabilities faster and improve customer service. This flexibility has also helped them reduce costs by automating and simplifying processes.
3. Developing a Solution
The Narodowy Bank Polski (Polish: Narodowy Bank Polski; abbreviated NBP) is the central bank of Poland. Its main responsibilities are to issue Poland’s currency, the zloty, and regulate the country’s banking system. NBP also represents Poland in international financial and monetary organizations.
Poland’s economy is well-diversified with a solid domestic demand. The government has made considerable progress on structural reforms and is implementing a new tax policy. However, the country faces challenges from global factors such as heightened trade protectionism, weakening economic growth in emerging economies and sluggish investment and consumption. NPLs are high, while bank profitability is low.
A rise in global risks could dampen domestic financial conditions, resulting in zloty depreciation and higher interest rates. This would hurt consumer spending and investment, as well as increase banks’ funding costs. Moreover, increased NPLs and rating downgrades could impair bank capitalization and profitability. Lastly, a surge in Polish sovereign bond yields would lead to valuation losses for banks’ largely domestic government-related portfolios.
MONETA needed to change its IT infrastructure to keep up with client demands and provide modern digital services. Its aging, on-premises systems were costing it more than it was saving in maintenance fees. This was hindering the company’s ability to refocus investments on innovation and positioning itself as a leader in the Czech Republic banking industry.
In order to meet its goals, MONETA decided to implement CCH Tagetik, which offers a unified platform that automates IFRS conversion adjustments for monthly financial reporting and consolidation. This solution allowed the company to improve its control environment and strengthen data quality. In addition, it was able to streamline its closing process and reduce the number of manual activities by at least one business day.
The PFSA’s changes to Solvency II appear well-embedded and without significant exemptions or transitional arrangements. Nonetheless, the authority needs to strengthen its internal coordination and implementation of comprehensive group supervision, including recovery planning. Furthermore, it should work with foreign-owned insurers to ensure that they comply with PFSA requirements.
4. Implementing the Solution
In Poland, MONETA’s aging, on-premises infrastructure impeded the bank’s ability to provide clients with the digital services they desired. And the costs of maintaining the legacy infrastructure were preventing the bank from reallocating funds to innovation.
MONETA turned to Accenture to create a new flexible, secure IT architecture that is enabling the bank to meet the needs of its rapidly changing clients. The system will support the bank’s plans to run up to 50 percent of its applications in the cloud, reducing the data center footprint and allowing it to more quickly respond to market changes and client demand.
In the area of banking supervision, the responsibilities, objectives, and powers of the four agencies in charge are clearly set out by law.1 The PFSA has exclusive competence for granting and withdrawing licenses of Polish-incorporated banks as well as branches of foreign banks established in Poland. Its licensing regime is largely harmonized and integrated with the EU’s regime. The PFSA is also in a position to share information effectively with home supervisors over Poland-based subsidiaries of foreign banks through a variety of MoUs.
The banking sector in Poland is well capitalized. The capital market is large relative to other CEE countries, and the stock exchange has a wide range of securities. However, insurance markets are small compared to the size of the country’s economy and penetration rates remain low. Bond markets are growing, but liquidity is limited compared to the size of the sovereign debt market.
Eloise Schlafly loves her clients, and she delivers the kind of service that only a completely independent, 100% Partner-owned company like Moneta can. She serves as her clients’ Family CFO, a trusted resource for all their financial matters—from tax planning conversations to estate strategies and educational investment implications. Eloise is proud to work at a company where she can be so transparent with her clients and help them achieve their goals. She is committed to helping her clients live their best financial lives and enjoy the freedom that a successful retirement brings. Her favorite part of the job is the relationships she builds with her clients.
