The pandemic has brought technology even more firmly into our life and revolutionized many of its aspects. Progressive digitization has changed the way we do everyday things. This also translates into what customers expect from financial institutions and how they use their services. Therefore, organizations, in order to maintain their position, should implement artificial intelligence (AI), which will allow to increase the quality of service and personalize product offers. As indicated by the respondents of a survey conducted by Asseco and SME Banking Club, these are the most important goals of customer data analysis.

The report "Artificial Intelligence in Financial Institutions. Innovative Platforms for Analyzing SME Customer Data" summarizes the current state of readiness of the European market to implement technologies based on artificial intelligence in the financial sector. It looks at the challenges faced by institutions, i.e. banks or factoring companies - better adjustment of the product offer for small and mid-sized enterprises, greater support for customers and optimization of the costs of their service. The diversity of issues depending on the institution shows how different the viewpoints and approaches of financial organizations to the directions of development can be.

"As the results of our study have shown, financial institutions are focusing on client-centricity. The key aspect is learning about the needs of their customers and striving to personalize actions taken. Support in this area is data analysis, the results of which allow for significant acceleration of customer service, better selection of offers or improvement of the financing process. The answer to these needs is artificial intelligence (AI), which is able to process huge amounts of data and make analysis on their basis. However, at this moment only 32% of respondents declare implementation of solutions based on AI. A significant portion use it in selected processes rather than across the organization. The good news is that 65% of respondents plan to implement AI-based solutions within the next two years," said Olena Gryniuk, CEE Regional Director, SME Banking Club.

Personalizing products and improving service are priorities for data analytics

90% of financial institutions are aware of the importance of customer lifecycle analysis. In addition, survey respondents indicate a trend related to knowing their customer, their preferences, their needs and offering them personalized products and services. On the other hand, the main objective resulting from the data analysis is to improve the quality of service, ensuring a better customer experience for SMEs.

"When analyzing customer data, we would like to learn as much as possible about their need for support by a financial institution - here and now. However, everyone is different and has different needs as well: having business cards, increasing their bank account limit, etc. How, then, are financial institutions supposed to know what to offer consumers at the moment? It is thanks to Customer Data Platform and thorough analysis that we can determine their needs at a specific time. The results of the survey show that depending on the industry, the emphasis of the SME customer analysis is placed on a slightly different aspect. For banks, better service and personalized offers are the most important, for factoring companies - customer retention, for other institutions - meeting the growing demands of customers. All these objectives have one common denominator - in order to achieve them, we need to know what our clients need at a given moment," emphasizes Jarosław Bryl, Director of the Business Intelligence Division at Asseco Poland.

Artificial intelligence becomes a "must have"

Currently, artificial intelligence algorithms are used in only 1/3 of the surveyed organizations. The most developed in this regard is the area of sales, marketing and customer service. Nevertheless, machine learning is gaining popularity, over 60% of the surveyed institutions plan to develop in this area.

"Nowadays, the implementation of artificial intelligence has become a certain "must have", without which it is hard to remain competitive on the market. Increasingly more companies in the financial sector are planning and deciding to use machine learning models. However, vague regulations are still a huge obstacle for many areas where full transparency is required. An additional barrier may be the fact that financial institutions often do not have teams in their organization that are specialized in artificial intelligence and could take on such a challenge," adds Jarosław Bryl, Director of Business Intelligence Division, Asseco Poland.

The survey respondents representing the banking industry pointed to customer needs as an issue having the greatest potential for the implementation of artificial intelligence. Factoring companies, on the other hand, point to the process of "productizing" the customer by offering new forms of cooperation or services, but starting from the customer's needs rather than the direct sale of a product.

"Hyper-automation is a concept that has been on the list of major technology trends for the past two years. It means using, among other things, artificial intelligence to automate tasks and processes performed by employees. However, not all of them are suitable for this procedure. Therefore, when deciding to do it in our organization, we should take into account several elements. The most important issue is access to good quality data - let's choose the area for which we are able to obtain such data. Next, we need to define the problem well and define KPIs that will help us evaluate the effectiveness of the implemented solution. Companies that have centralized platforms for gathering information on customers and products, usually have already completed this first and most important aspect - access to good quality data," points out Patrycja Sobczyk, Product Owner, Asseco Poland.

The key challenges in organizations related to the implementation of artificial intelligence relate to integration, both with the solutions used and the processes applied. Almost half of the respondents indicated this aspect as the biggest or very big challenge they face. This is where proven providers offering analytical systems come to the rescue. Based on data and observation of customers' online activities they determine their profile and recommend the best offer in real time.

Full results of the Asseco report "Artificial Intelligence in Financial Institutions. Innovative platforms for analyzing SME customer data" available via: https://aci.asseco.com/raport/

About the report

The report by Asseco and SME Banking Club entitled Artificial Intelligence in Financial Institutions. Innovative platforms for analyzing SME customer data, summarizes the current state of readiness of the European market to implement artificial intelligence technologies in financial institutions. It is based on a survey in which we asked representatives of banks, factoring and leasing companies serving small and mid-sized enterprises across Europe. We asked them, among other things, about the biggest challenge of 2021, what the purpose of customer lifecycle analytics is and whether they are already using solutions based on artificial intelligence and what plans they have for their development. The collected data published in this report indicates the direction and pace of development in this area for the coming years.

About Asseco Poland

Asseco Poland is the largest Polish IT company listed on the Warsaw Stock Exchange (WSE) and the sixth largest European software vendor. It leads the international Asseco Group that operates in 60 countries and employs over 27 thousand people. Creating IT solutions for banks is one of the key business areas of Asseco that offers, among others, central banking systems as well as omnichannel and mobile solutions addressing the latest trends in global banking. Owing to the acquired experience and competence, Asseco has implemented its IT solutions (core banking engine) in over 800 banks.

About SME Banking Club

SME Banking Club was founded by a team of former SME bankers in 2010 as a professional network to exchange information and experience in the micro, small and mid-sized enterprise segments. SME Banking Club organizes regional SME banking conferences every year, which bring together financial institutions and technology companies to share knowledge, stimulate innovation and promote SME growth in the region. In addition, it provides its members with access to detailed market analysis reports and annual studies. The main SME Banking Club activities are focused in Central and Eastern Europe.

On September 1, Asseco launched an image and product campaign on TV targeting new and existing customers and employees. Asseco is a leader in digitization in Poland* and wants to reach a wide audience with this message. To this end, it began, among other things, broadcasting an advertising spot portraying it as a technology company open to innovation.

Since the beginning of September, we have been running an advertising campaign on TV. This is our absolute debut with advertising in this communication channel. The campaign focuses on two of our rapidly growing products – the SimplySign electronic signature and the ERP solutions, said Artur Wiza, Vice President of Asseco Poland.

The commercial is aired mainly in prime time on channels from the Polsat, TVN and TVP groups. In addition, Asseco has become a sponsor of sports news, displayed after the main editions of news services.

Asseco is a leader in digitization in Poland and the largest IT company in the Central and Eastern European region. For 30 years it has been developing technologically advanced software for companies in key economic sectors. The company is present in 60 countries around the world and employs about 29,000 people. It has been growing organically as well as through acquisitions, of which it has made more than 100 since 2004. Asseco companies are listed on the Warsaw Stock Exchange (WSE), NASDAQ and the Tel Aviv Stock Exchange.

*according to the Computerworld TOP200 report for 2020.

In the first half of 2021, Asseco generated sales revenues of PLN 6.8 billion, which marked an increase by 18% year on year. The sales of proprietary IT products and services amounted to PLN 5.3 billion, representing 78% of total revenues. The consolidated operating profit increased by 21% and amounted to PLN 672 million. Net profit attributable to shareholders of the parent company amounted to PLN 242 million, increasing by 37%. The Group strengthened in all segments and sectors of its operations, recording double-digit increases in its results.

After H1 2021, non-IFRS operating profit amounted to PLN 826 million, up by 22%, and non-IFRS net profit, after a 24% increase, reached PLN 249 million.

The Asseco Group consistently pursued its development strategy while responding to the increasing market demand for digitization of business processes of companies and institutions. This enabled the Group to achieve double-digit increases in revenues and profits across all of its business segments and sectors.

In the Formula Systems segment, during the first 6 months of 2021, sales increased by 20% to PLN 4.4 billion, while operating profit improved by 18% to PLN 339 million. Sales revenues of the Asseco International segment reached PLN 1.7 billion, reflecting a 12% increase, while its operating profit increased by 15% to PLN 199 million. The Asseco Poland segment generated PLN 751 million in sales revenues or 17% more than in the corresponding period last year; whereas, its operating profit improved by 45% to PLN 137 million. Foreign markets, represented by the Formula Systems and Asseco International segments, together accounted for 89% of the Group's revenues.

In the first half of 2021, the Group increased its sales to the sectors of general business and public institutions by 22%; whereas, revenues from the banking and finance sector increased by 10%. Asseco's revenues are well diversified by sectors. In the reported period, general business accounted for 41% of sales, banking and finance for 34%, and public institutions for 25%.

In Q2 2021 alone, the Group recorded sales revenues of PLN 3.5 billion, which marked an increase of 21%. Operating profit increased by 15% and amounted to PLN 349 million, and net profit attributable to shareholders of the parent company amounted to PLN 139 million.

Asseco's consolidated order backlog for 2021 in the areas of proprietary software and services is currently worth over PLN 10.1 billion and is 16% higher than in the same period last year.

We had a very good half-year. Double-digit increases in results in all segments and sectors of our operations, while maintaining profitability, are a source of great satisfaction. Geographical, sector and product diversification of our business brings measurable effects. We are growing organically as well as through acquisitions. During the first 6 months of 2021, 11 new companies joined the Group, strengthening our position on foreign markets. As digitization of business processes has become the answer to many challenges faced by companies and institutions today, we observe increased demand for our solutions and services, which is confirmed by double-digit growth of the Asseco's order backlog for 2021 in each of our operating segments. This allows us to look at the second half of the year with optimism – said Karolina Rzońca-Bajorek, Vice President of the Management Board of Asseco Poland.

* Non-IFRS figures including adjustments for: the cost of amortization of intangible assets recognized under the combination settlement (PPA), the costs of share-based payment transactions with employees (SBP), the costs and financial revenues resulting from the transactions of purchase and sales of companies (M&A) and tax effects associated with them).

The objective of the cooperation between Asseco Poland and BPS Bank is to implement a new central system, e-banking and a mobile application. Some of the Bank's IT systems will be moved to the cloud, while the Bank's Clients will gain modern solutions for everyday operation.

The signed agreement provides for the implementation of a new central banking system (including a main transaction system and a data warehouse) and its operation using Asseco's data processing centres. The changes will also include a new-generation Internet banking system for retail and corporate clients and a mobile application.

The changes we are making at BPS Bank are aimed not only at implementing modern technologies for retail and business customers, but also at providing increasingly better services to affiliated cooperative banks. Due to the challenging economic environment, we must also look for cost optimizations - says Artur Adamczyk, President of the Management Board, Bank BPS. Therefore, we have decided to implement a new core system. The selected vendor, Asseco Poland, knows the BPS Association and its business needs very well; it has been operating in the cooperative banking sector for years, providing services to a considerable part of our Association. Therefore, we will be able to take advantage of a number of ready-to-use solutions offered by Asseco. This will shorten the time of planned implementation and reduce its costs. The new central system will allow us to enter a new stage of technological development and will improve the operations of the entire Bank. At the same time, I believe that it will be a stimulus for all the Cooperative Banks in our Association to accelerate the digitization processes.

We are extremely pleased that Bank Polskiej Spółdzielczości (BPS), on the occasion of our 30th anniversary, has chosen Asseco Poland to provide its key IT solutions for the coming years. This confirms that our investments in functionality, technology, security and the subscription model of software delivery have met the expectations of our demanding client. The agreement signed means the extension of our cooperation with Bank Polskiej Spółdzielczości (BPS) for another 10 years, which is so important for us, and thereby reinforces the Asseco's position in our key sector of cooperative banks, says Zbigniew Pomianek, Vice President of the Management Board of Asseco Poland.  

The agreement was signed for a period of 10 years with an option to extend.

In accordance with Rule 1.2 of the Code of Best Practice for WSE Listed Companies 2021 ("DPSN 2021"):

"Companies make available their financial results compiled in periodic reports as soon as possible after the end of each reporting period; should that not be feasible for substantial reasons, companies publish at least preliminary financial estimates as soon as possible."

and with reference to DPSN 2021 Rule 1.1:

"Companies maintain efficient communications with capital market participants and provide fair information about matters that concern them. For that purpose, companies use diverse tools and forms of communication, including in particular the corporate website where they publish all information relevant for investors."

the application of which the Company declared in its Regulatory Filing EBI No. 1/2021 of July 30, 2021 "Information on the Company's compliance with the principles set forth in the Code of Best Practice for WSE Listed Companies 2021", the Company informs that the estimated consolidated net profit attributable to shareholders of the Parent Company of the Asseco Poland Group for the first half of 2021 amounts to PLN 240.6 million, of which PLN 138.2 million is represented by the net profit for the second quarter of 2021 alone.

At the same time, the Company stipulates that the given value is an estimate and may still be subject to change.

The consolidated report of the Asseco Poland Group for the first half of 2021 will be subject to a review by certified auditors, which might result in a revision of the achieved financial results. The Company will disclose the final value of net profit in the consolidated report for the first half of 2021 which will be published on August 25, 2021.

In the opinion of the Company, the information on the amount of the estimated net result for the first half of 2021 does not constitute confidential information within the meaning of Article 7 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of April 16, 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (MAR).

Asseco has maintained its strong position in the "ITWiz Best100" ranking of the largest IT companies in Poland. The company generated record-high revenues in excess of PLN 12 billion in 2020, making it the largest capital group included in the list. In addition, for another consecutive year, it took the first place in the categories of companies with the highest sales to the public administration and uniformed services sector, large companies, as well as maintenance and integration services.

­We aim to maintain our leading position in the ­sectors of strategic importance to Asseco: banking, insurance, power industry, telecommunications, healthcare, and public administration. We continue to focus on further development of ­our proprietary products and services. Apart from sector solutions, we will also reinforce our position in ERP systems, payments, and ­trust services. We have been also investing in the development of cloud products and cyber security ­services. We will ­also continue to grow ­through acquisitions and strengthen our competence in individual sectors, said Adam Góral, President of Asseco Poland.