Under new legislation which came into force in November 2017, ID Finance companies in Poland were required to obtain a permit from the local financial market regulator KNF (Komisja Nadzoru Finansowego).
The company filed an application for a license in January 2018, satisfying the requirements specified in the new regulatory act for the filing of such statements. The process of reviewing and approving the application took considerable time because KNF needed to process over 390 applications from active players in the fintech sector.
Since the new legislation came into force, not a single new company has emerged in the lending segment of the fintech industry. The era of chaotic growth in the number of companies, along with a low quality of services provided to consumers, is now over. Licensing the activities of fintech companies in Poland has taken a logical step forward on the path to development of the industry.
“The status of the officially supervised company will allow ID Finance to strengthen the trust of customers, business partners and investors. Supervision by the mega-regulator helps to build long-term mutually beneficial cooperation,’ comments Boris Batine, co-founder and CEO at ID Finance. “Open bilateral dialogue between the KNF and the fintech industry will make a positive contribution to the protection of financial services users’ rights and will also accommodate the interests of players developing the financial and economic ecosystem of the country. Progressive regulation will ultimately result in market growth, higher investment appeal and an influx of highly qualified professionals into the industry.”