DM BOŚ: Successes of the brokerage house and the Polish market

Three decades are proof that the Brokerage House of the Environmental Protection Bank was built on solid foundations. Since the beginning, we have relied on universal values ​​- business honesty, responsibility and close contact with clients, their trust and satisfaction. For 30 years, the business environment, technology, customer expectations have changed and the product offer and the tools and transaction systems offered.

From the beginning of our activity, we focused on modernity and innovation. As the first in Poland and others in Europe, we introduced the opportunity to place online orders as early as 1996, when hardly anyone knew what the Internet was. The strength of the brokerage house from the very beginning were individual customers and they thought about them, we introduced new products and solutions. At the beginning of the activity, loans for the purchase of shares, offered together with our bank, were very popular. It was a period of privatization and large reduction of submitted entries.

Later, the leverage element was provided by the introduced timely contracts – A dream product for our active customers. For many years we have been the leader of this market segment.

When the fashion on Forex and CFD contracts came, as the first bank brokerage house, we introduced the possibility of trading these instruments.

It is also worth mentioning that we were the first to provide access to foreign markets with a wide range of investors. Currently, ETFs dominate there, which are in the portfolios of over half of the investors who have opened the bill in recent years.

Recent years have also been a boom for IKE and IKZE bills. From the very beginning, when the possibility of creating pension accounts was created, we believed in the potential of this market. Currently, as many as two -thirds of bills opened with us are the pension.

We developed regardless of the economic situation. Thanks to the strong market position, wide offer and credibility built over the years, we were able to turn even more difficult moments into success, participating, among others in the consolidation of brokerage services.

Today we live in a completely different world, which is most noticeable in the area of ​​technology. When we started, hardly anyone knew what the internet was. The orders consisted in person or by phone in the brokerage office. Today, direct contact concerns a very limited scope of activities, and nearly 100 percent. Transactions are done online. That is why we put a lot of emphasis on technology development, we are constantly modernizing our transaction systems, applications and tools delivered by the customer.

The second area of ​​changes concerns customer behavior and preferences. When we started, the pursuit of quick and high profits dominated – often using a loan or term contracts, which was associated with an increased investment risk. Currently, investors are much more aware of the risk and do not expect extraordinary profits from the market. They invest long -term in more stable and safer instruments, where they can participate in the profits of companies in the long -term horizon. So we observe a turn towards more stable instruments such as ETF.

The third change results from the entrance to the new generation of young customers. This generates various expectations depending on the age and level of advancement. In our brokerage house, we meet the expectations of both active and beginner customers. We adapt our systems to both groups. Active investors are looking for advanced technology and analytical tools, and the growing new generation group expects simple, easy and intuitive solutions.

Looking from the perspective of this year’s index increases – it is very good. This is a record period, rare in history. However, I have some unsatisfied, associated with the inadequate response of the mass customer to this good stock market, in particular when it comes to the inflow to investment funds. We see a very large influx of capital to safe, bond investment funds, but this does not apply to joint funds, which is concerned.

We see the causes in relatively high interest rates, but also in regulations imposed on the distributors of investment products. The message to the client is dominated by risk warnings, which translates into customer behavior and the selection of safer instruments at the expense of long -term benefits offered by the joint -stock market.

For the market to develop, we need an influx of particularly long -term capital, as related to saving for retirement. We have a very good PPK program, which powers the market, on the other hand, the OFE slider, which forces the sale of shares and the outflow of capital from the market.

Currently 70 percent RPM on the WSE generate foreign institutions. They dominated the domestic market, which is why, in my opinion, the participation of major participation of domestic, institutional and retail investors would be indicated. In order for this to happen, additional incentives are necessary for the latter that could result in transferring savings from banks to the capital market.

We observe a favorable investment climate. This year’s index behavior indicates great interest and the influx of foreign capital to Europe, including Poland. In recent years, our market has been undervalued due to global uncertainty and conflict behind the eastern border. The perspective of the end of the war certainly stimulated the influx of capital to our market.

The second factor positively affecting the valuations of shares is domestic economic growth and a decrease in inflation.

An additional impulse for the development of the Polish economy should be the influx of EU funds. The market also counts at the end of the war in Ukraine and the normalization of trade relations between Europe and the USA, which can translate into maintaining these positive stock market trends in the long run.

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