PKO Leasing: the leader of the Polish market has turned 25. Interview with Paweł Pach, President of the Management Board at PKO Leasing.

PKO Leasing: the leader of the Polish market has turned 25. Interview with Paweł Pach, President of the Management Board at PKO Leasing.

“We want to continuously strengthen our position as the leader of the Polish leasing market. We are intensively digitizing, expanding our product offering and building multi-channel sales,” says Paweł Pach, President of the Management Board at PKO Leasing.

A very important year is underway for PKO Leasing – this year the company is celebrating its 25th anniversary. How would you summarize this time?

In one word: development. It most fully describes the transformation that our company has undergone since its founding in 1999. And there is no hint of exaggeration in this, since we are celebrating our 25th anniversary in a leading position in the Polish leasing market.

How has PKO Leasing’s business evolved over the years?

We were one of the first bank leasing companies in Poland, and the market itself was just taking shape. Although there was no shortage of challenges, we never lost our business stability. We finally marked our position during the period of industry consolidation in 2014-2017, which is when the current shape of the market was formed. Today we are a company that sets standards, and in terms of structure and solutions offered we are not inferior to Western Europe.

Currently, several hundred thousand SME and corpo companies use PKO Leasing’s services. How did such a powerful customer base translate into the company’s performance in 2023?

By achieving PLN 102.5 billion in financing, the leasing sector as a whole saw a record year. In turn, our result, as PKO Leasing Group, yielded more than 13 percent market share and confirmation that we are the dominant company in our category. We produced a year-on-year growth rate of more than 16 percent, similar to the industry as a whole, and financed items worth nearly PLN 14 billion. In many areas, we significantly exceeded our targets. In order to maintain such a high level of financing, we have no other way to go but to continue digitizing our services, simplifying processes and developing partnerships with suppliers.

In which areas did the company grow most dynamically?

First and foremost, the passenger car segment deserves a mention, having caught its breath in 2023 after several challenging years. In passenger cars, we grew by more than 26 percent year-on-year. The premium vehicle category, in which we are very strong and which is immune to economic uncertainty, is worth noting here. We also had a great result in machinery and equipment – more than 2 percent year-on-year growth – a result well above the market, which recorded declines.

What key projects and decisions contribute the most to the company’s good performance?

Today we are reaping the fruits of a strategic approach to leveraging the company’s resources and digitizing processes. In 2020-2022, we successfully implemented the “Digital Age of Leasing” strategy, and since last year we have been implementing further measures, scheduled for 2023-2025.

Can you give examples of these initiatives?

We are focusing on areas that are intended to strengthen our company’s position in the market. We are strongly developing fields related to the digitalization of services, including the availability of our offer in stationary stores and the e-commerce channel. Together with PKO Bank Polski, we are working on the topic of process improvements for leasing in the iPKO service. Also this year, we are strongly developing Automarket, a platform for the sale, leasing and long-term rental of new and used cars. We are not forgetting to streamline sales processes in traditional channels – they need to be as efficient as possible and tailored to customers’ needs.

What are the main features of Automarket?

It allows customers to easily compare cars in different financing options. We perfectly hit customers’ expectations with this solution, as evidenced by great sales results in 2023.

We sold 4.7 thousand cars, recording a 25% year-on-year increase. The vehicles we offer come only from reliable sources, which – before appearing in our offer – undergo detailed technical verification. Automarket is a very good example of our omnichannel operation.

What specifically does it consist of?

We introduce omnichannel tools for customers. We integrate different communication and sales channels so that the customer has a consistent experience – regardless of whether they use services online, by phone or in person. In this way, we simultaneously improve customer satisfaction and support sales efficiency. Taking Automarket as an example, we are building omnichannel solutions, going beyond the online sales channel with our offerings, emphasizing our presence in the offline world. In late 2023 and early 2024, as part of Automarket’s development, we launched our first stationary sales outlet in Gdansk, and over the coming months sales will begin in three more locations: in Warsaw and Poznan.

That requires investment in IT.

Yes. And that’s why another of the strategic initiatives is the new IT architecture. We are modernizing the technology infrastructure to better manage data, streamline business processes and enhance security. In this way, we are adapting more effectively to changing market requirements and customer needs.

Do these activities fit into the broader strategic vision of the PKO Bank Polski Group, which includes PKO Leasing?

Absolutely. One could even say that they stem from PKO Bank Polski’s strategy. We carry out a number of initiatives together, building synergy at the Group level. A great example of this is the Automarket mentioned earlier, or the leasing offer available at iPKO. We aim to use the potential of each of the Companies to jointly create the best business offer on the market.

PKO Leasing has had a successful 25 years in the market and is in a very good moment – as evidenced by last year’s results and the multitude of projects the company is implementing. In this context, how would you define your goals for the coming months and years?

It’s true. We place great importance on process optimization. Our primary ambition is to constantly strengthen our leadership position on the Polish market and provide the best offer on the market, becoming the first choice company among customers.

And how do you intend to achieve this?

The initiatives I have already mentioned serve this purpose. Such as the digitalization of processes, including customer verification tools, the availability of online leasing at our partners’ online and stationary stores, and the expansion of the Customer Portal. To this end, we are building omnichannel solutions and developing our product offering. In addition to the “traditional” areas we are entering new ones. These include, for example, products in the RES and ESG category – we finance eco-activities and help customers with green business transformation, including through EU financing. Where PKO Leasing is today is also the result of the commitment, skills and experience of our Sales Network, as well as the employees of PKO Bank Polski branches. We have been working in synergy from the beginning, and this is our strength.

What will the next 25 years bring for PKO Leasing?

We have all the cards in hand to aim very high. We are hungry for more successes. Our resources, professional and ambitious team and the position of the largest company in our category in Poland – all this gives me grounds for great optimism.

Paweł Pach – He has many years of managerial experience in corporate banking and leasing. Since 2007, he has been a member of the management team at PKO BP Capital Group. Since 2019, he has been President of the Management Board of PKO Leasing SA and Chairman of the Supervisory Board of Prime Car Management. Since 2019, he has served as Chairman of the Board of the Polish Leasing Association. Decorated with a silver cross for his merits in social activities.

Last Updated on April 3, 2024 by Anastazja Lach