Technology Trends on the Polish Capital Market

KDPW has once again partnered with Dziennik Gazeta Prawna’s Digital Economy project. Jacek Pochłopień spoke with KDPW CTO Rafał Wawrzyniak about the technological breakthrough ahead of the Polish capital market.

Asked about key technological trends in the Polish capital market, Rafał Wawrzyniak said that the Polish capital market is digitally advanced and highly digitised. This represents an advantage over Western European countries, but at the same time poses a challenge to further innovation. Every innovation should bring added value and move the company not just one but several steps forward. Once you are well digitised and processes run smoothly and efficiently, it is harder to generate added value.

Regarding new trends, one cannot ignore AI. Artificial intelligence is leading the way in many areas of the economy. However, from the perspective of capital markets, it is primarily used in the evolutionary improvement of processes, such as the automation of asset trading or the screening of transactions to detect irregularities. So far, however, AI does not seem to be a game-changer in the capital market.

Another trend is blockchain or rather the value it brings: the tokenization of assets.

Tokenization involves representing assets in the form of tokens, harnessing the value that this form of representation offers. It is about the fast and secure exchange of value, which eliminates redundant intermediaries. It is clear now that one can only eliminate the surplus of intermediaries. If the market is to be truly secure and protect investors, intermediaries are essential.

According to KDPW, asset tokenization is an innovation that could transform the Polish capital market. Particular potential emerges in payments given significant inefficiencies in the transfer of funds between different locations around the world. Blockchain, digitalisation and tokenization can take these processes several steps forward.

The Polish capital market and securities trading, which currently operate on business days, five days a week, within specific hours, could become more accessible, faster and more efficient thanks to innovation. Transactions could be executed and settled and ownership of assets transferred in a matter of seconds, 24 hours a day, 7 days a week. This would be a revolution in the functioning of the capital market. This technological trend is emerging in Western European countries and is expected it to drive sweeping changes in the near future.