FM Bank's network currently comprises 60 outlets, including four in Warsaw Mateusz Gołab/WBJ

Although the dust hasn’t yet settled from the turmoil of the economic slowdown, a new bank is entering the Polish market. FM Bank has been given a license by the Polish Financial Supervision Authority and officially launches operations this week.

The bank wants to cater to micro firms, which employ up to 10 people with yearly turnovers of up to zł.1 million, and to small companies of over 10 employees, with yearly turnovers of up to zł.3 million.

“What we have noticed is that small and micro firms have the biggest problems when it comes to obtaining financing. As a result they lack investment and floating capital, which are key to their existence,” said Henryk Pietraszkiewicz, CEO of FM Bank.

Single-person businesses are also potential customers. Small and micro firms account for about 99 percent of all companies in Poland, according to FM Bank, but are the most risky debtors and thus remain neglected by major banks.

“To offset the risk we have created our own credit scoring system, which includes visiting businesses, assessing their cash flow and working together with clients on business plans,” said Tomasz Maciejewski, the company’s CFO. FM Bank has thus employed mobile advisors who will visit clients.

With zł.150 million in own capital, the bank’s revenue model is based on income from interest rates and fees on bank accounts. FM Bank’s management declined, however, to cite interest rates, explaining they will be “of market level.” The bank hopes to attract 40,000 clients in its first year and break even at the turn of 2011 and 2012.

The bank’s management stresses the importance of the knowledge and experience many of its staff gained as managers at Fundusz Mikro, a company established in 1994 by foreign assistance program the Polish-American Enterprise Fund, which aided the development of small firms. Investors include private-equity fund Abris Capital Partners, International Finance Corporation and private investor Piotr Stępniak, a former executive at Lukas Bank and Getin Holding.