PREMIUM – Add another challenger bank to the mix, this time in Eastern Europe.

Polish bank Alior is working on launching a digital-first bank later this year, Bank Innovation has learned.

Alior Bank, headquartered in Warsaw, was founded in 2008 and has more than 3 million customers, 216 branches, 219 high-tech mini branches that it calls Alior Bank Express. Alior Bank [Warsaw Stock Exchange ticker: ALR] has a market capitalization of $9.1 billion.

The digital bank, which does not have a name yet, will serve the European market, with a first focus on Germany. It joins the likes of Fidor and N26 to offer “challenger” banking services.

Germany has one of the most advanced ecosystems for digital banks, even before European Union’s regulations like PSD2 made it easy for fintechs to work with banks via API platforms, so it makes sense that Alior Bank to start its new banking venture there, before expanding to other markets.

To create the bank, Alior Bank has tapped Berlin-based solarisBank to supply the infrastructure for current accounts, Philipp Blankenagel, head of communications at solarisBank, told Bank Innovation.

Alior’s digital bank will also provide savings and investment services, for which it is working with deposits marketplace Raisin. Mastercard will power the bank’s debit card.

In an email to Bank Innovation, Blankenagel said that solarisBank is currently setting up the new bank’s infrastructure to include multicurrency account features and international transfers. It is also providing compliance and regulatory infrastructure and will handle the bank’s customer onboarding process, as well.

Alior is planning to unveil the digital bank in in the fourth quarter, solarisBank’s Blankenagel told Bank Innovation.

Alior Bank could not be reached for comment.