Where is Bulgaria’s place on the world fintech map? :: Investor.bg
If you look at Europe and wonder where it will increase in the future, where there is still room for growth, this is the region in Eastern Europe. Financial technologies are very important, but human relationships are more important than them. This is how you comment on the future of payments in the show “In development” on Bloomberg TV Bulgaria Johann GabrielsRegional Director for Southeast Europe in the payment services company iBanFirst, which will soon open an office in Sofia.
“And it’s not just about expanding business, but also about creating an IT department and a back office. We are proud that a significant percentage of the people we hired in our new office in Sofia are Bulgarians who have worked abroad and worked again in the country, “she said.
According to Johan Gabriels, international banks and fintech companies need to open branches in the region of Central and Eastern Europe. “Here, many fintech and other innovations and quite large brands were originally created in Eastern Europe. We are talking about transfer platforms like Revolut, “he recalled.
The manager confirmed that there are competent IT specialists in Bulgaria and is an engine for many of the fintech companies in the region. “On the other hand, this means that you, as consumers, have adopted these technologies relatively early,” she said.
Regarding the market in Bulgaria and Romania, Johan Gabriels said: “You are so close, but so different. In both countries you have adopted fintech services early. If the difference has to be made – it takes more time to increase the trust of the Romanians than the Bulgarians “, the manager shared.
This refers to the volatility of foreign exchange markets after the start of the war in Ukraine. Johann Gabriels said: “The first thing you need to know is: 95% of foreign exchange trading is speculation and positioning. It usually has the effect of some big event happening around the world. This is a particularly important and next recovery. “
According to him, currencies are positioned in different currency markets. “For example, the lev is pegged to the euro and we have no variations, but the Romanian leu is a managed approach, which means that the International Bank is intervening to control volatility. Poland, Hungary and the Czech Republic have a free course. There is no reaction in Bulgaria against the euro, but this is not the case with other currencies, “the expert added.
Io Gabriels points out that everything in favor of this, still has its own currency, is that the National Bank can increase the interest rate to stabilize the currency and even allow to establish some. “That is why the Romanian currency is relatively stable against the euro, because it significantly increases the interest rate, while the European Central Bank currently maintains unchanged interest rates on the euro,” he said.
What are the most common approaches to currency risk hedging at the moment? What are the most used currencies in the company’s platform? When will the yuan appear on the platform? How did the war in Ukraine affect cross-border payments? What are the most used currencies for payment through the iBanFirst platform?
See the full commentary in the video Bloomberg TV Bulgaria.
All guests of the show “In development” can watch here.