The Annual Fintech Report 2020

  • The estimated number of Bulgarian Fintech companies is 100;
  • In the last three years the total operating revenue of the fintech sector is rapidly growing, maintaining a steady increase of approximately 25% on an annual basis;
  • In 2020 Fintech companies in Bulgaria hit an all-time high operating revenue of EUR 361 million;
  • The majority of the Bulgarian Fintech companies operate in the Payments segment, followed by Blockchain and Capital Markets segments; 
  • In 2019, VC Fintech Investments equal to 1/3 of all VC investments in Bulgaria;

Sofia, Bulgaria – For a second consecutive year the Bulgarian Fintech Association released an Annual Fintech Report. The aim of the research, which was conducted in cooperation with SEE News, is to provide extensive information about each of the elements of the industry – from an overview of the fintech ecosystem, through market analysis of the companies, to the regulatory landscape in Bulgaria, the investments in Fintechs and the place of the Bulgarian Fintech in the region of South East Europe. The Report’s main objective is to raise public awareness about the sector and its most remarkable innovations and achievements by providing an in-depth thorough analysis of the Fintech landscape in Bulgaria.

“Our mission is to encourage innovation, develop the environment and help Bulgarian Fintechs shine on the world map.”

Valeri Valtchev,

Co-founder and Chairman

The Key Findings of the report are indicative of the vitality of the Fintech landscape in the country. The number of companies that have been identified as Fintechs is 100, 66 of which are emerging and 34 – established. The heart of the Bulgarian fintech ecosystem is the capital Sofia, which boasts significant tech talent and appropriate business infrastructure, with 84 of the identified Fintech companies being headquartered there. The city is one of the fastest-growing destinations in SEE and is becoming the fintech centre of the CEE region as well. The local startups are backed not only by a number of venture capital funds, angel organisations and private investors, but also by startup supporting initiatives of local banks.

The fintech enterprises cover a wide variety of fintech segments:

  • Blockchain/Crypto
  • Capital Markets
  • Insurance (Insurtech)
  • Lending
  • Mortgage/Real Estate
  • Payments/Billing
  • Personal Finance
  • Regtech
  • Wealth Management
  • +IT development/support for fintech

Each of the above-mentioned sectors has a “representative” company in the country. Still, payments and billing solutions are the most preferred development field for the Bulgarian fintech companies, as nearly 35% of them operate in this segment. Personal finance and capital markets are also popular – their combined share is close to 30%. IT development companies supporting the fintech sector have an important role in the ecosystem as well, as we mapped more than 90 of them.

“Although the Bulgarian Fintech industry is considered a small contributor to the
national GDP, it is one giant leap towards a high-value-added economy. For developing
countries such as Bulgaria, the Fintech industry provides one of a few opportunities
for catching up and promoting a highly efficient economy.”

Valeri Valtchev,

Co-founder and Chairman of BFA

The main conclusions that have been drawn from the Report indicate that the Fintech sector in the country is very vibrant and develops dynamically and that there are a number of favorable conditions that stimulate entrepreneurship in the sphere. Although in its very early stages of advancement, the sector in Bulgaria is full of promise for the entrepreneurs in the field. 

About the Bulgarian Fintech Association 

The Bulgarian Fintech Association is a non-profit organization uniting the leading fintech companies in Bulgaria. The mission of the Association is to create a platform that brings together all parties in Bulgaria with an interest in the Financial Technologies field, and to encourage thecommunication and exchange of ideas among them. The Bulgarian Fintech Association aims at representing and safeguardingthe shared values of its members before regulators, investors, financial institutions, foreign associations, partners and any other party, thus fostering the development of the sector. 

Download the full Report