For a fourth consecutive year, the Bulgarian Fintech Association (BFA) published its Annual Fintech Report which highlights the achievements of the digital finance industry in Bulgaria and Southeastern Europe. Once again, the Report was created in partnership with Innovative Sofia, the digitalization and innovation unit of the Sofia Municipality, and more than 15 private and public key stakeholders.
The FinTech Mapping is a visual representation of the FinTech industry in Bulgaria. BFA’s data encompasses more than 95% of the industry in the country and all interested in the development of the sector parties, including the Entrepreneurial ecosystem, Regulators, FinTech supporting companies, and institutional players, among which Invest Sofia is also listed as a supporting the Bulgarian fintech sector organization.
Four of the Top 5 best performers by total revenue in this year’s Report are companies with main operating offices in Sofia. These are Datecs, Paysafe, Easy Payment Services, and Experian. myPOS, also part of the Top 5, has a main operating office in Bulgaria based in Varna and another one – in Sofia. In 2021, their revenue accounts for around 48% of the total annual revenue of the Bulgarian Fintech sector.
More highlights from the Report
- In 2022, there are 156 FinTech companies in Bulgaria, of which 92% are SMEs, mostly located in Sofia, Varna, and Plovdiv.
- The FinTech personnel hit an all-time high of 11,862 in 2021, with an average 14% increase for a year.
- 44% of all employed in FinTech in Bulgaria are women.
- In 2020, the Covid-19 pandemic boosted the creation of FinTech companies and they reached their all-time high of 23 companies established in a single year.
- Despite the lower number of FinTech companies founded in 2021, FinTech’s total revenue achieved a historic 25% increase with a historical peak of total revenue – BGN 1.8 billion.
- Digital Payments companies are the main contributor to the 2021 Operating revenue by segment, followed by Enterprise Technology Provisioning FinTech companies and Digital Asset Exchange.
- The productivity of the FinTech sector, measured by operating revenue per employee, grew by 22% on an annual basis in the period 2017-2021, achieving a peak of BGN 222 thousand in 2021, doubling from BGN 112 thousand in 2017.
- The 2022 BFA study finds that the average gross monthly salary in the FinTech industry in 2021 is BGN 3,248 (EUR 1,659), more than 2 times higher than the country’s average gross in 2021.
- For the years 2017-2021 – the investments in FinTech companies rose from BGN 1.3 million to almost BGN 11 million.
- The 2021 BGN 10.03 million VC investments in FinTech represents 1/5 of all 2021 VC investments in Bulgaria, making FinTech the most attractive industry in the country.
The Annual Fintech Report 2022 was officially presented at an event in Sofia Tech Park. The launch was live-streamed and a video recording is available on the YouTube channel of the BFA here. Free download of the Report is available on the website of the Association at: https://fintechbulgaria.org/annual-fintech-report-2022/
