If you think back to how you used to manage your money before everything went digital, you’ll appreciate just how much fintech has reshaped our daily lives. From the US to Eastern Europe, each ecosystem has its main players –from fintech start-ups to central banks – that deserve recognition for driving the financial industry forward.
To do exactly that, the Romanian Fintech Association Gala brings together the brightest minds in Romania’s fintech scene. It’s an annual event that not only hands out awards but also spotlights how far fintech has come in Central Eastern Europe (CEE).
This year, the gala, which took place at The Marmorosch Hotel in Bucharest, was especially significant as it coincided with the launch of the Romania-Bulgaria Fintech Report—a collaborative effort between the Bucharest Business School and the Faculty of Economics and Business Administration in Sofia.
The report was the brainchild of several distinguished academics and industry experts, including Associate Professor Vasile Alexandru Strat, Dean at Bucharest Business School, who attended the Gala, and Dr. Deyan Radev from the Faculty of Economics and Business Administration, Sofia University.
Community and Innovation at the RoFintech Awards Gala
This year’s Romanian Fintech Association Gala was all about class with a twist. Industry leaders gathered not just to celebrate but to connect. The presence of the Bulgarian Fintech Association added to the event’s significance, underscoring the growing cross-border collaboration in the fintech sector.
The event was marked by several key award presentations, with iFactor stealing the spotlight. They picked up three out of the four nominations, including awards for the “Most Innovative Fintech Project,” “Collaboration of the Year” in partnership with Raiffeisen Bank Romania, and “Fintech Startup of the Year.”
Our continuous effort to democratize access to financing and innovation through technology and successful collaborations with leaders in the financial industry has brought iFactor three top awards at the Romanian Fintech Awards Gala. We thank the Romanian Fintech Association for organizing the event and the jurors for recognizing our achievements!
Cosmin Curticapean, CEO of iFactor
Another nominee recognized with an award was BCR, which received the “Excellence in User Experience” award for its George platform. The bank was also honored for its commitment to innovation with the “Romanian Open Banking Initiative (ROBI)” award. Additionally, Banca Transilvania (BT) distinguished itself by receiving the “Bank Most Open to Fintech Collaboration” award, underscoring its proactive approach to engaging with the fintech sector.
Bridging Markets Through Collaboration
For the past five years, fintech in Romania and Bulgaria has been on a rapid ascent. This latest report, which was unveiled at the RoFintech Gala, represented a joint effort between some of the top academic institutions and fintech associations in both countries, analyzing what’s been happening behind the scenes. It’s the first of its kind to assess both ecosystems, using consistent methodologies and updated data to keep things comparable year over year.
Coordinated by the Bucharest Business School and backed by the Romanian Fintech Association, the effort also includes insights from Sofia University’s Faculty of Economics and Business Administration and the Bulgarian Fintech Association. This broad team approach has pooled expertise from across four major universities to tackle the complex task of mapping the fintech landscape—a landscape where distinguishing a fintech firm from a non-fintech firm can be trickier than most people think.
Of course, getting the data for this kind of report isn’t as simple as sending out a few surveys. In their analysis, the team streamlined how they categorized fintech companies compared to earlier studies. They looked at two broad types: those providing direct financial services and those offering the technology—support and services that make the digital work. As a result, they came up with the following insights:
Diverse and Dynamic Ecosystems
Both countries show solid growth and a burst of innovation with a mix of startups and established companies, especially in urban hubs like Bucharest and Sofia. Both ecosystems benefit from an increasing pool of tech talent and a growing interest from international investors looking to tap into emerging European markets.
Complex Regulatory and Legal Landscape
Both countries are tightening their belts with regulations that aim to keep pace with global standards. The EU’s frameworks, including the latest on digital finance and payment services, play a big role, but local adaptations mean there’s a unique twist to how things are done in each country.
Economic Impact
Sectors like digital payments and enterprise technology are leading the charge. Digital payments are surging thanks to increased online consumer activity and a push towards cashless transactions. Enterprise technology, particularly solutions that streamline operations and enhance security, is also getting much attention as companies look to scale efficiently and securely.
Challenges
Regulatory issues and the fast pace of technological change can be tough to keep up with. Adoption rates for new technologies are climbing, but it’s not without growing pains—integrating advanced tech like AI and blockchain is still a major hurdle for many. Strategically, there’s a strong focus on innovation and scaling up, but finding the right talent and navigating the regulatory environment are significant challenges.
Fintech in CEE: Growth Trajectories in Romania and Bulgaria
In Bulgaria, the fintech sector has concentrated growth within the nation’s three largest cities—Sofia, Plovdiv, and Varna—with Sofia emerging as the heart of this activity, hosting 131 of the total 156 fintech firms. This cluster of companies benefits from a strategic mix of high-quality education facilities, robust digital infrastructure, and strategic geographical positioning. Of course, this transition (as with most countries from the Eastern part of Europe) happened right after the fall of the communist regime.
A seminal transformation within the digital finance sector in Bulgaria unfolded following the dissolution of the communist regime.
(Radev and Penev, 2024)
This change marked a shift from public sector-driven innovation to a dynamic market-oriented approach that has spurred growth, especially in 2018 and 2020.
Romania’s fintech sector, on the other hand, has rapidly matured, shrinking the gap with more established markets. This growth is fueled by new funding opportunities, increased cooperation within the ecosystem, and some notable exits. The Romanian fintech ecosystem has strengthened its regional and international ties, laying a foundation for future collaboration and innovation.
Since its inception, the Bulgarian Fintech Association has applied the Quadruple Helix Model of Innovation, involving government, academia, industry, and civil society, to foster a comprehensive developmental approach for the ecosystem. In Romania, similar collaborations are underway, with universities increasingly playing a central role by aligning with fintech firms to bridge the gap between regulatory frameworks and market needs.
These research projects, together with the close collaboration with RoFintech, could lead to FinTech spinoffs emerging in the coming years, founded either by faculty members alone or by faculty members together with executives from the existing companies.
Success Stories
In Central and Eastern Europe, particularly in our two centers of interest, fintech companies are making strides without much fanfare but with a lot of substance. Companies like Paynetics(Bulgaria) are creating a niche for themselves in the digital payments sector by helping small businesses and freelancers accept payments digitally without the need for traditional and more costly payment systems. This service has been especially crucial for small enterprises looking to modernize quickly and affordably.
In Romania, start-ups like iFactor are demonstrating the power of targeted solutions. Their approach is direct and practical: they offer an innovative financing platform that leverages technology to provide quick, flexible funding solutions to small and medium-sized enterprises (SMEs). This is crucial in a market where traditional banking procedures can often be slow and restrictive.
These examples exemplify how targeted innovation and collaborative efforts can result in a dynamic and inclusive financial environment. By addressing specific market needs and overcoming traditional barriers, fintech companies are paving the way for a more inclusive and efficient financial landscape in this part of the world.
