Whenever it happens, joining the Eurozone and adopting the second most widely used currency in the world is a long-awaited process for Bulgaria. It will positively impact our economy and serve as a driver for accelerating reforms, improving prosperity and achieving European living standards. It will bring many benefits to citizens and businesses, not only by reducing transaction costs but also by improving the investment environment – activating local and foreign investments that are expected to support employment. It is expected that the adoption of the euro will stimulate Bulgaria’s international trade, especially in some manufacturing sectors where Bulgaria already has established positions in the EU supply chains.

At the Association of Banks in Bulgaria, we plan to conduct an informational campaign among citizens, together with the Bulgarian National Bank and the government, to highlight all the benefits of adopting the euro, which will significantly improve the environment in which we all do business. All of us – banks, businesses and the state – must speak with one voice and send clear messages to help our clients, employees, and society navigate the sea of information and misinformation and clearly understand the benefits of adopting the euro.

The phygital model – for us, this is the future of banking

The euro has long been part of our everyday lives. A large portion of real estate prices are already quoted in euros, and Bulgarian citizens are already concluding deals and making payments in euros. Entering the Eurozone will open many new horizons for development, support for businesses and the economy. I would also like to address a concern shared by some people – whether the currency conversion will be carried out at the fixed central rate of 1.95583 leva per euro. Existing contracts, such as loans, deposits, or financial instruments in leva or with references to the leva, will not be altered or canceled. Loans and deposits will be converted at this fixed rate. Now is the time to advise clients to use the months before the euro adoption and deposit their money into their bank accounts.

Postbank were the first bank with a campaign allowing every client to deposit their money without fees. This meets consumer expectations for convenience and speed in our services and demonstrates our commitment to being a trusted and reliable partner, simplifying processes as much as possible and showing our support for the country’s path to the Eurozone.

Wheels in motion
There is an undeniable momentum around digital transformation in our sector, as we all strive to achieve a better experience for end users while driving efficiency through innovation. Innovations are a great springboard for the banking sector and should be a priority if you want your business to move forward. The future is technological, and banks will evolve at an even faster pace. Technology provides much more information and significantly increases the speed of our work. The rapid implementation of high-tech solutions greatly improves the customer experience. This allows us to offer our clients even higher-quality and more efficient banking services. Digital cards, virtual wallets and QR code payments are just a small part of the new reality. Data analysis tools are particularly important, as they can facilitate better risk analysis, faster reactions to market developments and greater resilience. Today, banks must focus on the flexibility with which we respond to environmental changes. With the integration of artificial intelligence, we can proactively develop scenarios that simulate a range of potential ‘what if’ situations – from interest rate increases to sudden deposit inflows – and assess the bank’s vulnerabilities if these scenarios unfold.

The future is technological, and banks will evolve at an even faster pace

At Postbank, we aim to offer personalised financial products and digital services, combining the latest technologies with traditional methods, a personal approach and professional consultation. We make significant investments in process re-engineering and human resources to create user-friendly applications that enhance the customer experience with us. We continue to invest in the development of our digital service channels and expand the phygital model – for us, this is the future of banking. We utilise many digital solutions that open new opportunities for us.

We are modern, but at the same time, artificial intelligence could never fully replace the human factor and the added value that comes from interacting with a real expert, because our clients want to speak with them personally. That is why we focus on hybrid forms of banking, the complex model between digital and physical services, and the customer experience across different channels and platforms – consistently and in real-time – this is what we are doing at Postbank and what our clients expect from us. Technology is changing work processes and offering another advantage – more free time for our employees to focus on experiences beyond the work environment.

Money mentors
Banks and credit institutions can and do play a crucial role in improving financial literacy, which in turn helps people strengthen their finances, including their credit rating. Being digitally and financially literate is not only trendy but also a key advantage for success and personal and business development.

Banks must focus on the flexibility with which we respond to environmental changes

Investments in education, skills development, and competency building are by no means new for Postbank. These are our long-term commitments, which is why the bank has implemented numerous initiatives focused on improving young people’s skills, as well as many other programmes in the field of corporate social responsibility. Among our leading projects in education are the large-scale initiatives with several schools and universities. Postbank is also part of the partner community for the mentor programme ‘Mentor the Young,’ whose goal is to inspire real change in the careers and personal lives of participants by giving them the opportunity to meet established experts from various market sectors.

For example, with the creation of our innovative programme ‘Project YOUth,’ our aim was to expand young people’s access to personalised and secure financial solutions that will help them develop the necessary culture regarding personal budget management, building new savings habits and responsible consumption.

We also recently launched a large-scale strategic partnership with Junior Achievement Bulgaria, aimed at improving financial literacy among young people in Bulgaria. Through the programmes ‘Personal Finance’ and ‘Practical Finance,’ we will equip students with basic financial knowledge and skills to help them make informed decisions in their personal and professional lives and better manage their finances.

Our goal is not only to provide the necessary knowledge, practical guidance, and useful advice to young people but also to inspire them to take an active role in shaping their financial future.

Therefore, we will continue to dedicate a lot of time and resources to CSR programmes related to the financial wellbeing of citizens, financial sustainability of businesses, financial education and their importance to the stability of society.