Petia Dimitrova: “The future is technological, and the banking sector will evolve at an even faster pace”

 
Mrs. Dimitrova, this is the third consecutive year you are participating in the “Capital 100″ project, and Postbank is ranked among the largest companies in Bulgaria. To what do you attribute the business successes of the bank, and which of them are most valuable to you?
Thank you for the invitation and the recognition. Our success is due to the trust of our clients, partners, and shareholders, the hard work of our employees, and the courage to invest in innovations that rapidly change banking. I couldn’t rank the bank’s successes because all of them are important to me. I am pleased that we managed to quickly develop our new brand, “PB Personal Finance,” to integrate the new team, and at the same time continue with the large-scale digital transformation of the entire bank, which we started in recent years. For us, I can boldly say that 2023 was one of the most successful years in the bank’s history. Our net profit reached 308 million leva, which represents an annual growth of nearly 50% in a record-breaking year for the entire sector. Our return on equity rose to 14.6%, which is over 3% more than in 2022. These successes, however, would not have been possible without our clients. For 33 years, we have been an indispensable partner for them because we know how to listen to their needs, offer excellent customer experience, and have proven ourselves to be a stable and secure bank for their finances, one they can rely on 24/7. They all know that behind the Postbank brand stand experts who are always available to help them. We continue to be an indispensable partner for Bulgarian businesses as well – from large companies seeking to enter international markets to small family firms – offering them flexible financial solutions with balanced interest rates. I am proud of our team and am delighted that, for the second consecutive year, we were recognized as a “Top Employer” in Bulgaria by the Top Employers Institute. This prestigious international award is very valuable to us because it affirms our efforts to create a motivational and excellent work environment. Soon, we will continue to grow by investing in innovations, technologies, and a green future, in alignment with our ESG strategy, because these are the drivers of change in the sector. I believe that all of this will bring us many more business successes.
 
You talk about investments in technology, and I must ask how the banking sector is transforming in terms of innovations in customer service.
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 customer experience. This allows us to offer our clients even higher-quality and more efficient banking services. Digital cards, virtual wallets, 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.

At Postbank, we aim to offer personalized 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 utilize 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’s 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, free time for our employees to focus on experiences beyond the work environment.
 
What new developments can we expect as part of Postbank’s large-scale digital transformation?
At Postbank, we are currently working on several key projects that align with our vision for sustainable growth and strategic priorities. We are investing in our digital channels, making them even more intuitive and user-friendly, in end-to-end digital processes that are key to freeing employees from routine tasks, and in our self-service zones, which save our clients time in our revamped branch network. We are currently developing new functionalities for our mobile banking app, m-Postbank. At the beginning of the year, we joined forces with Vivacom in a special partnership aimed at promoting the “Smart POS by Postbank” service, designed to simplify digital payments for small businesses in Bulgaria. The digital transformation of all our departments is a long process, and it will enable us to be more flexible for our clients and faster when they need an immediate financial solution for themselves or their businesses. The end user doesn’t care about what happens behind the scenes – they want experiences and services that simply work. That’s why we strive to make sure they don’t feel the transformation process but only benefit from it. The most important thing in our business is for the customer to feel special and trust us.
 
What are your most sought-after products and services, and what can we expect in the future?
We are seeing a growing interest in our mobile wallet, ONE wallet by Postbank, where users who are not even our clients can easily and quickly register, as well as in our digital assistant EVA – a chatbot based on artificial intelligence technology that speaks both Bulgarian and English. The service focuses on communication, offering clients real-time consultation. We are soon going to upgrade its functionalities. “Digital people” are becoming employees in more and more industries. Technology is just a tool, but as important as the technology itself is the creation of a culture of innovation internally and having the right people on the team. That’s why we continuously invest in training our employees. We, the people, must select and filter the best of everything that artificial intelligence can offer us, and this applies fully to the banking sector as well. Today, banks are more efficient, more modern, more digital, and much more transparent, and banking services are much more accessible. But I would like to emphasize something important – there are no innovations without financial literacy, and banks have a key role to play in this process.
 
You mentioned financial literacy. Could you tell us what Postbank is doing in this regard?
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.
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 programs in the field of corporate social responsibility. Among our leading projects in education are the large-scale initiative with the National High School of Commerce and Banking and the Private Vocational High School of Banking, Commerce, and Finance, strategic partnerships with the American University in Bulgaria, SoftUni, the educational program implemented in collaboration with Finance Academy, and the partnership with Sofia University for the master’s program in “Finance and Banking.” Postbank is also part of the partner community for the mentor program “Mentor the Young,” whose goal is to inspire real change in the professional, career, 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 program “Project YOUth,” our aim was to expand young people’s access to personalized 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 programs “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 programs related to the financial well-being of citizens, financial sustainability of businesses, financial education, and their importance to the stability of society. I must also note that digitalization and financial literacy are key topics on our path to the Eurozone.
 
In this regard, what are your expectations regarding the benefits of Bulgaria joining the Eurozone and adopting the euro, and are banks prepared for this process?
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 on 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 agriculture, services, and tourism, but also 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, relying on the support of the Bulgarian National Bank and the government, to explain 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 euro has long been part of our everyday lives. A large portion of real estate prices is already listed 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 – that the currency conversion will be carried out at the fixed central rate of 1.95583 leva per 1 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 the 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. We 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.
 
Lastly, I must ask—what qualities a good leader and the banker of the future should possess?
Certainly, they should be drivers of innovation, while simultaneously being a team player and a visionary. They need to be flexible and open to technology and the new reality. The secret to success lies in making the right decisions, but those decisions are made by knowledgeable, prepared, and motivated individuals who inspire the team around them. The future of any company reflects the mindset of its business leader. I am proud to work with true professionals at Postbank, people who are not afraid of today’s innovations and challenges, but rather turn them into advantages for tomorrow.