The Bulgarian financial sector is on the verge of a digital revolution, but our data indicates that ambitions are outpacing results. A joint study by Konica Minolta and Evrotrust reveals that despite clear transformation goals, there is a significant discrepancy between companies’ plans and their actual level of digitalization.
What is causing this lag, and more importantly, how can financial businesses catch up and achieve their goals most effectively? This is the topic we shall tackle today.
What Are Financial Companies Striving for?
Our survey shows that approximately 85% of finance organizations in Bulgaria have adopted a digital development strategy. This impressive percentage indicates that financial institutions are well aware of the need for innovation.
Some are committed to long – term plans for comprehensive transformation, including the integration of AI and the automation of routine processes. Others are addressing isolated digitalization projects, such as implementing new software in specific departments.
Many of the companies interviewed stated that they plan for 90 – 100% digitalization of their portfolios. The drivers behind this push for high – level digital transformation include the need to comply with regulatory requirements, improve company efficiency, and increase customer satisfaction – as many clients now expect fully remote service.
The Reality: Only 60% of Processes Are Digitalized
However, despite these high ambitions, only about 60% of internal processes are actually digitalized. This suggests that while there is a strong desire for innovation, there is still significant room for improvement.
A substantial portion of the financial sector is falling short of its own targets, even with a clear strategy in place. This disparity is most evident in processes like manual document handling, in–person identity verification, and paper contract signing, which remain widespread practices.
If you are curious about what else our report reveals, you can download the full study here – note that the report is in Bulgarian.
Why Do Ambitions Fall Short of Reality?
The primary reasons many companies have not yet fulfilled their internal transformation promises boil down to several key factors:
- Insufficient resources or technical capacity. This includes a lack of both financial investment and qualified IT experts to implement and maintain new systems.
- Regulatory challenges. Constantly evolving compliance requirements, such as GDPR and Anti–Money Laundering (AML) directives, often slow down innovation as legal teams must continuously adapt.
- Limited knowledge of best practices and available solutions. A lack of awareness about existing, ready-to-use technological platforms can lead companies to overlook effective solutions and rely on outdated methods.
All these factors show that digitalizing a high percentage of services and processes requires dedicated teams to research, select, and develop appropriate solutions.
What Are the Consequences of Falling Behind?
Inadequate digitalization is not just an inconvenience. It has a real, negative impact on a business’s competitiveness. Manual or partially digitalized processes lead to errors, delays, and significantly higher costs for the company.
Another key consequence is that falling behind can alienate customers and reduce profitability. Many clients now expect businesses to offer entirely paperless services. If a company fails to provide them online, customers are likely to turn to a competitor who has already overcome this challenge.
The Solution: How To Accelerate Digital Transformation
The good news is that even businesses that are behind can catch up and meet their goals in just a few steps.
First, one of the most crucial introductions for companies looking to digitalize their processes is the adoption of solutions for authenticated electronic identification and electronic signatures. These two services make remote interactions possible and convenient by eliminating the need for in–branch physical visits. When these services are provided by an eIDAS-approved qualified trust service provider like Evrotrust, they are automatically compliant with all EU regulations.
Second, companies should prioritize the integration of pre – built technology platforms to streamline their workflows. This includes using specialized software for specific departments (e.g., accounting and finance, HR) as well as CRM and ERP systems that optimize daily operations and boost efficiency.
Last but not least, every organization should invest time in employee training to ease the transition to more innovative processes. Encouraging departments to identify additional opportunities for digital optimization themselves can be extremely effective.
Don’t want to fall behind? Contact our team to find the most suitable digitalization solution for your business.
Conclusion
Digitalization is no longer just a technological choice – it’s a strategic necessity. It is the path to more efficient processes, more satisfied customers, and sustainable growth. Bridging the gap between ambition and reality requires a combination of the right technologies and a focus on people – both clients and employees.
