Financial Supervision Commission put on the innovation map

In the “Annual Report of the Bulgarian Fintech Association” (BFA) for the year 2022 dedicated to the most significant fintech achievements, challenges and opportunities, the Bulgarian Fintech Mapping’2022, the progress in the fintech education and the latest fintech regulations in Bulgaria and the EU as well, Mrs. Maria Filipova – Deputy Chair of the Financial Supervision Commission and Head of the “Investment Supervision” Department took part through delivering a speech on the implementation of financial innovations in the non-banking financial sector.

One of the first steps in this direction was the Innovation Hub established by the FSC. It secures a single contact point for submission of proposals, but also for identification of obstacles relevant to the sector, which shortens the time for responding to inquiries received through facilitated communication and data exchange between the interested parties and the regulator.

We are convinced that an active dialogue among all interested parties lies at the basis for achieving balance between the benefits of the introduction of financial innovations that are applied in the offering of products and services in the non-banking financial sector and ensuring stability and confidence in financial markets and protection of investors’ rights. For this purpose, a working team was created in the Financial Supervision Commission which has to monitor financial innovations in the non-banking financial sector. Its activity is aimed at intensive tracking the benefits and controlling the risks arising from the integration of financial innovations, as well as promoting the dialogue between the regulator and business. In this regard, of main importance are the regular studies and analyzes carried out by the FSC in order to establish the level of innovations used. It is essential to note that such type of studies involve a specially developed methodology for the effective extraction of information, and the results of these studies serve to plan the subsequent and targeted actions“, Mrs. Filipova stressed.

The Financial Supervision Commission declares its readiness to continue its successful cooperation with the business, in sync with the Financial Innovation Monitoring Strategy for the period 2021-2024, which outlines the long-term planned commitments. The regulator will continue to actively work towards the development of financial innovations, by monitoring the development of financial technologies, assessing possible risks for the market and for consumers, and initiating actions and measures to minimize them.

New technologies are changing the non-bank financial sector and the ways in which consumers and companies access services. Moreover, they create opportunities for solutions, which provide better access to finance and improve the financial inclusion of citizens within the digital society. Financial technologies support the operational efficiency and further increase the competitiveness of the economy of the countries in which they are used and contribute to the deepening and expansion of capital markets in the European Union.

Mrs. Filipova’s speech about financial innovations as a way to develop the non-banking financial sector is available here.

To present the report, the BFA organized a conference on “Bulgaria on the European Fintech Map – 2022”. On December 15, the hybrid event brought together leading experts from the world of fintech and presented findings on regulations, fintech education and innovation. Among the panelists, from the University of Sofia, VUZF, the European Commission, etc., was Mr. Vladislav Matev – chief expert in the “Public Companies, Securities Issuers and SPV” department of the Financial Supervision Commission, who presented fintech regulations in the non-banking financial sector.

He emphasized that the activity of the Financial Supervision Commission is fully aligned with the development of financial technologies. As a result of their use, not only the growth of the activity of individual participants in the capital market is expected, but also the transformation of the capital market as a whole.

Mr. Matev outlined the key topics in the fintech sector, such as the adoption of new pan-European regulations including those with direct effect in all member states, which is aimed at accelerating the growth of the single European capital market.

He also drew attention to the strategic goals set for the new business model: facilitating access to the capital markets of emerging and small and medium-sized enterprises; increasing the financial literacy of society; protecting the interests of investors and users of financial services and maintaining the stability of the capital market.

Mr. Matev concluded his participation by saying: “I am convinced that through the ever wider application of financial innovations, the Bulgarian capital market will increase its attractiveness for both local and foreign investors.”

The entire report for 2022 of the Bulgarian FinTech Association is published here.