Analytics
Balkans FinTech Research
We are excited to announce the upcoming release of our report, "Balkan Fintech Market Overview," prepared in collaboration with our partner Serbian fund, which has a presence extending far beyond Belgrade to Lisbon, Abu Dhabi, Hong Kong, and Tokyo.
In a global comparison, the Balkan FinTech market is relatively small. However, the regional landscape presents a prime opportunity for digital transformation, evidenced by robust metrics in digitization and foundational banking services. Since 2018, the Balkan region has attracted €1.7 billion in venture investments.
In the first half of 2022 alone, it secured a record €995 million, highlighted by deals such as Viva Wallet's €762 million investment from JP Morgan Chase and Payhawk's €205 million.
We highly recommend diving deeper into this promising region. And if you're looking for a custom report tailored just for you, reach out to us, and we'll discuss exactly what you need.
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Project brief
A venture fund [NDA] recently approached Blank with a proposal to conduct research on the Balkan market. The aim is to develop a comprehensive understanding of the market, encompassing startups, technologies and venture ecosystems.
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Content & Insights
//Exploring the Balkan FinTech Landscape in a Global Context
We began our journey from the global financial market, introducing the less informed reader to its broad trends before smoothly transitioning to the specifics of the Balkan market.
Given the current trajectory and the increasing integration of technology in our daily lives, FinTech is projected to double in size by 2030. Digital payments are expected to grow at a 20% CAGR, while digital lending is set to rise at an impressive 24% CAGR. How does this relate to the Balkan market? Absolutely.
In the Balkan venture ecosystem, 19% of startups focus on Payment Processing & Networks, followed by trading infrastructure and the defi & web3.0 hype. Over the past six years, there have been more than 200 deals in the region's FinTech market, with Romania leading at 51 deals, Hungary at 45, and Bulgaria at 40. Despite the global crisis shrinking the venture market in the Balkans in 2023, a recovery in deal volume is expected in 2024.
//Country Profiles in Balkan Fintech
We delved deeper into the regional FinTech infrastructure, creating profiles for each country. These included general characteristics like the Innovation Index and top bank networks, as well as industry-specific metrics such as banking penetration, mobile payments penetration, and credit/debit card penetration.
An interesting fact is that, on average, 13 FinTech startups are created per million population in the region. Montenegro stands out with many startups due to its easy business registration process and the tax benefits it offers to new companies.
//Voices of Industry Experts
What truly adds value to research is not just desk work but insights born from multiple interactions and clarifications with industry experts. This approach is our hallmark, which is why our report includes findings from 16 interviews. Twelve interviewees are from Serbia, including representatives from the top three banks, large vendors, and ASB. The remaining four interviewees operate in multiple countries within the Balkan region.
By combining broad market insights with detailed regional analysis and expert opinions, our report offers a comprehensive overview of the dynamic and promising Balkan FinTech landscape.
Methodology
Exploration of VC Databases
Our team meticulously analyzed a variety of venture databases to gather and scrutinize data on startups, funding rounds, and investor profiles. We utilized resources including Crunchbase, Dealroom, the United Nations data portal, The Global Economy, The World Bank, and F6S.
Insights from Industry Experts
To validate our findings and gain deeper insights into the venture landscape, we engaged with industry experts. Their invaluable perspectives enriched our understanding and significantly enhanced the accuracy of our research.
Analysis of Market Reports and Additional Sources
To ensure a holistic view, we incorporated information from academic journals, governmental reports, and other reputable sources. Notable references include the "Fintech Innovation in the Western Balkans: Policy and Regulatory Implications & Potential Interventions" by the Cambridge Centre for Alternative Finance, and the "World Factoring Statistics" survey by FCI, among many others.