Banking services in Bulgaria rank among the most accessible within the European Union, according to a detailed analysis by the Economic Analysis and Policy Department of the Association of Banks in Bulgaria (ABB). The study focuses on countries in Central and Eastern Europe (CEE) with similar territory, population, and economic development levels, drawing several important conclusions.

Firstly, Bulgarian banks provide the lowest interest rates in Europe on newly issued loans to households for home purchases in the national currency. Data from the European Central Bank (ECB) for March 2025 show an average interest rate of 2.46% in Bulgaria. This is notably lower compared to 2.94% in Croatia, 2.99% in Slovenia, and a much higher 6.82% in Hungary.

Subscription service packages stand out for their cost efficiency, offering significantly cheaper options than using individual banking services. These packages typically include a current account, debit card, utility bill payments, ATM withdrawals, and transfers via mobile number or electronic banking channels. In many cases, the bundled price is over six times lower than paying for each service separately. Some banks tailor packages specifically for young people and pensioners, offering even more favorable terms.

When it comes to overall accessibility, the cost of basic banking packages in Bulgaria is the lowest among comparable CEE countries. According to data published by the Bulgarian National Bank (BNB), a basic package costs only €1.70 per month in Bulgaria, compared to €5.90 in Croatia, €4.90 in Hungary, and €5.90 in Slovenia. This means Bulgarian customers pay 188% less than those in Hungary, and around 247% less than clients in Croatia and Slovenia. Standard packages, which include additional services like mobile banking and inter-bank transfers, also cost significantly less in Bulgaria — between 44.5% and over 300% cheaper than in the other countries analyzed.

The banking sector in Bulgaria has undergone rapid digital transformation in recent years, moving away from a reliance on physical branches to offering comprehensive online and mobile services. This shift is driven by advances in technology, changing consumer habits, and the need for banks to stay competitive and efficient. Customers now benefit from faster, more convenient, and cheaper access to banking, including account management, credit applications, and payments.

One clear indicator of this digital shift is the sharp rise in electronic payments. Cashless transactions via debit and credit cards, mobile apps, and online banking are becoming the norm, even in traditionally cash-focused markets like Bulgaria. According to BNB data, 76% of banking transfers were initiated through digital channels by the end of 2024. Paper-based transfers have dropped dramatically — by 73% in 2023 compared to the previous year — while electronic transfers grew by 32%. This trend is partly explained by the much lower fees for digital transfers, which are often included in package deals, and the overall ease of using digital platforms.

Despite these advances, Bulgaria’s banking sector generates a smaller share of net income from fees and commissions than the European average. As of the end of 2024, the ratio of net income from fees and commissions to total operating income was 20.6% in Bulgaria, compared to an EU average of 28.1%, based on data from the European Banking Authority (EBA) and the BNB. This difference partly reflects the broad range of services included in fees and commissions, such as investment brokerage and consulting.

The Association of Banks in Bulgaria has been the main representative body for the country’s banking sector for over 30 years. ABB aims to support the development of a stable, innovative, and sustainable banking environment that benefits both the economy and society. With 22 member banks employing over 25,000 people, ABB works closely with state institutions and private organizations to promote financial literacy and secure digital services. It is also a member of key European bodies like the European Banking Federation and the European Payments Council, aligning its work with best European practices.