Digital Laggard, FinTech Frontrunner? Neobanks and the Paradox of Digital Adoption in Bulgaria (OpenAlex (recherche mondiale))

Summary

• In 2025, 86.5 per cent of Bulgarians aged 16 to 74 used the internet regularly, while internet banking usage remained significantly lower at 31.1 per cent.p.3
• Revolut reported 670,000 retail customers in Bulgaria in October 2023, achieving a growth rate of 47 per cent over the preceding 12 months.p.3
• Digital-only banks accounted for 3.9 percent of Euro area banking assets at the end of 2025, rising from 3.1 per cent in 2019.p.8
• In 2025, 51.2 per cent of the Bulgarian population bought goods or services online, outstripping the 31.1 per cent using internet banking channels.p.13
• Regular internet use across Bulgarian regions ranged from 83.2 per cent in the Southeast to 90.4 per cent in the Northeast in 2025.p.15

Key insights

1. Bulgaria exhibits a substantial Digital-to-Financial Conversion Gap because general digital adoption has expanded much faster than internet banking usage.p.3
2. Neobanks primarily contest the transactional banking interface while incumbent banks retain control over core deposit liabilities and credit creation.p.2
3. Rapid adoption of platforms like Revolut leads to functional unbundling of banking relationships rather than immediate primary bank replacement.p.5
4. Regional digital connectivity in Bulgaria is far more balanced than regional internet banking adoption rates.p.15
5. Digital skills vary sharply across age demographics, dropping from 56.6 per cent among Bulgarians aged 25 to 34 to 9.5 per cent for those aged 65 to 74.p.14
6. The Southwestern region of Bulgaria saw internet banking adoption surge by 33.6 percentage points between 2019 and 2024.p.16
7. Digital-only banks in the Euro area sourced approximately 80 percent of their funding from retail deposits by the end of 2025.p.8