Galya Dimitrova: Inside the Mind of the Woman Changing Bulgaria's Fintech Landscape

Born in Bulgaria and raised near the breathtaking Black Sea coast, Galya Dimitrova's tale is as rich as the nation she hails from. A graduate in the practical field of Finance and Accounting, Galya’s ascent through the financial world is one of diligent work and strategic decisions.

Her impressive résumé reads like a "who's who" of prominent banking institutions in the region. With CEO stints and board memberships at Allianz Bank, Credit Agricole, and Commercial Bank Victoria, one might imagine her journey's destination was already mapped out. However, in 2018, after two decades of dedicated service in the banking sector, Galya pivoted. Co-founding a fintech startup with partners, IRIS Solutions, she entered an innovative field that was still a frontier in Bulgaria.

While her choice paid off, it was one made out of passion. "I chose the fintech industry because it allows me to develop expertise in a specific area, it is specialized, quickly adapts to the constantly changing environment, and never loses focus on the customer."

Today, she stands as a Managing Partner and co-founder of a company leading the charge of open banking in Southeast Europe. IRIS Solutions is pioneering an accessible and secure digital environment for sharing financial data and offering payment solutions based on open banking, having integrated over 60 banks and financial institutions in the Central and Eastern European (CEE) region.

"The future is in data," Galya declares. Open Banking, she posits, is the initial step towards Open Finance, a concept that transcends mere catalogues of financial products and shifts into creating individualized experiences for each customer. Her vision for the future doesn't just offer products; it crafts them, personalizing financial services to meet specific needs. "This is the mission of Open Banking," she affirms, echoing the innovative spirit that's marked her career.

Galya serves as a Board Member of the Bulgarian Fintech Association, passionately advocating for an industry ready to revolutionize the way we understand and interact with finance. Here, her approach to leadership is marked by a distinctive ethos of open communication, one that cultivates trust within a burgeoning ecosystem.

The open and transparent dialogue, she underscores, has been vital in promoting common business models and practices. It's a mission, she says, about "the human element, this time around on a bigger scale—the ecosystem."

It's a philosophy Galya carries into her approach to business planning and management consulting. With over 50 companies served in Southeast Europe through IRIS Solutions, the focus on trust and customer experience is central. Galya explains, "With Open Banking, there is no need to become a client of the new financial institution." Through a single API, the company provides a seamless interface to multiple banks, enabling a new level of accessibility for innovative financial products.

But Galya's evolution from a traditional retail banker to a pioneering advocate for fintech isn't merely about staying ahead of trends. It's about understanding a digital generation's needs, realising that in a world advancing with AI and increasing digital integration, the future is about "convenience and speed."

This broad view extends to her involvement with the Bulgarian Fintech Association's wide array of initiatives, including open events for collaboration, extensive regulatory work with national and European authorities, and an enduring focus on Fintech education. With four Master’s degree programs launched and an array of youth-focused initiatives, Galya affirms, "We do believe kids are our future and we work for it."

It's this belief in a future – be it the future of Bulgaria's youth or the future of Open Banking – that permeates Galya every endeavor. Whether co-founding the European Digital Finance Association to make Bulgaria's voice heard on EU regulations or innovatively crafting personalized financial experiences, her vision is clear. For Galya, financial innovation isn't a sprint; it's a marathon, a long game where success is built on transparency, trust, and a firm belief in the human element.

With a track record that spans traditional banking, digital transformation, and now leading the charge in Open Banking, Galya's story is emblematic of a financial landscape in flux. Her voice, steady and sure, seems to echo the pulse of a nation on the brink of a financial revolution, guided by a woman whose insight, dedication, and innovative spirit is shaping Bulgaria's future, one open API at a time.

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The Bulgarian Fintech Association serves as a platform for uniting various stakeholders in the space of financial technologies. How do you ensure that the Association effectively represents the shared values of its members, particularly when dealing with regulators, investors and foreign associations?

From the very beginning, the Association was set as a communication platform between Fintech key stakeholders in our region. Since then, we have been preaching for our common business models, practices and goals.

It’s all about maintaining open and transparent communication between the players in the Fintech ecosystem. So far, we’ve managed to do it—and we experience countless benefits. It’s once again the human element, this time around on a bigger scale—the ecosystem.

With an impressive career in the Bulgarian banking sector, you’ve witnessed the development of the industry over the years. What motivated you to move from traditional banking to focus on digital transformation and financial technology adoption?

I define myself as a retail banker, and I love retail banking, developing and offering financial products that are designed for the mass customer. In my opinion, in the digital age and with the advancement of AI, customers will completely transit to the digital world.

The younger, more digitally-oriented generation prefers convenience and speed when conducting financial transactions. To meet these new customer demands, banks need a strong digital presence and integration of financial technology.

‍As you are well acquainted with business planning and management consulting, how do you approach guiding your clients through the path of digital transformation?
Today, customers are bombarded with numerous offers, applications, and deals from banks, non-bank institutions, electronic money institutions, and credit institutions. The main obstacle in making a decision on whether to try one service or another is trust. People need to open a new account for every new financial institution. This is where the advantages of Open Banking come into play.

With Open Banking, there’s no need to become a client of the new financial institution. Instead, through Open Banking, everybody can onboard any existing bank payment account within the financial service provider's environment. Through a single API, we provide access to accounts from over 60 banks in the markets where we operate (Bulgaria, Romania, Greece, Cyprus, Croatia, Malta). Our payment initiation products, such as Pay by bank, Pay by click, Pay by link, and Pay by QR code, create a solid foundation for rapid growth of A2A (Account-to-Account) payments across all digital channels.

IRIS Solutions offers a new infrastructure layer of data and products that serve the ecosystem of innovative companies in the fields of e-commerce, accounting, loyalty programs, lending, personal finance management, and more. We currently serve more than 50  companies in Southeast Europe, which offer next-generation financial products based on Open Banking principles.

As a member of the Executive Board of the Bulgarian Fintech Association, what are the main initiatives the Association has undertaken to promote innovations in the financial sector? How do you collaborate with other fintech associations worldwide to exchange ideas and best practices?
It’s difficult to put it in a few sentences, but it starts with our open events where we raise discussions for potential collaboration on different topics and eventually players from the ecosystem gather and start talking business.

Secondly, its regulatory work on both national and supra-national levels (the European Union). Locally, we work extensively with the Ministry of Finance of the Republic of Bulgaria, the regulators – Bulgarian National Bank and Financial Supervision Commission, but also the Ministry of Education and Science of the Republic of Bulgaria, etc.

When it comes to the European level, a couple of years ago we co-founded the European Digital Finance Association where, with more than 13 other EU countries, we make our voice heard on EU regulations and directives such as PSD-3, MiCA, e-ID, etc.

Thirdly, it’s a long game but we take pride that we work on it—fintech education. This year we’re launching four Master’s degree programmes, where we teach subjects ranging from fintech, insurtech, e-banking, and greentech.

Additionally, on an annual basis, we run a Fintech Hackathon, we pay visits to local high schools, we offer internship programs and scholarships to the brightest young mids, etc. We do believe kids are our future and we work for it.  

This is by no means an exhaustive list of how we promote innovation in the financial sector, but it is to present that we understand that financial innovation is a marathon rather than a sprint.

In your opinion, what are the main barriers that financial institutions face when adopting Open banking, and how can they overcome these challenges to fully harness the potential of this new paradigm?  

In Europe, Open banking started after the adoption of PSD2. In other words, the financial world in Europe accepted PSD2 as a regulation, implemented it to comply with the requirements, and many of the financial institutions did not see and didn't know the possibilities, how to make a business out of it.

There are over 500 registered TPPs in Europe, each developing Open Banking applications. I think that the first stage of formation and knowledge of use cases is already a fact. But we don't stop there.

On June 28th, 2023 The European Commission presented its proposal for the new payment directive PSD3. The legislative act is based on two years of consultation and research among all participants in the payment business.

The IRIS Solutions team has been involved in this process and is pleased to see that many of the suggestions made by the European Digital Finance Association working group on Open banking have been reflected. No one in Europe is thinking about whether Open banking has a future anymore, but looking directly at an economy based on Open Data.

‍As an industry leader, what advice would you give to aspiring professionals who want to make a mark in the Fintech sector and contribute to the digital transformation of the financial services industry?

• Use the power of Open banking to extract valuable information, predict trends and deliver personalised services to your customers.
• Always keep the customer in your focus.
• Take a long-term view of the industry.
• Collaborate with regulators to ensure regulatory compliance and ensure the sustainability and legitimacy of your decisions.
• Actively participate in the fintech community, share knowledge and experience, collaborate with others, create valuable partnerships.
• Protect your customers' personal and financial data with state-of-the-art cybersecurity technologies.
• Do not neglect social responsibility, let it always be integrated in your strategy.

Women often doubt their abilities despite their achievements. Have you faced imposter syndrome in your career and what advice would you give other women to overcome it?

I don't divide people into men and women but into capable and less hardworking individuals. My career is not due to being a woman; it's the result of my diligence, experience, and being a dreamer. In the Fintech community, I meet many young women with fantastic ideas who inspire and leave many people behind with their enthusiasm to bring those ideas to life together. In my opinion, finding the right team that supports your idea and working together despite all obstacles is the key to success. With IRIS Solutions, that's exactly what happened – we gathered like-minded individuals, found business angels who believed we were on the right path, and the results are evident. IRIS Solutions has become a trusted partner for Open Banking in Southeast Europe.

Sensitivity, perseverance, patience, the ability to persuade and argue your views, and optimism are not character traits exclusive to women in business. But their presence certainly helps.

If you could give one piece of advice to young women aspiring to break into the Fintech sector or any male-dominated industry, what would it be?

Keep dreaming. Surround yourself with people who are on the same frequency of vibrations as you. Believe in your team and set high goals. When it's tough, don't give up. Indeed, never give up on your dreams. And these are pieces of advice not only for ladies in the fintech community but for every young woman who wants to succeed.

Images courtesy of: Galya Dimitrova