iBanFirst's research shows a tendency towards fintech solutions for hedging

As per the information detailed by iBanFirst, import-export companies operating in Eastern Europe are adopting fintech solutions for hedging, including forward contracts. On the other hand, Western firms continue to leverage the services offered by traditional providers. iBanFirst underlined that it has been experiencing significant growth in this region, where the total value of forward transactions by companies across Bulgaria, Romania, and Hungary scaled by 66% in the first ten months of 2024.

iBanFirst’s research comes after the company teamed up with SeedBlink to further support startup fundraising. The partnership intended to optimise fundraising for startup companies and their investors by delivering a specialised solution that ensures quicker onboarding and access to preferential foreign exchange rates. In addition, the collaboration was set to increase financial accessibility and transaction efficiency for growing startups.

iBanFirst’s findings

By leveraging these risk management tools, companies can lock in exchange rates for upcoming international transactions, which in turn offers cost predictability and protection for profit margins. When commenting on the report’s findings, iBanFirst’s officials mentioned that, with the CEE fintech market entering a phase of increasing adoption, the company has been witnessing a shift in how businesses approach international trade and risk management. This move can be seen across sectors, with both large corporations and small and medium-sized enterprises (SMEs), as well as risk-averse businesses, implementing digital tools to simplify operations and be more competitive in the market.

Furthermore, as currency fluctuations represent a substantial concern for importers and exporters across Eastern Europe, hedging solutions delivered by fintech companies can support firms in remaining competitive in the market, especially in managing non-euro payments. When it comes to specific markets, Bulgarian companies demonstrate a commitment to long-term financial stability, while in Hungary rapid increase in forward transaction volumes underlines a scaling interest in fintech-assisted risk management. At the same time, Romania shows consistently high transaction volumes, reflecting demand for multi-currency solutions.