We help businesses to grow responsibly

Mrs. Kobakova, this year ING Bank celebrates 30 years in Bulgaria. How has the Bulgarian banking sector and your bank in particular changed during this period?

ING Bank is one of the first international banks with  presence on the Bulgarian market since 1994, and I am proud that we have been part of the development of the corporate banking sector in Bulgaria for 30 years now. Over the past 30 years, the sector has undergone a significant transformation - from lending and offering banking products to structuring individual financing solutions according to the business needs. These changes have led to greater competition, technological development and a much more stable environment defined by  true partnerships between businesses and banks.

I believe that there are 3 main factors that have contributed to this transformation – diversification, technological  advancements and regulatory changes. New local and international players entered the Bulgarian market which led to greater competition and a wider range of financial solutions for the business sector. Nowadays, banks are more efficient, much more transparent, and banking services have become much more accessible. The introduction of mobile banking and digital payment capabilities has transformed the way customers interact with banks. Meanwhile, the banking sector  became one of the most regulated sectors in the world. Over the past 30 years, we have witnessed significant regulatory changes that have ensured a stable banking environment and improved risk management practices.

What sets ING Bank apart on the Bulgarian banking market?

ING Bank is a global financial institution and a sustainability leader. At ING, we are not like other banks. We are different. We have defined nine  key beliefs about our clients’ needs that are based on long-term relationships and trust, expertise, seamless customer experience, global network and presence in 40 countries, providing digital and high-quality solutions. At ING, we aim to offer a sustainable version of every product in our portfolio. Sustainability-linked finance  where  rates are tied to a client's sustainability performance was created by ING back in 2017, structuring and coordinating the first-ever sustainability-linked loan on the market as well as the first ever syndicated loan linked to ESG targets on the Bulgarian market in 2023.

I am proud of our excellent banking team in Bulgaria, well known in the market for their expertise and dedication to our clients. Thanks to our deep knowledge spanning across seven sectors and 29 sub-sectors, we know how to help clients navigate the highs and lows of the economic cycles.

Last but not least, is our commitment to invest in society. There are many meaningful social causes in Bulgaria that deserve our support and I am proud that all our employees recognize social entrepreneurship as a cause, and an active tool for dealing with social problems and the challenges society faces.

What prompted ING Bank to become an advocate of green business?

As a bank, we make the biggest impact through the financing and the solutions we offer our clients. This includes our unique Terra approach. It is a methodology covering nine of the most carbon-intensive sectors in our loan portfolio towards global climate goals. The aim is to measure and steer our entire global-level loan portfolio towards limiting the increase in the average global temperature to a maximum of 1.5 degrees Celsius by 2050. Throughout 2023, ING Bank has mobilized €115 billion in sustainable financing.

ING Bank Bulgaria contributes significantly to the global goals of mobilizing €125 billion of sustainable financinge yearly until 2025. We see this as an opportunity to apply our substantial experience on the way to creating a net zero world, by supporting our clients’ transition.

How would you describe the clients of ING Bank Bulgaria? Do they take sustainability to heart?

In Bulgaria, there are many subsidiaries of large international financial and institutional companies that have been working with ING Bank for many years now, and the majority of these companies already have clear goals related to the environment and social and corporate governance.  Furthermore, we conduct a strategic dialogue with our Bulgarian clients to support and finance their transition to a more sustainable business - with ESG topics increasingly becoming a top priority for the business. Companies set themselves clear and ambitious goals that they want to achieve – investing in innovation and new technologies, encouraging their employees to reduce their own carbon footprint, and making remarkable progress.

We're not just environmental thought leaders, we actually work hand-in-hand with our customers to tackle some of the most pressing issues in the world today.

Last year, ING Bank received two international awards. Which part of your work did they honour?

ING Bank overall and in Bulgaria, strives to be an example for our clients and society in terms of our responsibility towards the environment, social equality, and corporate governance. We invest significant resources in raising awareness about sustainability. We involve our employees in Bulgaria to act as true ambassadors of responsible banking. In line with our global group goal for the bank's loan portfolio to achieve net zero by 2050, in Bulgaria we direct significant assets to sustainable projects - and this will continue to be our focus.

ING Bank is a visionary in developing innovative and sustainable solutions that meet the needs of our clients. We are happy that our efforts have been appreciated by companies, European organizations, and partners such as the World Bank, which honored us with two awards  in 2023.

How important are employees for the operations of your bank?

I have been working at ING Bank for more than 15 years now and, for me, our team has always come first. Creating and successfully leading a team is a mission. It requires full dedication, open communication,  true self-assessment of strengths and weaknesses and a constant desire to excel. When employees work in a team and  collaborate with each other, they are happier and much more effective, and for me as a leader it is extremely important to support teamwork as part of the work ethic and culture. Each of our employees should feel that they are contributing to the Bank's future plans and goals, and I truly believe and work for ING Bank to continue to be a great place for career development thanks to our high standards of work and opportunities for continuous improvement for each employee. I have always strived to be part of a strong team where people support each other, look in one direction, have  a common mission and ambitious goals, and stay resilient in difficult times.

Following the rise in corporate interest rates last year, which way do you expect them to go now, and do you envisage  a weaker demand for loans?

I expect the terms of  corporate loans to remain stable with customer demand to slightly increase with positive activity. This year I  predict a smooth rise in interest rates in Bulgaria in line  with the European trends. The banking  system is well capitalized and highly liquid, and the country’s economy foresees a positive growth in 2024. The policy of the Bulgarian National Bank (BNB) featuring increased capital requirements for banks and minimum reserve requirement  likewise   contributes to the stability of the system.

In this and the following years, I predict a smooth rise in interest rates and relatively high inflation. The only thing left is for inflation to decrease, which would then  lead to lower interest rates.

Are banks ready for the possible entry of Bulgaria into the Eurozone? Are there any shortcomings in the preparation process and is the target date of 1 January 2025 realistic?

Bulgaria's accession to the Eurozone from 1 January 2025 is a realistic goal and has broad support. I believe that the banking sector is prepared for this, thanks to a healthy banking system, good capitalization, and high liquidity. To a large extent, the  Bulgarian banking sector is already part of the Eurozone due to the fact that our country has been a member of the European Banking Union for several years now. In a  few weeks, BNB will start minting the first prototype Bulgarian euro coins. Legislatively, we are ready for the adoption of the euro, although political stability in Bulgaria will also be essential. Among the anticipated benefits are the credit rating of the country to improve, interest rates on loans and transaction fees to decrease – and in the long term, a boost in foreign investor confidence towards Bulgaria. Bulgaria still does not meet the criteria for inflation however I think we have already passed the peak of inflation and it is already seen as decelerating

What’s next for banking in Bulgaria - will digitalization and ESG become the drivers and what new products and services will appear?

Digitalization in the banking sector is a necessity and an opportunity for sustainable change. I consider it an opportunity to improve processes - both internally for the bank and for our customers. High technology has revolutionized the financial world in recent years. Banks did not stay away from this trend and their customers now have higher expectations in that regard. ING Bank is the undisputed leader when it comes to digitalization and innovation. We strive to provide seamless, real-time digital services to our customers from the very start of their customer journey with ING. Examples of this are our digital account opening services, the Know Your Customer process, Robotics process automation, as well as the continuous exchange of documents done entirely online within the secure environment of our interactive InsideBusiness channel.

When it comes to ESG, we continue to invest in new banking solutions for our clients. We are building AI-based algorithms and innovations aiming to enable faster and more effective decision-making. Moreover, we use science-based and sector-agreed pathways for getting our in-scope sector portfolios in sync with reaching net zero by 2050 and aiming to accelerate the transition.

What qualities do you think the bank manager and banker of the future will need?

We are facing a new reality. With increasing automation of work processes, the banker of the future will need qualities such as flexibility, creativity, a good eye for the different daily dynamics, and the skills to prepare and offer an individual strategy tailored to the needs of each client. He  should be a team player and a visionary. I believe it is extremely important to create a positive attitude towards lifelong learning and desire for constant improvement and skill development. In this regard, I’d like to recommend one of the most inspiring books I have recently read - "Mindset: The New Psychology of Success”, written by the renowned American psychologist and Stanford University professor Carol S. Dweck. According to her, a change in one’s beliefs can lead to a major transformation in life as well. 

The numbers speak

• 30 years – the operating presence of ING Bank N.V. in Bulgaria, established through its branch in Sofia in 1994
• BGN 19.1 million is the net profit for 2023
• BGN 905 million is the gross loan portfolio as of 31 December 2023
• BGN 587 million are the sustainable volumes mobilized by ING Bank Bulgaria to sustainable projects for 2023, including the first-ever sustainability syndicated loan on the local market, structured and coordinated by ING Bank with interest rate linked to the client's ESG goals

Company profile

ING Bank is a global financial institution of Dutch origin and among the first international banks with established presence in Bulgaria since 1994. It provides a full range of products and services for its corporate and institutional clients. It combines local market expertise with the capabilities of a global financial institution. Sustainability forms an integral part of ING’s strategy by helping clients to transition towards a more sustainable business model.

In 2023, the bank received two awards from Capital Finance International for Best Sustainable Banking Solutions Bank in 2023, as well as from Global Banking and Finance Review for Best Bank for Sustainable Development Bulgaria 2023.