iBanFirst Analysis: Eastern European Import-export Companies Move to Fintechs for FX Hedging Solutions Faster Than Their Western Counterparts

Eastern European import-export companies are increasingly adopting fintech solutions for hedging, such as forward contracts, while their Western counterparts continue to rely on traditional providers. iBanFirst, a leader in foreign exchange and payment solutions, is experiencing strong growth in this region, where the total value of forward transactions by companies in Bulgaria, Romania, and Hungary grew by 66% in the first ten months of 2024, reaching €341 million, compared to the same period last year. By contrast, the Group’s overall growth rate was 27%, with forward transactions totaling €1.7 billion.

These risk management tools enable companies to lock in exchange rates for future international transactions, providing greater cost predictability and protecting profit margins.  During the same period, the total value of foreign exchange transactions in the region increased by 90%, from €1.1 billion to over €2.1 billion. 

“As the CEE fintech market enters a phase of growing adoption, we are seeing a major shift in how businesses approach international trade and risk management. This shift is apparent across sectors, as both large corporations and SMEs, even risk-averse businesses, embrace digital tools to streamline operations and gain a competitive edge. At iBanFirst, we are proud to support them in this transformative journey”, said Johan Gabriels, Regional Manager for Central and Eastern Europe at iBanFirst.

Exposure to currency fluctuations is a major concern for importers and exporters across the region. Hedging solutions provided by fintechs are helping companies stay competitive globally, especially in managing non-euro payments given the diversity of currencies, with the support of digital solutions.

In markets like Bulgaria, where the average value of forward transactions on iBanFirst is the highest in Europe, companies are demonstrating a strong commitment to long-term financial stability. Similarly, in Hungary, rapid growth in forward transaction volumes signals a growing interest in fintech-driven risk management, while Romania’s consistently high transaction volumes reflect steady demand for multi-currency solutions.

Top currencies used by CEE companies for international payments

CEE companies using iBanFirst need a variety of currencies for their international payments. While the US dollar and euro remain the most common, businesses in Bulgaria, Romania and Hungary also transact in regional currencies and more exotic ones such as Chinese yuan (CNY) and South African rand (ZAR). 

This variety of currencies indicates a regional drive to expand into global markets beyond the European Union. With CEE businesses leveraging digital platforms for cost-efficient and trustworthy currency management, fintech has proven to be key in supporting this diverse trade network, including niche markets.