- The merger by azquisition of Unionbank in First Investment Bank is over. What’s next?
- Vasil Hristov: Yes, it is already a fact. On March 4th this year, the merger by acquisition of Unionbank in First Investment Bank (Fibank) was entered in the Commercial Register. In this way, all rights and obligations of Unionbank were transferred to Fibank as universal successor. On the same date, March 4th, was also successfully completed the procedure for the information and technical unification of the two banks. After the merger by acquisition the assets of Fibank are already in the amount of 8.9 billion BGN and the capital adequacy is over 14.3%. With the merger by acquisition of Unionbank in Fibank, we now offer our services in even greater branch network - more than 200 branches throughout the country that will serve more than 1.5 million customers. From now onwards, we have to work harder. We will make every effort to increase the efficiency and hence the competitive prices for our customers. That is our strategy. We have fulfilled our objectives for growth and we expanded enough. We are proud of our achievements and the place we take in the banking system.

- Are you going to offer new products?
- Vasil Hristov: One of the benefits after the merger by acquisition is that under the same roof we shall now offer the best of both institutions and an even wider range of products with a focus primarily in lending to small and medium enterprises. There will be also a lot of new and interesting offers for individuals. Soon we shall present a new conceptual form of service of individuals which does not exist in Bulgaria until now. It will be flexible and adaptable, satisfying the personal needs of each client. The customers will be allowed to choose themselves the products which best suit their needs, at the best price and will not pay anything unnecessary. "My bank" will become a friendly environment for financial communication for our customers.

- Svetoslav Moldovanski: We will make our products more customized. The customer himself will choose and design the product he wants to meet as much as possible his requirements. A similar approach is proposed in the automotive industry - there is an opportunity to get the car you want with the necessary equipment. For example, for the loans there will be a base model and to this base model the customer will be able to add what he needs according to his specific needs at the particular moment. We shall offer first this individual approach for the individuals. For the small and medium-sized enterprises we shall launch an entirely new concept for package products. We shall go again for "Choose for yourself" direction. The date of the merger by acquisition was the premiere of our new and improved system for customer service. This is the first phase of a large project where we introduce a unified system of customer service. We will use all channels of customer contact: our branches, devices of "kiosks" type, a mobile channel, electronic and telephone banking. Upon entering the banking hall with a single keypress our officer will know what products the customer uses, what the customer needs and shall give him the most favorable conditions.

- What are the main benefits of the merger by acquisition?

- Vasil Hristov: The main direct effect of the merger will be increasing the efficiency of the bank by optimizing the resources available to the already expanded institution. This process is called in the books "economies of scale" and all transactions where several companies are merged or, as it is in the case two banks, must go through this. This is done for the benefit of customers, because it leads to reducing the cost of the products and services used by them as a result of which they will receive them at more favorable conditions. There are many other advantages, some of them are: increasing the market share where many more customers will be able to access our services, and also managed growth with low risk leading to more competitive conditions for citizens and the business. Fibank, of course, will continue with its established policy of corporate social responsibility for the benefit of society, because we are socially responsible Bulgarian financial institution.

- Are you going to optimize staff and branch network?
- Svetoslav Moldovanski: Over the years we have invested huge amounts of funds in the development of new technologies, innovation, infrastructure and personnel. We created a strong management potential. We developed an efficient branch network. We worked to improve ourselves and increase our market share, and we were ready for the process of bank consolidation. Now the merger allows us to strengthen the unused potential and the capacity of the resources at our disposal without the need for additional investment in new technologies and a large increase in staff. We will rely on the most talented employees from both banks, but there will be employees that we have to separate with. We shall take the best of the successful practices of both institutions and we will offer it to our clients.
- Vasil Hristov: In many places after the merger there overlapping branches. We plan to optimize their number. This is part of the path we are going to pass to increase efficiency and realize economies of scale, which is the desired effect of the deal. We'll keep the best performing branches of the two banks that are preferred by our customers. It is important to know that the process for optimization of our branch network will improve the quality of service and the convenience for our customers.
- Svetoslav Moldovanski: Our biggest success of the merger is that no gaps were allowed in the technological process, which can affect the quality of customer service. The merger was successful.
- Vasil Hristov: I want to say that such a merger has not been done anywhere for a period of less than six months, which we have achieved. I would like to use this opportunity from 24 hours newspaper to thank all our employees who participated in this process. I would like to thank them very much and for their efforts that we value. I am proud to say that we have some of the best trained staff in the country and we are proud of them.

- The products and the conditions shall remain the same for customers of Unionbank, right?
- Svetoslav Moldovanski: Yes. We are often asked this question. According to the conditions of the deal we had the right to terminate existing contracts with the customers of Unionbank, but we made the impossible to keep the conditions that they had with Unionbank.
- Vasil Hristov: With the merger of the two banks, which had different products and technological solutions, it is possible that some customers remained unsatisfied. We offer our sincere apologies, if they felt uncomfortable with something. We are ready to look at each case individually and to offer them suitable solutions and products. I want also to share my professional satisfaction of the letters we have been receiving from customers of Unionbank in which they greet us for the organization of the process of the merger by acquisition and for the customer service they have received from Fibank. In many of these letters the customers mentioned they were previously not aware of the possibilities offered by Bulgarian banks.

- Who can contact the customers of Unionbank?
- Vasil Hristov: Before the merger we created a website where all customers can find answers to their questions about bank accounts, products, services and what will happen to them after the merger (http://www.fibank.bg/ubFibank) . Our customers can also contact a 24-hour card contact center that is open 7 days a week. Of course, customers can get complete information at any bank branch for all matters that concern them. Until 30th April 2014, Unionbank customers can use their existing current accounts and debit cards. This is quite a long period of comfort in which our customers safely and smoothly will switch to their new accounts and debit cards.
- Svetoslav Moldovanski: We have made efforts so that customers of Unionbank can operate with their old and with the new accounts by First Investment Bank. We have already begun the process of re-issuance of the cards. The customers abroad will receive them at our expense. The contracts for already granted loans will not be re-signed.

- Will the consolidation of the Bulgarian banking sector continue?
- Vasil Hristov: The consolidation of banks always leads to strengthening of the capital base and the stability of the banking system as a whole. The processes in the world and in Europe are towards globalization and consolidation. Bulgaria cannot stay away from this trend. First Investment Bank is once again a pioneer in the process of consolidation and acquisition in the last decade. We are a Bulgarian bank and we have knowledge of our market and its specific needs. Our products and services are made by Bulgarians for Bulgarians and the results of that are visible. This gives us confidence that we talk the same language with our customers and we can successfully manage a larger business than that we have built by now.