- Mr. Georgadze, what is the platform Saving Global?
- This is a platform for private clients who want to invest their money in deposit outside the country where they live. So far we offer this service only to the residents of Germany. Early next year, we plan to expand our services so they can be accessible to all European citizens. Thus, a Bulgarian or an Irish citizen will be able to open a savings account in another European country. In short, it is a cross-border platform for deposits of European customers.

- How a Bulgarian bank or a bank from another European country can join the platform?
- The banks that are included in the platform usually conclude an agreement with Saving Global and with the German bank MHB-Bank, which is our partner. The Frankfurt-based financial institution shall take the appropriate actions to identify the customers in Germany. The banks outside Germany that are included in the platform, also take the necessary steps on their part. For example, Fibank shall accept new customers after additional investigation and shall open their accounts in Bulgaria. Then the money is transferred to the individual accounts in Bulgaria by MHB-Bank. The whole process involves two banks - the German, which is our partner and the foreign bank. The accession of a new bank usually takes about three months. In most cases, however, the whole process takes a little longer - about five months. In addition to the preparation of the transactions the banks must notify regulatory authorities and obtain permission for such cross-border activity. For example, Fibank has notified regulatory authorities in Bulgaria and Germany. The Bulgarian bank successfully passed the process of obtaining permission from the German regulator Bafin.

- How do you think the placement of CCB under special supervision will affect your clients?
- This situation can happen in any European country. I do not think that will have an impact on our customers. First, CCB and Fibank are quite different in terms of stability, credit rating and the way they stand in the market. Currently, there is no risk of crisis in Fibank. Second, the Bulgarian authorities reacted very accurately and on time and CCB is currently under special supervision. Statements were made that they are thinking about nationalization of assets. It should be borne in mind that Bulgaria has one of the lowest ratios of debt to GDP in Europe and can adequately react in such a situation. And finally, we must not forget that there were banking crises in more developed countries like the Netherlands, the UK and Germany. For example, people in Germany now have extensive experience with nationalization of banks. In that particular situation it should be taken into account that Fibank is not affected by this case. There is nothing unusual about a bank to run into a liquidity crisis. I guess this will be a single case because there are no signs of a systemic crisis.

- Which other banks in Europe participate in your platform?
- Currently there are three banks, but their number will increase. So far these are the Bulgarian Fibank and the Norwegian BN Bank. The third bank in the platform is the second largest Portuguese bank Banco Espirito Santo (BES).

- What are the interest rates of Fibank compared to other banks in your platform?
- The interest rates on deposits in EUR in Bulgaria are the highest in the European Union. Accordingly, the interest rates that Fibank offers are higher than the other financial institutions. Regarding the Bulgarian market are lower than the levels that offer many banks for Bulgarian customers.

- What are the customers who use your platform? Are they satisfied with the products and services offered? - Our clients are very satisfied. The platform was launched six months ago and now we already have several thousand customers. For now we get positive feedback from them and there are no complaints. Our services receive an average of 5.7 out of total 6 points in BankingCheck, the biggest German portal for feedback. Over the next month, we plan to join to the platform a large Polish bank, banks from Italy, Lithuania and the UK. So during the summer and till the beginning of the autumn to the platform will join 5-7 new banks.

- What is the profile of your customers?
- Usually, the customers are middle-aged about 56 years. They are a little older than the usual online users. Furthermore, our customers are more affluent and better educated. Our services are used more often by men than by women. Most customers are from southern Germany or from the big cities like Berlin.

- What are the trends in terms of interest rates in Europe now?
- Interest rates in Europe continue to fall, after they remained a long time at high levels. At the same time, interest rates are very different in different countries. In Germany customers can get the most 1.5% interest rate on a one-year deposit. In the Netherlands, however, customers receive interest rates by about 0.4% - 0.5% higher than those in Germany. In Ireland, the interest rates are about 1% higher. Levels in Bulgaria are also quite high. The highest yield on deposits is in Bulgaria, Italy, Malta, Ireland and Portugal. The yield is lowest in Germany, Finland, Spain and the Baltics. Indeed, interest rates are quite different in the different European countries, because the banking market is not integrated. For consumers, it is quite normal to order from Amazon or to organize a trip through online European tour operator. In banking, however, you still need to visit a bank branch in the country in which you live. The market for banking services in Europe should be integrated. This will have a good effect for both the financial institutions and the customers. Clients will receive more favorable interest rates, better terms and more choices. Banks will be able to raise capital from other countries. This in turn will make them less volatile (i.e. – a change of the price of the security, which is expressed as a percentage. The higher the volatility, the more risky the investment.)

BUSINESS CARD Tomaz Georgadze was a partner at the international consulting firm McKinsey&Co. He has nearly 10 years of experience in the banking sector. He is a Ph.D. in Economics at the University of Giessen. Presently he is Executive Director of Saving Global