Eurobank outlines strategy for Cyprus banking landscape

Eurobank set out its strategy for the evolving banking environment in Cyprus during the 13th Banking, Payments and Fintech Forum and Expo in Nicosia, which took place earlier this week.

During its participation, the bank focused on three key pillars, namely digital transformation, consolidation, and international expansion .

The new banking landscape, shaped by accelerated digitalisation, enhanced customer experience and wider sector developments, was a central theme of the event, where Eurobank participated with what it described as a strong and upgraded presence.

Speaking at the forum, Chief Executive Officer Michalis Louis said the creation of Eurobank through the acquisition and merger of Hellenic Bank with Eurobank Cyprus “represents a milestone not only for the banking sector but for the Cypriot economy as a whole”.

“It is the largest investment ever made in the country, amounting to approximately €1.3 billion in cash, confirming the Eurobank Group’s confidence in Cyprus’ long-term prospects and creating one of the largest and strongest financial organisations on the island,” he said.

Louis stressed that this significant investment comes with a strong sense of responsibility, with priority placed on the smooth and effective integration of banking operations and the group’s four insurance companies.

“The constant objective is uninterrupted, immediate and high-quality customer service,” he added.

Referring to the ongoing consolidation of the banking system in Cyprus, Louis said this development aligns with the directions of the European Central Bank and is expected to continue into 2026 due to rising regulatory and supervisory requirements.

He also said geopolitical uncertainty presents both challenges and opportunities for Cyprus, which is emerging as an attractive destination for businesses and investors seeking a stable financial and institutional environment.

“At this point, the importance of a stable and predictable regulatory and tax framework for attracting quality foreign investment is critical,” he said.

Eurobank, he said, remains committed to supporting key sectors of the economy, including technology, communications, energy, trade, healthcare and the financing of households.

At the same time, the bank aims to attract international investment and strengthen Cyprus’ position as a gateway to the European market.

Within this framework, Eurobank plans to operate offices in markets with strong growth prospects, including Israel, Saudi Arabia, Abu Dhabi and India, which Louis said shares significant similarities with Cyprus in terms of business culture.

From a risk perspective, Joseph Antoniou highlighted the critical role of risk management in the digital era, with particular focus on risks arising from the use of artificial intelligence.

“Modern banks must balance the speed of digital transformation with strong governance, controls and model validation, so that innovation strengthens customer trust and turns risk into a strategic advantage,” he said.

Addressing operational matters, Chief Operating Officer Phivos Leontiou said banking operations have evolved into integrated business models due to rising transaction volumes and the need to support business growth.

“Key strategic pillars remain centralisation, human capital management, simplification and automation through technology, flexible organisational structures and the application of key performance indicators,” he said.