Filenews 7 June 2022 - by TheanoThiopoulou
Bank of Cyprus' plan to shrink its network is progressing at a full pace, with the aim of placing greater emphasis on e-banking and reducing operating expenses, with the closure of 15 branches and 15 ATMs.
As of July 4, 2022, 60 stores will remain in operation nationwide, down from 75 today and 86 in 2019. Already, Bank of Cyprus customers are informed through messages that their accounts are moved to another branch, in case the branch they are cooperating with will be closed.
According to information gathered by "F", 7 stores will be closed in Nicosia district, 5 in Larnaca / Famagusta district, 3 in Limassol / Paphos. In detail, the branches that the Bank of Cyprus is preparing to close by July 4th per district are:
Nicosia: Akaki, Arediou, Astromeritis, Agia Varvara, Dali, Lycabettus, Deftera
Larnaca/Famagusta: Mosfiloti, Agglisides, Deryneia, Makariou – Paralimni, Liopetri
Limassol/ Paphos: Misiaouli & Kavazoglou, Pissouri, Apostolou Pavlou, Paphos
39% reduction in stores
According to sources from the Bank of Cyprus, the digital transformation leads to a limitation of the branch network and a large part of the transactions are now done in alternative channels, with the aim of facilitating the customer, who can make his transactions from the comfort of his home or from his mobile phone, wherever he is. It is important that there has been a 39% decrease in transactions through branches of the Bank of Cyprus. As the numbers show, notes the Bank of Cyprus, "the transactions made in the branches that were decided to close are decreasing and decreasing, as our customers have become familiar with the alternative means". Specifically, in 2019, 724,000 transactions were made in stores, while in 2021 only 440,000 transactions were made, recording a decrease of 39%.
92.5% digitally
The adoption of digital products and services by Bank of Cyprus' customers is constantly increasing. According to the data, at the end of April 2022, 92.5% of the number of transactions involving deposits, cash withdrawals and transfers inside and outside the Bank of Cyprus were carried out through the digital channels. At the end of April 2022, active mobile banking app users and active QuickPay users increased by 22.3% and 40% respectively over the past 12 months. The highest number of QuickPay users so far was recorded in April 2022, with 138,000 active users.
Continuous upgrading
The Bank of Cyprus is trying to constantly upgrade itself. Very soon, sources from the bank say, the customer will be able to photograph his cheque and through 1bank to make an automatic deposit, without having to use an ATM or visit a branch. Also, it will soon be possible to manage fixed deposits (promissory notes) through a Mobile APP.
The ATM leaves, the cash back comes
Also, as we wrote last week, the Bank of Cyprus supports cash back, a service that will be assisted by card use service providers. Bank sources note to "F" that "customers will be able to receive cashback with their debit card during their visit to shops that will offer this service, without having to search for ATMs. That is, while they are at the grocery store / bakery / fruit shop of the neighbourhood for their shopping, at the petrol station, even at the local tavern, they will be able to request cash/cashback at the time of payment of their bill. In this way, the customer will be able to instantly secure cash, free of charge, through his debit card. Thus, there will be no dependence on ATMs, nor will physical presence in a store be required for cash access."
ATM maintenance costs
In recent years (2019 – 2022) the Bank of Cyprus has closed 5 ATMs. Today there are 156, in 2019 it was 161 and in July another 15 will close. According to the data given to "F", the yearly cost that the bank has for a machine (which it pays to partners) includes the cost of space, the maintenance cost and the cost of feedback. On average we are talking about €30,000 every year for each ATM, i.e.€2,500 per month. The cost does not include the staff time or the cost of repairing the machine.
64 stores and 179 ATMs in Hellenic
Hellenic Bank's plans do not include the closure of other branches before the end of the year. Hellenic has 64 stores in operation, which are distributed by district as follows: Nicosia 23, Limassol 16, Larnaca 11, Famagusta district 5, Paphos 9. As far as the ATMs of Hellinic are concerned, there are a total of 179 throughout Cyprus. The penetration of its customers in the digital service channels is also very important and increasing for the Greeks. The bank also intends to make the most of the cash back for its customers in the coming period, so that they can receive money from a large number of branches, bakeries, supermarkets and other points of sale.
