On October 13, at the Four Seasons in Limassol, the first Forbes Cyprus Next Generation Banking & Fintech Summit will be organized, opening a discussion that will not only be about the future of banks, but also how Cyprus can claim a more meaningful role in this new shift in services.
Of course, the changes have already begun and the Cypriot financial sector in Cyprus has proven that it can quickly adopt new banking technologies. However, the biggest question for our island, its companies and its citizens may sound simple, but it is at the same time extremely complex: "Can Cyprus move from adopting these technologies to creating them?".
According to the distinguished professor Costas Markides, of the London Business School, who will also be the keynote speaker of the conference, Cyprus can. This, at least, he explains, among other things, in an interview with Forbes Cyprus, which will be published on Sunday, October 4.
After all, this is exactly what will be discussed in the first panel of the conference, entitled "How a small island wins", which touches the heart of both the question and the Cypriot bet: "What does a small country need to be able to compete in an international market?".
As Mr. Markides explains, Cyprus can become competitive in this area and it is possible to succeed, with the prerequisite, however, that the right foundations and prospects are laid from the beginning, but also that the right assessment is made of where and how the state can move.
The professor notes, among other things, that Cyprus cannot win in everything, either because of its size or because of the large investments required. What it can do, however, is focus on specific areas of these changes and develop meaningful advantages where it has the potential, such as payments, wealth management, shipping, and even the use of AI.
A prerequisite, of course, for all this, as he explains, is to follow a national strategy, with the government, the competent authorities, universities, banks and entrepreneurs agreeing on the priorities on which they will jointly focus and consistently following them for the coming years.
The banking of tomorrow is here
The bank that the customer knew a few years ago has already changed form. The shops, the queues, and the transactions that required you to arrive at the checkout to process are now largely a thing of the past. Now, everything is on your mobile phone or computer and tablet. Payments are completed in seconds, loan requests are answered within a few hours, and artificial intelligence systems evaluate you, serve you and prevent scammers from emptying your digital wallet.
The Director of the Digital Transformation Division of the Bank of Cyprus, Demetris Nicolaou, in a major interview with Forbes Cyprus, talks about the rapid transition of the Cypriot banking ecosystem from digital banking to AI banking and in particular about the Bank of Cyprus, he explains how the use of Agentic AI and Microsoft Azure AI services is changing the relationship with consumers. A relevant excerpt of the interview is published in today's edition of "F" (page 47), while the full text will be published in Forbes on 4/10.
Cooperation with Fintech
These changes did not come out of nowhere. First, the banks themselves had to find a way to overcome obstacles, adopt new technologies and find solutions to problems that did not exist before.
It is precisely in this equation that Fintech companies come in, which it would not be an exaggeration to say that they have turned from competitors of banks into partners, since the former develop the systems, provide the infrastructure and technology and the latter rely on all this to serve and protect their customer.
Of course, one could say that these mainly concern other banks abroad, however, the data show that in Cyprus these changes are even more noticeable and have been adopted by both banks and citizens.
So according to the data, in Cyprus we have a trio of important changes. First, almost all transactions are done outside the cash registers, second, a reduction in ATMs and third, the closure of several bank branches.
The numbers are characteristic.
The data of the Central Bank
Based on the most recent data released by the Central Bank of Cyprus, the transition towards digital payments is now clear. In the second half of 2025, 174 million non-cash transactions were carried out in Cyprus, up 8% year-on-year, with a total value of €148 billion, with card payments accounting for 75% of the total number of non-cash transactions, the highest in the euro area.
At the same time, the ATM network was reduced to 396 at the end of 2025, from 398 a year earlier, while overall their number has decreased by about 13% in five years.
The same trend is reflected in the physical network of banks, since in a CBC study published in March 2026, the number of bank branches had decreased in 2024 to 19.4 per 100,000 inhabitants, from 137.3 per 100,000 inhabitants in 2002, with the Central Bank linking this development to the shift to digital banking, the reduction of operating costs and the centralisation of the network.
An important element is also the CBC's reference to a study by the European Central Bank showing that Cyprus recorded the largest decrease in the share of cash transactions at points of sale (POS) among euro area countries during the period 2022-2024. This development, as reported by the CBC itself, reflects the ongoing shift in consumer behaviour towards digital means of payment and highlights the growing preference for electronic payments for everyday transactions.
In fact, Cyprus seems to hold another first, since it is in the highest position in the euro area in card use as a percentage of the total transaction volume (non-cash), while at the same time, according to the Central Bank, Cyprus maintains a leading position in terms of contactless payment infrastructure, with more than 73% of domestic ATMs supporting contactless transactions, This is significantly higher than the euro area average of 38%.
The answers to the conference panels
As the data show, the question is no longer whether banking is changing, but who will be able to shape the next day. This is exactly what the four panels of the Forbes Cyprus Next Generation Banking & Fintech Summit will attempt to map, bringing to the fore the major technological, business and institutional challenges that are redefining the financial sector.
The first panel, titled "How a Small Island Wins," will focus on the ingredients a small economy needs to compete internationally, from regulation and investment to human talent, digital infrastructure, and the collaboration of diverse ecosystems.
Next, "AI and the Reinvention of Mainstream Banking" will examine how AI is changing the core of banking, organizations' decisions, and customer experience.
The "New Finance / Stack" panel will take the discussion to digital assets, payments and the new relationship that is being formed between banks, fintechs and technology companies, while "Trust and Security in Digital Finance" will focus on cybersecurity, infrastructure resilience and trust, which are now key conditions for the further digitalization of financial services.
