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26 May, 2024
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What is the future for banks?

Banks must adapt to survive in the digital age, this includes cooperating with electronic payment institutions



by Yannis Georgoulas

Banks have suffered significantly in the last 15 years. Some have been forced to shut down, while others had to reduce deposits. In some countries, banks have been subject to capital controls, and many have had to change their shareholder structure due to state intervention. However, after considerable effort, banks have managed to get back on their feet. They must now move to the next stage if they are to survive, and this can only be accomplished through technology. Therefore, they are compelled to adapt and evolve.

Numerous banks have invested in digital services and technologies to enhance customer service and adapt to the changing ways people use financial services. Nonetheless, banks are confronted with challenges such as increasing competition from new financial players and the need to modernize their technology infrastructure. Hence, cooperation between banks and electronic payment institutions is essential to improve the provision of financial services and adapt to changes in the field of banking technology.

These two types of organizations can collaborate in several areas. For instance, in payments, banks and payment institutions can work together to coordinate processing and secure transactions. They can also use common technologies and platforms to enhance the services they provide in technology. Additionally, they can collaborate in innovation to create innovative services and applications that enhance the customer experience. There are already numerous instances of such partnerships overseas, such as PayPal and JPMorgan Chase, which allow customers to use PayPal's service in shops and businesses that do not accept JPMorgan Chase credit cards. Furthermore, Revolut and Lloyd's Bank have teamed up to allow Lloyd's customers to add their cards to Revolut's app. It is, therefore, about time that we see such partnerships in Cyprus to help banks meet the challenges and remain competitive.

Mr. Yannis Georgoulas is a Strategy and Operations consultant

Cyprus  |  banks

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