Nicosia, Cyprus. Central Bank of Cyprus (CBC) governor Christodoulos Patsalides said the country’s financial services landscape has changed significantly over the past decade. Speaking at a fintech forum in Nicosia, he said Cyprus’ domestic economy continues to be robust.
Economic conditions and banking sector indicators
Patsalides said growth remains significantly above the euro area average at about 3.5 per cent, supported by services, tourism and professional activities. He added that public debt is on a downward trajectory and labour market conditions remain favourable and close to full employment.
He said the Cypriot banking sector is “a pillar of resilience and a factor for growth.” Patsalides stated that the Common Equity Tier 1 (CET1) ratio is about 10 percentage points above the euro area average and that liquidity ranks among the strongest in Europe.
Digital payments and new financial services providers
Patsalides said that, in line with European trends, Cyprus has seen significant changes in financial services over the last decade. He said Cyprus is now home to a growing community of digital payment providers, such as Electronic Money Institutions and Payment Institutions, though he noted that the bulk of this business is conducted outside Cyprus.
Artificial intelligence adoption in financial institutions
Referring to artificial intelligence, Patsalides cited research indicating that more than 70 per cent of financial institutions worldwide are already using, piloting, or exploring AI-based applications. He said these include customer interaction and credit assessment, fraud detection, trading, and risk management.
How do you think the growth of digital payment providers will affect Cyprus’ financial services sector?