THE sector of young people innovative financial technologies and activity start-ups (finTech) is at the heart of it strategy of banks who closely monitor developments in the field and make significant investments for him digital transformation which is in full swing. As they have pointed out systemic bank executives the domestic banking system is in an open line of communication and cooperation with ecosystem of start-ups in this field and deals with it in addition to the actions it carries out in the field of their technological development.
The strategy and their positions on this issue, in the context of the wider digital their transformation conducted by the CEOs of the 4 systemic banks in the recent congress of MoneyReview
Pavlos Mylonas – National Bank
All traditional banks invest in digital their transformation to deal not with fintech companies, but to meet the demands and needs of their customers, Chief Executive Officer of the National Bank Pavlos Mylonas, stating that Ethniki, in the context of its transformation program, has made huge leaps towards the digital transition. According to Mr. Mylonas, the National Bank, having already invested enough funds and with investments continuing, has the largest number of active digital media users in the market, with more than 2 million, with a market share of 32%. According to Mr. Mylonas, apart from investing in digital banking, Ethniki’s goal is to cooperate with fintech companies, which it does not consider to be competitive with banks, but complementary, as fintech companies usually specialize in a specific service. The recent agreement announced by the National Bank with EVO Payments in the field of payments, was not made for capital reasons, but is the first step in implementing a strategy of strategic partnerships with fintechs through which the Bank will take advantage of the synergies of the most technologically advanced companies, added Mr. Mylonas.
Vassilis Psaltis – Alpha Bank
The distinction between the mission of a banking institution and the initiatives of fintechs was highlighted, the CEO of Alpha Bank Vassilis Psaltis. Alpha Bank’s goal is the complete and easy access of the customers to its banking, investment and bank insurance services, in order to cover 100% of the needs of the society and the creation of multiple points of contact with the customer for the achievement of the social mission in terms of financial inclusion, said Mr. Psaltis. «We invest at technological us infrastructure and we are constantly evolving our digital services to our customers and, secondly, we seek partnerships with fintech, in order to offer our customers additional quality services and modern digital experiences “, added the CEO of Alpha Bank, to note that in addition to the continuous digital transformation of its products and services and the continuous upgrading of infrastructure to enhance the security of transactions, areas in which it invests more than 100 million euros annually, the Bank organizes in recent years innovation competitions, such as Finquest , through which more than 200 Greek and international fintech and more than 80 innovation teams consisting of its employees have emerged. At the same time, it utilizes both the Bank’s private equity arm, Alpha Ventures and strategic partnerships with the Venture Capital Funds of the market, in order to strengthen relevant fintech capital, further helping the creation of innovative digital services and products.
Christos Megalou – Piraeus Bank
Regarding the competition of banks with fintech, the of Piraeus Bank Christos Megalou pointed out that Piraeus Bank closely monitors the space and developments in Europe and makes significant investments in technology. As Mr. Megalou said, the specific investments amount to 140 million euros this year and a corresponding amount in 2023, while it is cooperating with Microsoft for the transition to a cloud environment. The CEO of Piraeus Bank stressed that the advantages of large organizations such as banks, and especially the broad deposit and customer base they have, should not be overlooked. As mentioned transition of technological infrastructure of Piraeus Bank in the cloud will act as a catalyst for innovation, providing pioneering and secure banking services that comply with the respective regulatory framework. Through the cloud, Piraeus Bank seeks to increase the overall operational efficiency and flexibility, the faster launch of new products and services, the improvement of the level of customer service, the reduction of IT expenses but also the achievement of sustainable development, with the reduction of energy of the fingerprint.
Fokionas Karavias- Eurobank
The start-ups of financial sector is a reality, he said CEO of Eurobank Fokionas Karavias, pointing out that they have prospects and advantages – they are flexible and develop technological solutions more easily. But growing up to compete with traditional financial institutions they will find that things are not always easy, as on a larger scale they will also face challenges, such as. operating in a highly regulatory environment to which they are not accustomed. Their presence is more of a motivation to improve than a threat, he added. Eurobank has chosen a specific strategy, it will not compete with fintech companies, it will not become a digital bank. “Our model is phygital, a combination of the physical and the digital world. We are talking about the evolution of traditional banking to keep pace with current conditions. At the base will always be the personal relationship, the trust, the direct contact between the bank executive and the customer. At the same time, however, we are equipped with the most modern technological means so that physical contact exists where it is needed and has meaning and utility, while other operations, all other banking operations can be done electronically and digitally “, said Mr. Karavias.
Eurobank, said among others Mr. Karavias, invests in utilization of datawhose wealth it currently utilizes relatively limited, in artificial intelligence and machine learning, ie algorithms and tools that will allow us to be more efficient and less costly in various critical areas, such as regulatory compliance, credit risk assessment for new financing, marketing etc. in order to reduce costs but also to give faster answers and customer service.
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