Petsas: Digital transformation is a banking sector necessity

Andreas Petsas, Senior General Manager at Eurobank Cyprus, explains how the Bank builds and maintains strong relationships with its clients and how Eurobank Cyprus retains its competitive edge in the market.

What are the key factors that differentiate your bank from its competitors in Cyprus? How do you maintain a competitive edge in the market?

As mentioned in the past, the model of our Bank has been built on the wholesale banking perspective that serves Corporate Banking, Wealth Management, International Business clients and Capital Markets. In recent years, a new line of Affluent Banking has been added, servicing clients of broader wealth criteria, but that has not brought any deviation from our basic model. The above lines of business allow for a more centralised and well-managed service offering to be delivered by our Head Office Divisions and a network of eight Business Centres that cover all the cities on the island. This setup has proved very successful and profitable over the last 16 years and, despite the growth of the Bank, we have managed to maintain this advantage and keep personalised client service and satisfaction at high levels. The basic reason for this success is the carefully selected human factor that drives our efforts, delivering service at extended hours whenever needed. This, combined with our excellent knowledge of the market and the Bank’s products, brings the desired outcome.

What is your bank’s approach to digital transformation and innovation? How are you leveraging technology to improve customer experience and operational efficiency?

Digital transformation is not an option for the banking sector; it is a necessity, to develop and bring value to shareholders and clients. The rapid development of digital banking globally, and the proximity and access of clients to digital solutions, are reshaping business models in the banking sector. The need to contain the increase in costs, in combination with the aforementioned factors, makes the use and adoption of new technologies continuous. Our Bank decided long ago to become a leader in the technological offering to clients. We have not yet reached our target but we are constantly approaching it. We have finalised the first phase of a complete systems change and upgrading while other phases and advancements are following at a pace that has stressed but, at the same time, surprised us all. These changes are already giving our clients increased functionality compared to our previous offering. Both externally (for clients) and internally, the effort is to make all our processes digital, thus reducing delays in decision-making, decision-implementation, etc. All these must be achieved while maintaining physical contact with clients and, at the same time, increasing the importance given to our digital channels. Within our Group, this combination of physical and digital is referred to as “phygital.” The result enables both clients and staff to work more efficiently. For example, a complete service is given to clients for their day-to-day transactions but, at short notice, we are available to discuss in person any needs for the financing of projects, investment needs etc.

With the increasing importance of sustainable finance and environmental considerations, what initiatives has your Bank undertaken to promote responsible banking practices and contribute to a more sustainable future?

In line with the United Nations Sustainable Development Goals and the 2030 Agenda goals, Eurobank Cyprus has developed its approach across the ESG spectrum and its business objectives across two levels of impact: the financial impact, resulting from its lending and investment activities in specific sectors and clients, and the operational impact, which arises from the Bank’s own operations.

In 2022, Eurobank Cyprus initiated a number of activities relating to its environmental impact (operational net zero, paperless banking, circular economy). The use of solar panels on the Bank’s buildings, the adjustment of systems and procedures for the maximum number of paperless activities, recycling, etc are just some of these activities. At the same time, the Bank has been focusing on the development of a Sustainable Finance Framework and on ensuring full compliance with the ECB’s expectations, as stated in the relevant ECB guide on climate and environmental risks. Through the Sustainable Finance Framework, our Bank will classify sustainable lending solutions offered to its customers, specifying the applied classification approach and the activities defined as eligible to access sustainable financing (eligible green and social assets). The Framework’s scope encompasses a wide range of ESG lending sustainable financial products and services covering the Bank’s portfolios. The Bank aims to fully integrate the Sustainable Finance Framework into its core operations in 2023 and is targeting the maximization of financing in new “Green Investments”, which could be renewable energy projects, energy-efficient buildings, net zero emission logistic centres and the avoidance of energy-inefficient industries that produce high emissions.

What strategies does your Bank have in place to attract and retain corporate clients? How do you build and maintain strong relationships with your clients?

Clients are attracted to the Bank through multiple channels, especially with the Bank having created a strong client base and a good name in the market. There is no magic prescription. Anything that is needed for organisations in the service industry, that are doing business in order to build and maintain relationships with clients, is valid for our Bank as well. Punctuality, consistency and personal attention to the client’s needs and problems are needed. This can only be applied by the human factor and that is our number one recipe for succeeding in business development. The simplest things make a great difference – answering a call at a difficult time, meeting an important deadline, trying to put ourselves into the client’s shoes before we respond, discussing the client’s plans and prospects, explaining why we would not take a particular risk, protecting the client on many occasions from wrong decisions. In a nutshell, the “secret” is to stay close to the clients and be ready to respond.

(Photo by TASPHO)

This interview first appeared in the 2023 edition of The Cyprus Journal of Wealth Management. Click here to view it.