London Business School professor Costas Markides suggests Cyprus should focus on niche fintech sectors to build a competitive advantage.
Key facts
- •Costas Markides suggests Cyprus focus on payments, wealth management, shipping, and AI to compete internationally.
- •The Forbes Cyprus Next Generation Banking & Fintech Summit will feature four panels covering digital infrastructure, AI, new finance, and cybersecurity.
- •Bank of Cyprus is integrating agentic AI and Microsoft Azure AI services to alter consumer interactions.
- •ATM contactless support in Cyprus is nearly double the euro area average of 38 percent.
- •Bank branch density in Cyprus has declined from 137.3 branches per 100,000 people in 2002 to 19.4 in 2024.
London Business School professor Costas Markides argues that Cyprus can transition from a consumer of banking technology to a creator by focusing on specific fields like payments, wealth management, and artificial intelligence. Markides, who will keynote the Forbes Cyprus Next Generation Banking & Fintech Summit in Limassol on October 13, emphasizes that a national strategy involving government, banks, and universities is essential for success.
By the numbers
Digital Payment Trends in Cyprus
Data from the Central Bank of Cyprus shows a significant shift toward digital payments. In the second half of 2025, the country recorded 174 million cashless transactions totaling 148 billion euros, an 8 percent year-on-year increase. Card payments accounted for 75 percent of these transactions, the highest share in the euro area. Additionally, Cyprus experienced the largest decline in cash transactions at points of sale within the euro area between 2022 and 2024.
Infrastructure and Branch Consolidation
The physical banking landscape in Cyprus is contracting as digital adoption grows. Over 73 percent of ATMs in the country now support contactless transactions, significantly higher than the 38 percent euro area average. The number of ATMs fell to 396 by the end of 2025, a 13 percent decrease over five years. Similarly, the number of bank branches dropped to 19.4 per 100,000 inhabitants in 2024, down from 137.3 in 2002, driven by cost-cutting and the move toward digital banking.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by In-Cyprus.
