Matteo Taglioni, Vice-President and Managing Director of Kyndryl for Central and Eastern Europe & Eastern Mediterranean, talks about the company’s evolution, its ambitions in Cyprus and what the future holds for financial institutions navigating change, complexity and innovation.
Kyndryl emerged from a significant transition just a few years ago. How would you describe the company’s evolution in Central and Eastern Europe since its separation from IBM and what legacy would you like to build?
Since we separated from IBM in 2021, it’s been quite a journey! In Central and Eastern Europe and in the Eastern Mediterranean, the change has been especially energising. We’ve really shifted gears, moving from being seen as a traditional infrastructure provider to becoming a transformation partner. And that’s not just a label. It’s how our customers now see us and how we show up for them. What’s made the biggest difference is the freedom that came with independence. We’ve been able to move faster, focus more sharply and open up to new kinds of partnerships.
We’ve launched Kyndryl Bridge, our AI-powered integration platform, and Kyndryl Consult, our advisory arm. These aren’t just buzzwords. They’re already helping customers modernise with speed and confidence. Bridge is generating millions of insights and automating over 100 million actions every month globally – that’s impact! Here in the region, we’ve also deepened our work with partners like Microsoft, Amazon Web Services (AWS) and Google. That’s allowed us to support a wide range of industries – finance, manufacturing and the public sector. Whether it’s cloud, cybersecurity or data transformation, we’re helping customers tackle some of their biggest challenges.
And all of this is powered by our global network of Kyndryl Collaboratives – where we co-create, test and scale industry-specific solutions. These centres bring together deep technical expertise and sector knowledge, enabling us to continuously innovate and bring the best of our global capabilities to markets like CEE and EM, including Cyprus. As for me, stepping into this role, I’m thinking a lot about legacy. I want to build something that lasts, rooted in trust, innovation and local empowerment. I want Kyndryl to be known not just for what we do but for how we do it – collaboratively, thoughtfully and with a real commitment to customers, governments and the communities we serve.
Digital transformation has become a strategic imperative across every sector. From your perspective, how has this journey evolved in Cyprus and what distinguishes the local financial services sector from that in other European markets?
Cyprus is a great example of a market where ambition and adaptability come together. Over the past few years, we have seen steady progress in its digital transformation – driven by regulatory changes, rising customer expectations, the globalisation of operations and a growing awareness of the need for resilience. What truly distinguishes Cyprus is its ability to balance complexity with manageability. Its size allows for faster decision-making and implementation, which is especially valuable in sectors like financial services. Institutions are laser-focused on use cases that deliver real, measurable outcomes – whether it’s improving customer experience, strengthening cybersecurity and resilience or streamlining operations.
But the momentum isn’t limited to the financial services sector. We are seeing digital take root across the public sector, gaming, manufacturing, pharmaceuticals, shipping and construction – where technology is increasingly embedded in core strategy. Equally important is the country’s forward-looking embrace of emerging technologies. AI and cybersecurity in particular are no longer viewed as optional – they’re seen as strategic enablers. Kyndryl is proud to be at the forefront of this shift in Cyprus, helping organisations harness AI to drive intelligent automation, real-time insights and predictive capabilities, while embedding security and compliance into every layer of their IT environments.
Underscoring all of this is a uniquely collaborative ecosystem. Cyprus benefits from a strong culture of partnership between regulators, financial institutions and technology providers. Everyone is working on shared goals, which makes it easier to build integrated, tailored solutions. It’s a market truly open to innovation.
What are the core pillars of Kyndryl’s value proposition to financial institutions in Cyprus?
At Kyndryl, we bring something unique to the Cypriot financial services sector: the ability to pair global expertise with a deep understanding of the local landscape. One of the biggest challenges we help address globally and in the region is legacy infrastructure. Many banks and financial institutions are still running on ageing systems that limit resilience and innovation.
We take a structured, phased approach to modernisation, retiring outdated technology and moving toward cloud-native environments that support both today’s needs and tomorrow’s ambitions. Resilience is another area where we make a real impact. With Kyndryl Bridge, our AI-powered platform, we help financial institutions monitor operations in real-time and take proactive decisions so that they can respond to disruptions before they become major issues. In a sector where even a few minutes of downtime can have serious consequences, that kind of foresight is critical.
Cybersecurity is always at the forefront of our mind. We integrate advanced threat detection, behavioural analytics and real-time risk assessments into every layer of the IT environment, while ensuring compliance with evolving regulatory standards. Finally, we help customers build internal capabilities – talent enablement is a core part of our approach. We work alongside them to upskill teams and foster a culture of readiness that lasts well beyond the project.
As you have already stated, Kyndryl has established strong global partnerships with leaders like AWS and Microsoft. How do these alliances translate into practical value for clients in the Cypriot financial services sector?
Partnerships with global cloud leaders are a big part of how we deliver value, giving us a strong technological foundation but, more importantly, allowing us to tailor solutions that really fit the needs of our customers, especially in highly regulated sectors like financial services. Take cloud migration, for example. Thanks to these partnerships, we offer scalable, secure and compliant environments that help financial institutions modernise without disrupting critical operations. Cloud is not just a destination – it’s an enabler. It accelerates access to tools, analytics and applications, helping shorten time-to-market. Rather than simply lifting and shifting workloads, we help organisations modernise their legacy systems while striking the right balance between existing infrastructure and cloud-native capabilities. The result is a hybrid environment designed for seamless integration, secure hosting and regulatory compliance. What’s also exciting is how these alliances help us move faster.
By tapping into cloud-native tools and AI-driven capabilities, we are able to bring advanced services such as customer analytics, predictive maintenance and intelligent automation to market much faster and more cost effectively than if we were building everything from scratch. This aligns closely with what we saw in the Kyndryl Readiness Report for Financial Services. While 91% of banking and financial leaders feel confident about their current IT infrastructure, only 41% believe that it’s ready to handle future risks. This gap highlights the importance of not just having strong tech but also having the right partnerships and strategies in place to evolve with the market. The transparency- and consumption-based pricing models of our cloud partners also help financial institutions and banks plan better and manage risk more effectively, which is a top priority for this sector.
When working with clients in smaller but highly sophisticated markets like Cyprus, what sets Kyndryl’s approach apart?
In markets like Cyprus, there’s no such thing as a ‘one-size-fits-all’ approach and that’s exactly where Kyndryl stands out. What makes us different is how we listen first, move fast and tailor globally proven solutions to what actually works on the ground. Challenges like regulatory compliance or legacy systems might look similar across regions but the way we solve them has to be local.
Our starting point is always the same: understanding what matters most to each customer – their goals, their pain points, their operating reality. From there, we co-create a roadmap that balances short-term needs with long-term vision. It’s how we reduce risk, deliver real value and build partnerships based on trust. Additionally, we’ve seen an increased number of mergers and acquisitions in the country in recent years, where Kyndryl has also played a key role in ensuring that IT transitions are smooth, secure and aligned with both regulatory demands and business continuity goals. Our experience in managing complex integrations – across infrastructure, data, and applications – helps customers unlock synergies faster and reduce post-merger risk.
Looking ahead, which global technology trends do you believe will most significantly transform the financial services industry over the next five years?
The next five years are set to reshape financial services in a big way. Generative AI is already reshaping how banks engage with customers, manage risk and drive operational efficiency. At Kyndryl, we are seeing real momentum on how AI is being used to personalise services, detect fraud in real time and even automate compliance, raising what’s possible in the industry.
Another major shift is the rise of embedded finance. As financial services become more integrated into non-financial platforms, banks will need to rethink their technology stacks, moving toward API-driven architectures that support this new model of delivery. Sustainability is also moving up the agenda. With growing pressure to track and reduce environmental impact, financial institutions are turning to digital tools and cloud optimisation strategies like FinOps to align their operations with ESG goals.
At Kyndryl, we’re helping customers embed sustainability into their IT strategies – whether through energy-efficient infrastructure, carbon tracking or ESG-aligned reporting frameworks. And while quantum computing is still emerging, it’s already starting to influence how the industry thinks about cybersecurity and data protection. As these technologies mature, they’ll play a bigger role in safeguarding sensitive financial data. Last but not least, customer expectations are evolving fast. People demand more transparency, faster services and experiences that feel personal. Financial institutions that invest now in cloud, data and AI will be best-positioned to meet those expectations and lead the next wave of transformation.
What steps should financial institutions in Cyprus and the broader Eastern Mediterranean region be taking today to ensure that they will still be competitive, secure and resilient in 2030?
To stay competitive and resilient, financial institutions in Cyprus and the Eastern Mediterranean need to do more than just keep up: they need to get ahead. That starts with modernising core systems, moving away from legacy infrastructure toward agile, cloud-native environments. This shift lays the groundwork for innovation, scalability and long-term adaptability. Investing in people is equally critical.
According to the 2024 Kyndryl Readiness Report, over 40% of leaders report that the skills gap is slowing down modernisation efforts. To truly drive meaningful transformation, investing in building internal capabilities must be prioritised, especially in AI, cybersecurity and cloud. It’s not just about having the right tools but also having the right people to use them. Compliance is another area that needs a mindset shift. With regulations like DORA and NIS2 evolving fast, it cannot be an afterthought; it must be embedded into the design of IT systems from the start. ESG readiness must also be embedded into every transformation journey.
That means designing IT systems that are not only efficient and secure but also transparent and accountable. Kyndryl’s ESG governance framework – backed by our Sustainability Working Council and global reporting standards – ensures that our customers can meet evolving regulatory requirements while building trust with stakeholders. Finally, collaboration will be key. Whether through partnerships with fintechs, academic institutions or regional alliances, working together will help bridge capability gaps and accelerate innovation. Financial institutions that embed adaptability into their DNA today will be the ones sharing the industry’s landscape of tomorrow.
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This interview was published in the July issue of GOLD magazine. Click here to view it