The position that the banking transition in Cyprus simultaneously creates intense pressures but also substantial opportunities, especially for banks with a diversified business model, was underlined by Khalil Letayf, Chief Executive Officer of SGBCy, in the context of the 13th Banking, Payments and Fintech Forum and Expo, presented by Logicom.
In a fireside chat titled 'Banking Without Borders – The Role of SGBCy in a Changing Cyprus Banking Landscape,' Letayf analysed the role that an internationally oriented bank can play in an environment of increasing concentration and intense competition.
Market concentration as a factor of stability
As he mentioned, the presence of large banking players in Cyprus first acts as a stabiliser for the market. "Large organisations have the capital adequacy, resilience and the ability to maintain strong solvency ratios," he noted, adding that this strengthens overall confidence in the banking system.
For smaller banks or organisations with a different business model, the existence of these "big players" is a challenge, but at the same time an incentive for clear strategic positioning, the CEO continued.
Diversification through international networking
Khalil Letayf stressed that SGBCy does not seek to compete with large banks in terms of market share. Instead, it has consciously chosen to operate as a boutique and niche bank, focusing on the international character of Cyprus.
SGBCy, he explained, leverages its strong international network, long-standing relationships in Lebanon and the Middle East, as well as its connection to markets in Africa and Europe. “This ‘DNA’ allows us to support businesses that want to operate from Cyprus to the wider region, as well as companies in the region that seek access to Europe through Cyprus,” he noted.
Cyprus as a hub of international entrepreneurship
According to Letayf, SGBCy's business model is clearly oriented towards international business, with Cyprus functioning as a market interconnection hub. "We are not here to take 40% of 90% of the market," he said. "We are here to support the role of Cyprus as a hub."
In this context, flexibility, speed of decision-making and specialised knowledge of cross-border transactions constitute the bank's key competitive advantages.
Innovation as a necessity, not as a choice
In closing, Letayf emphasised that innovation is not just a strategic choice, but a necessity for survival and growth in a borderless banking environment. As he stated, banks that understand their role in the new ecosystem in a timely manner and invest in the right specialisation will be the ones that will seize the opportunities of the transition.
The discussion was moderated by Chrysostomos Kritiotis, Managing Director of Logicom Solutions.
(Source: InBusinessNews)
