Banking challenges in a changing world

Addressing the challenges facing systemic banks in the new era — including advanced technology, cybersecurity threats and the rise of so-called neobanks operating exclusively online — the Chief Executive Officer of National Bank of Greece, Pavlos Mylonas, spoke at a luncheon hosted for editors and executives of financial news websites.

“Cybersecurity is, in my view, the major issue that deserves far more rigorous attention,” Mylonas stressed, warning that “everything can be lost in an instant.” He noted, however, that the domestic banking system has invested more than 2.5 billion euros in advanced technology and artificial intelligence systems in order to respond to intensifying competition.

The CEO of NBG also referred to Claude Mythos — the new model developed by Anthropic — which is reportedly capable of outperforming humans in certain hacking and cybersecurity-related tasks, sparking intense debate regarding the risks such technologies could pose to digital services.

Mylonas underlined that the National Bank of Greece is already developing and deploying programs that significantly enhance the cybersecurity framework of both the institution and its customers.

NBG participation in a European stablecoin initiative

As part of the transformation of the financial system, the National Bank of Greece is also planning to participate in the Amsterdam-based Qivalis consortium, established by 12 European banking institutions with the objective of issuing a new euro-pegged stablecoin.

The consortium already includes, among others, ING, UniCredit, DekaBank, Danske Bank and CaixaBank. The consortium estimates that the European digital currency will enable fast and low-cost payments and settlements, maintain parity with the euro, and be launched in the market during the second half of the year.

The statement by the CEO of the National Bank of Greece signals that the systemic financial sector is gradually shifting its stance toward digital currencies, which are designed — at least in theory — to maintain stable value while being backed by traditional currencies such as the euro and the US dollar.

Mylonas also referred to the growing presence of new digital players such as Revolut, which already has approximately one million customers in Greece, primarily younger users.

National Bank – Allianz partnership

The CEO of NBG was also asked about the bank’s partnership with Allianz, in which the bank has acquired a 30% stake.

Mylonas estimated that, over the long term, the investment is expected to generate profits of approximately 80 million euros. The acquisition process is anticipated to be formally completed within the next 10-15 days. He also expressed confidence that the partnership would not only significantly increase insurance-related revenues, but would also leverage Allianz’s expertise and advanced digital capabilities.

Opposition to additional taxation

Mylonas also delivered a clear message to the government, emphasizing that there is no need for additional taxation on bank profits. As he stated, the Greek state is recording a strong fiscal surplus approaching 5 billion euros, rendering further taxation of banks unnecessary.

He further argued that any additional tax burden could negatively affect investor sentiment and trigger volatility in the stock market.

Geopolitical conditions

Mylonas ruled out future merger scenarios within the banking sector and any reduction in the number of Greek banks, stressing that such developments would create serious competition and oligopoly concerns.

He also repeatedly emphasized the issue of “uncertainty” regarding developments in the Gulf region and the continued closure of the Strait of Hormuz. “The Greek economy has strong defensive mechanisms and is performing very well, but much will depend on the duration of the crisis in the Gulf,” the CEO of NBG concluded.

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