Chief Scientist Dimitris Skourides speech at the Cyprus Fintech Summit 2024
Chief Scientist Dimitris Skourides speech at the Cyprus Fintech Summit 2024
6th of December
Ladies and Gentlemen,
Esteemed Colleagues
Distinguished Innovators,
and Pioneers of the Future,
It is a privilege to be here today at the Cyprus Fintech Summit 2024, where we have come together to explore the remarkable innovations shaping the future of finance and technology. Today, as we gather in this vibrant and dynamic setting, we are not just reflecting on the progress we’ve made, but we are relaying the foundations for a future driven by innovation, collaboration, and shared success. Let me share with you that since my last speech here, Cyprus’s credit rating has been upgraded by Scope Group, Moody’s, S&P, Fitch, and Capital Intelligence (CI), reflecting our economic stability and their confidence in the Cypriot economy
Cyprus has increasingly positioned itself as a hub for fintech innovation, and we are witnessing the extraordinary growth of this sector, which contributes significantly to both our economy and global financial technology. The convergence of advanced technologies and emerging trends is fundamentally transforming the fintech ecosystem. As digital innovation accelerates, fintech companies are leveraging cutting-edge solutions like AI, machine learning, and open banking to enhance service delivery and customer experience. Trends such as the rise of digital wallets, the adoption of sustainable practices, and the integration of financial services into everyday platforms are reshaping how financial services are accessed and utilized. This dynamic interplay of technology and trend-driven change is not only creating new opportunities but also redefining the competitive landscape, driving the fintech industry towards a more inclusive, efficient, and customer-centric future
Let me begin by sharing some figures that demonstrate just how significant the fintech ecosystem has become here in Cyprus. Today, there are over 300 fintech companies operating in Cyprus, and number continues to grow at a rapid pace.
Today, Fintechs in Cyprus are already innovating with many of them leveraging AI-powered chatbots and virtual assistants to support customer service, ai algorithms identifying fraud detections and remediation, and enhancing credit risk assessment. Ai is also used to personalize customer experiences, with customers benefiting from personalized financial advice. With AI, the transformational impact in wealth management applications is staggering considering the infinite scale potential as technologies such as cloud and AI introduce next generation investment management solutions. AI is rapidly becoming the cornerstone enhancing operational management and accelerated regulatory compliance.
Cyprus has seen the rise of some remarkable success stories that are making waves on the global stage with CNBC citing some as Tech transformers to watch closely In the future Notable successs include social trading platforms such as that of eToro with 27million users globally, the usage of cutting edge technologies like AI and machine learning that are providing innovative brokerage services within the trading algorithms. Cyprus has digital payment platforms that are considered as Top 50 fastest growing platforms In the the Middle East & Cyprus, ranked by Deloitte Technology Fast 50 program such as Paybl payments platform which is transforming cross-border payments and simplifying financial transactions. Such innovations and particularly Cross-border payments are growing quickly thanks to API advancements, improved visibility and transparency, virtual account solutions and partnerships.
The local financial banking ecosystem comprised of the largest banks has already embarked in adopting cutting edge technologies such as AI across its enterprise while the Insurance ecosystem is also in the beginning of the evaluation journey. The rapid adoption of emerging technologies is ensuring that banks continue to improve their customer experience via digital channels creating a new competitive advantage and value for Cypriot citizens.
Now, let us turn to the employment impact of the fintech sector. From data scientists and software engineers to financial analysts and project managers, fintech companies are providing high-value jobs that not only support the local economy but also foster the development of specialized skillsets in areas like AI, blockchain, and cybersecurity.
Cyprus’ fintech sector is not just growing in size, it is growing in sophistication. Many of these companies have already embraced artificial intelligence in their operations. AI is fundamentally transforming the way we think about financial services, with applications ranging from fraud detection and customer service automation to personalized investment recommendations.
As Chief Scientist of Cyprus, I am proud to witness the growing role of research and development within the fintech industry. Companies across Cyprus are investing heavily in R&D to ensure that they remain at the forefront of technological innovation. Through collaborations with academic institutions and research organizations, they are developing minimal viable products exploring next-generation technologies, skilling up workforce and paving the way for a sustainable digital economy. The contribution of fintech in Cyprus should not be limited only to Cyprus’s economic growth as both disruption and disintermediation of existing solutions is creating new market opportunities, new revenue streams, and horizontal long tail effects that are opening up new synergies across other industries with the customer at the center.
However, as we look ahead, we must keep in mind the broader challenges. The rapid pace of digital transformation presents not only opportunities but also risks as the industry pursues rapid automation leveraging emerging technologies which have the disintermediation potential that may affect traditional banks by offering more efficient, customer-centric, and innovative financial services. The disintermediation may happen due to trends such as Open Banking, Digital Wallets and Mobile Payments, Buy Now, Pay Later (BNPL) Technology and innovation can be seen as the neutralizing factor, When adopting technologies such as AI and blockchain, we must also ensure that they are deployed ethically and in ways that promote transparency, security, explainability, and reduce bias. It is important for us to think about human-centred AI augmentation and imperative that Fintechs start thinking and designing how they will conform to the EU AI act that will come in force by August 2026. The adoption of AI is expected to also create opportunities for new talent, particularly in the areas of AI engineers, data scientists, data quality and governance resources complemented by AI cyber security experts.
As we move forward, the role of collaboration becomes even more important. Fintech is a global industry, and its future success depends on partnerships and cooperation across borders. Cyprus has the opportunity to be a leader in these efforts, creating synergies between local companies, international investors, and other institutions. Conferences such as the Cyprus Fintech Summit, we are ensuring that the country remains connected to the global fintech ecosystem, sharing knowledge and best practices while advancing our own interests.
In conclusion, Cyprus’ fintech sector is a beacon of innovation, growth, and potential. It is a sector that reflects our country’s ability to adapt, to lead, and to move at scale embracing the future, it’s not about technology, but rather about Co-creating value for customers and stakeholders the technologies of the future. Rest assured that the Government of Cyprus is fully committed to supporting the fintech sector as a pillar of innovation and economic growth.
The road ahead is one of continuous innovation, and with the right support, collaboration, and investment, Cyprus will continue to be at the heart of this digital revolution.
We stand at the threshold of a new era in financial technology. Together, we can build a more inclusive, transparent, and efficient global financial system, and Cyprus, with its unique strengths, is poised to play a central role in shaping that future.
Let us continue to innovate, inspire, and transform together.
Thank you.
