The conditions that will determine the winners of the next decade in the European banking sector were highlighted by the Deputy CEO of Alpha Bank, Lazaros Papagaryfallou (photo), during the Banktech 2026 conference, emphasizing that scale, breadth of services, and strategic partnerships are critical prerequisites for enhancing the competitiveness and sustainability of banks in Southeastern Europe.
As he explained, in an increasingly integrated European market—whether it concerns capital markets, instant payments, the Savings and Investment Union, or the digital euro—the financial sector is now called upon to develop greater scale and strong networks in order to demonstrate the necessary competitiveness with the rest of Europe.
"Scale is not a choice. It is a necessity," Mr. Papagaryfallou said characteristically, pointing out that achieving scale allows for better absorption of the fixed cost in the sector, for investments in technology, artificial intelligence, cybersecurity, and regulatory compliance.
However, as he noted, the banks of Southeastern Europe and Greece in this case are now at a better starting point compared to the past, as the quality of their assets, profitability, and credit expansion are now close to or above the European average.
How scale will be achieved
In his statement, Mr. Papagaryfallou stressed that it is important to have critical size and a leading position in every market in which one operates, specifically mentioning the example of Alpha Bank in Cyprus, where with the addition of AstroBank it became the third largest bank in the market, while similarly in Romania, the merger of Alpha Bank's activities with those of UniCredit created the third largest bank in the country. In principle, both strategic moves concern the allocation of capital where scale can be achieved.
Scale is also reflected in the breadth of capabilities. According to Mr. Papagaryfallou, a medium-sized bank can be competitive in its markets of presence when it is able to offer quality products and services, from investment banking to asset management and insurance. As he specifically explained, "the breadth of options is of critical importance for the Greek market as well," as there are today needs of households and businesses that are not being met and significant opportunities for banking intermediation and for channeling savings into productive investments.
The third critical dimension for the banks of the next decade should be the development of networks and synergies. "Where a bank cannot quickly gain reach on its own, it must achieve it through partnerships, just as Alpha Bank has done with UniCredit: through this partnership we provide our clients access to a network covering thirteen European markets, while at the same time UniCredit strengthens its ties with one of the fastest-growing credit markets in the eurozone," noted the Deputy CEO of Alpha Bank.
At the same time, Mr. Papagaryfallou highlighted the need for completion of the banking union, so that capital and liquidity can move in Europe as freely as the euro, as today, according to estimates, about 230 billion euros of liquidity remain trapped in subsidiaries within the national borders of member states. Similarly, the promotion of the Savings and Investment Union is also important, which will more effectively bridge the savings of European households with productive investments.
"A cohesive Europe needs strong banks in every region, and we must ensure that in the future the Banks of SE Europe will be in a strong position among them," he noted.
Unified experience for clients with presence in 4 markets
In response to how Alpha Bank is turning its presence in four countries—Greece, Cyprus, Luxembourg, and the United Kingdom—into a unified experience for its clients, Mr. Papagaryfallou highlighted three prerequisites that make this possible: unified client onboarding process, unified product range, and unified coverage model. He specifically mentioned that "an entrepreneur in the United Kingdom, with a company in Cyprus and family in Greece, should be identified at their bank only once."
Towards this direction, Alpha Bank this year launched digital onboarding capabilities for international clients, so that Greeks, Cypriots, but also clients of other nationalities living abroad and having ties with Greece or Cyprus can start their cooperation with the Bank remotely.
"Greece, Cyprus, Luxembourg, and the United Kingdom, as distinct markets each with their own characteristics, will operate complementarily within the framework of a unified client coverage model we have developed, combining local knowledge with European networking and expertise," noted Mr. Papagaryfallou.
Regarding the unified product range, as he explained, "we are investing in the creation of central production units" in the fields of corporate and investment banking, wealth management, and payments, "and we are adding more capabilities and options for our clients by collaborating with UniCredit."