The financial crisis of March 2013, which led to deposit haircuts, stock devaluations, and the collapse of Laiki Bank, reshaped how Cypriot financial institutions serve corporate clients. Businesses have since adjusted their banking relationships, focusing on diversification, risk mitigation, and digital financial solutions.

A survey conducted by IMR/University of Nicosia on corporate banking trends, customer satisfaction, and future opportunities revealed that most corporate clients are generally satisfied with their banks in terms of service quality, financing access, and response times.

• 76% of businesses plan to invest in technology to achieve corporate objectives.

• 67% prioritize employee training and skills development.

• 33% focus on exploring new markets and products.

However, a key trend emerging from the survey is that many businesses and individuals have expanded their banking relationships beyond their primary bank. This shift is largely attributed to the financial crisis of 2013, which prompted businesses to seek risk diversification through partnerships with multiple financial institutions.

According to the survey, businesses now maintain relationships with an average of two to three banks, while 46% collaborate with international financial institutions.

Despite overall satisfaction with traditional banking, businesses expressed concerns over transaction costs, leading many to explore alternatives such as Electronic Money Institutions (EMIs) and Payment Management Institutions (PMIs). These digital financial platforms provide flexible, tailored solutions at lower costs compared to conventional banking services, making them attractive for businesses seeking to optimize financial transactions and reduce expenses.

Despite growing interest in digital alternatives, corporate clients highly value personal banking relationships.

• 92% of corporate clients appreciate having a dedicated banker.

• 9 out of 10 businesses communicate with their banker at least once a week or every two weeks.

• Key factors influencing satisfaction include product range (78%), service quality (76%), and digital tools (72%).

However, customer satisfaction with banking fees remains low, at just 15%.

The survey highlights a trust gap between banks and digital platforms. While banks are perceived as reliable and stable institutions, fintech platforms are valued for their technological superiority, transaction speed, and reduced bureaucracy.

This shift places significant pressure on traditional banks to enhance speed, technological innovation, and cost efficiency, particularly in areas such as money transfers and digital payments. Despite these challenges, local banks remain the primary source of corporate financing, reinforcing their critical role in economic growth.

The findings indicate a new era in banking, driven by technological advancements, digital payment solutions, and evolving EU regulations on financial transactions, instant payments, competition, and security.

While the financial landscape is changing, the long-standing role of banks as the primary funding source for businesses and individuals remains unchanged.

The survey results were also analyzed at the 12th Banking Forum & FinTech Expo, where Christina Kokkalu highlighted emerging trends and challenges shaping the relationship between banks and businesses.