By Michalis Psilos

Chief Executive Officer of National Bank of Greece, Pavlos Mylonas addressing the challenges facing systemic banks in the new era, warned that Cybersecurity is the major issue that deserves far more rigorous attention.

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 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.

Participation in the 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 a 1:1 peg to the euro, and be launched on 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 also leverage Allianz’s expertise and advanced digital capabilities.