“In terms of operating in the fintech industry, Cyprus has an opportunity, if it could adapt its regulatory approach. There is too much of a box-checking approach – you say that you want to do online banking, for example, and the list of requirements comes out. Other jurisdictions like Estonia and Lithuania have a
better orientation to business in their regulatory systems. No one says that the regulator should
ignore compliance requirements, but Cyprus could boost its fintech industry by adapting a more
progressive outlook,” says Andrew Anastasiou, Andrew Anastasiou, the 32-year-old Cyprus-based entrepreneur who has founded multiple fintech and payments companies here. Anastasiou gives solid insight about the evolution of the fintech environment in Cyprus.

Cyprus 4.0
Another opportunity would involve adaptation by Cyprus banks. One of the is-
sues in payments is finding what is called an ‘acquiring bank,’ one that can ac- cept and process payments.

In the industry, this kind of bank can be found easily, especially in China and Africa, but they aren’t
stable. You find one that is available one week, and the next week it’s shut.

Cyprus has a real opportunity here: If the banks here would become adaptable to receiving these
kinds of payments, then the fintech industry here could really grow.”

From the point of view of using fintech, there is great interest in Cyprus, Anastasiou notes.
“But fintech at the moment in Cyprus is booming in terms of interest and adop- tion. It’s
booming in terms of interest. So although there’s a long way to go, regarding
the expertise behind it, and in finding the right people to run it, the interest in it has gone
through the roof. People have begun to understand that fintech is the next step forward, and this
is not just among foreigners or expats,” Anastasiou says.

“Fintech is built around the everyday life of a Millennial. Take the example of a young
entrepreneur, using a Neobank or digital bank. This means finance is much easier: Everything is
transparent, in the right place, there are no hidden fees.”
It is the highly structured approach of traditional banks that keeps them lag- ging behind
fintech, Anastasiou points out.

“Whereas I think traditional banks have more or less stuck to a more institutional
understanding of how business is done, which, when you’re running a fast-paced business, just isn’t
practical. It is very hard to go through every tiny fee imposed on receiving a certain amount of
money, or a simple service.

“With fintech banking, I know the exact amount I’m going to pay for whatever I’m doing, and I know, this is what I’m going to get. And that also in- cludes a currency exchange. Banks still get so much of this wrong.

The market for fintech is growing in Cyprus because people are beginning to understand that it
offers it offers alternatives to traditional banking. A great many people in Cyprus already
have Revolut accounts, after all, and that is a kind of introduction to fintech. The younger
generation especially is turning to new financial apps – many still have regular bank accounts,
but also use digital banking, like N26, for example. This kind of fintech online is much more
user friendly, and efficient.”