There have been rumours circulating amongst bankers in Cyprus that early 2020 will be a turning point in the banking sector and finance industry in general. As management costs increase and clients transform their preferences towards digital services, banks and lenders have to keep up and adapt to new realities. One issue rarely discussed about outside of bank senior management meetings, is the need to “consolidate” the system. Consolidation has rightly become known as a euphemism, or a common verb or by-word for mergers, acquisitions or even means smaller banks being bought out by larger ones.
Responding to the claims, government officials commented that this is not only Predicted to occur en masse in Cyprus; rather banks are predicting shedding up to 50% of their branches globally, from European countries such as France, Spain and Greece while large-scale mergers are the constantly in negotiations in board rooms.