Cyprus’ banking sector has undergone a profound transformation since the 2013 financial crisis, marked by sweeping consolidation, branch closures, and a rapid shift towards digital banking.
Since 2013, several key players have exited the scene. Laiki Bank and the Cooperative Bank have both shut down.
Hellenic Bank, which absorbed the Cooperative, is now part of the Greek Eurobank group. In parallel, RCB surrendered its banking licence.
Alpha Bank, having acquired Emporiki Bank in 2014, is now set to take over AstroBank, which had earlier absorbed USB Bank.
As a result, the structure of the sector has shifted significantly. Figures from the Association of Cyprus Banks for 2024, shared by Philenews, show just how much the system has contracted.
The number of branches, staff and ATMs has steadily declined, while digital services have become increasingly central.
The first major shock came in 2013, in the aftermath of the financial crisis. Then, in 2020, the COVID pandemic brought a second wave of disruption, accelerating the push towards digital banking.
At the same time, generous voluntary exit schemes led to further reductions in staff numbers.
Looking back, the scale of change is striking. In 2012-2013, the Association of Cyprus Banks had 12 members employing 9,273 people, with 384 branches and 423 ATMs.
By 2023, the membership had dropped to 10 banks, with 6,477 employees, 162 branches and 336 ATMs.
In 2024, the trend continued: the same number of members reported 6,525 employees, 158 branches and 332 ATMs.
Although the number of employees edged up slightly last year, the overall picture is clear.
The physical banking network continues to shrink, while the shift towards digital channels is accelerating.
As things stand, fewer branches, fewer staff, and more online transactions are shaping the future of banking in Cyprus.
