Gold Magazine April Issue 73

ISSUE 73 APRIL 15, 2017 PRICE €2.00

The FinTech Revolution Is Here!

5 291295 000577

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How financial dealings in Cyprus are changing

INTERVIEWS

BANKING

COMPETITIVENESS

PLUS

Jean-Eric Paquet Philippos Manaris Janez Potocnik

Maurice Sehnaoui on Cyprus and AstroBank

Why Cyprus is still not recognised as D ÀQDQFH FHQWUH

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ISSUE 73 APRIL 15, 2017 PRICE €2.00

ISSUE 73 APRIL 15, 2017

B U S I N E S S

: The FinTech Revolution Is Here!

By Voula Loizou

COVER

STORY

30 | GOLD | The Business Magazine of Cyprus

(B2C), customer-to-customer (C2C) and provider-oriented business-to-business (B2B) approaches. FinTech solutions therefore differ according to the providers and the type of interaction, as well as the banking and insurance processes they support.

In Cyprus, the new digital era offers new opportunities for financial institutions. Cost reductions due to the automation of existing business processes and reduction in transactional costs, as well as opportunities to create new revenue streams by offering entirely new products and services, will lead to improved efficiency, minimize errors and, most importantly, contribute to higher profit margins and growth. FinTech also enables financial institutions to create a customer-driven environment and enhance customer satisfaction, while meeting increasingly demanding consumer expectations. It increases brand awareness and FinTech-driven institutions can improve their brand positioning by differentiating themselves from the competition. By using FinTech technologies, clients can connect with a product more easily, efficiently and cheaply, and this enables institutions to build customer relations and improve communication with their client base.

GOLD spoke to representatives of FinTech users in three sectors: banking, insurance and non-banking financial institutions.

Banks in Cyprus have started to adopt a number of innovative technological initiatives and to focus on the interaction between customers and banks or among customers only. Among the examples are Cloud based technologies, real life solutions, process automation, personalized services, omni-channel technologies, advanced data analytics and business intelligence, credit scoring engines, electronic signatures and even Artificial Intelligence.

For the banking industry the most important sector of the emerging FinTech market is financing, followed by payment, cross-processes, and investments.

On the other hand, FinTech solutions for the insurance industry cover insurance-related processes including client advice, life and non-life insurance, claims and risk management as well as cross-processes. Important areas are the use of Big Data analysis to offer more personalized premiums and automated policy management. In contrast to banking, most of the solutions in the insurance industry focus on B2C while C2C services are rare.

Furthermore, other non-banking institutions such as Forex companies, start-up companies and large IT companies often concentrate on single activities, and a single provider typically does not cover all banking processes.

C2C interaction models provide direct interaction among customers. In addition to the B2C and C2C interaction models, these institutions provide B2B Fintech services which focus on cooperation among banks and non-banks. Among the examples of these B2B services are digital client advice (advice), personal finance management (payments), digital identity or stock analysis and prediction (investments).

The FinTech revolution, which has been globally under way for some time, has finally arrived in Cyprus and it promises not only to make finance more secure for financial institutions but also better for their customers.

At present, it may be that no FinTech product comes close to matching the convenience and security of a current account in a bank but if FinTech platforms were ever to become the main sources of capital for households and firms, the established industry would be transformed and made safer. Financial institutions can only gain from this innovation.

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hat is popularly known as FinTech (short for Financial Technology) is closely linked to the concept of financial innovation, which can be defined as an act of creating and then popularizing new financial instruments as well as new financial technologies, institutions and markets. FinTech encompasses innovative financial solutions enabled by IT and is often used by start-up companies that deliver those solutions, although it is becoming increasingly popular among incumbent financial services providers, such as banks and insurance companies.

Digitization has already had a strong impact on the financial services industry, in part because financial products are almost exclusively based on information.

Examples are payment transactions or credit contracts which, in most cases, do not include any physical components. Another reason is that many processes are almost entirely implemented without any physical interaction, such as online payments or stock trading.

The evolution of the financial services sector due to developments in information technology (IT) and to the ongoing process of digitization is not only leading to a fundamental reorganisation of the financial services value chain with new business models and new actors entering the market; it is also changing consumer behaviour. FinTech is changing the way we pay, transact, invest, borrow or get insured and it has justifiably been described as a revolution, given the way it is affecting how people manage their financial affairs. In essence, FinTech has shifted the business focus from intra-organisational solutions to customer-oriented business-to-customer

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| COVER STORY |

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www.goldnews.com.cy | GOLD | 31

6 | EDITORIAL 8 | BUSINESS BRIEFING

Economic & Business Highlights of the past month.

11 | MY WAY

Demetris Taxitarisâ&#x20AC;&#x2122; management style.

12 | FIVE MINUTES WITHâ&#x20AC;Ś Philippos Manaris

14 | THEY SAID WHAT?

Some of the more striking remarks made by and about Cypriots over the past month.

FEATURES 18 | Less Perceived Corruption and

SPECIAL PROMOTIONAL FEATURE 61 | FinTech & Technological Innovation

21 | Welcome to the Era of Open

Seventeen leading companies present their FinTech services.

Secrecy Cyprus still needs to work on its reputation if it is to be considered a Ă&#x201E;UHUJL JLU[YL ZH`Z 4HYR @LHUKSL VM [OL Global Financial Centres Index (GFCI).

Banking Natasha Kyprianides on the importance of Application Programming Interfaces to banking.

22 | A Star is Born

Maurice Sehnaoui explains why he wanted to acquire Piraeus Bank Cyprus and reveals the inspiration behind its new name.

32

94 9

24 | The London Property Outlook

After Brexit Photos from last monthâ&#x20AC;&#x2122;s event organised by the Consulco Group.

25 | Three Recent Tax Developments

By Tonia Antoniou

28 | Sustainable Development is the

30

Key to Prosperity 0U[LY]PL^ ^P[O 1HULa 7V[VJUPR ,\YVWLHU Commissioner for the Environment (2009-2014) and European Commissioner for Science and Research (2004-2009).

22

114 114

30 | MiFID II Is on the Horizon

4HYPH ([OPLUP[V\ +PYLJ[VY Âś *VUZ\S[PUN H[ 7^* *`WY\Z L_WSHPUZ ^OH[ P[ ^PSS TLHU MVY Cyprus.

32 | Wealth Management and Private

Banking in Cyprus Charis Kynigou, Head of Private Banking at (Z[YV)HUR VU OV^ [OL ZLJ[VY OHZ JOHUNLK and what Cyprus could do to raise its WYVĂ&#x201E;SL HTVUN /PNO 5L[ >VY[O 0UKP]PK\HSZ

94 | Ensuring Compliance through

Technology 0U[LY]PL^ ^P[O (U[OVU` *HYL` +PYLJ[VY EMEA Channels at LexisNexis Risk Solutions.

4 | GOLD | The Business Magazine of Cyprus

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1LHU ,YPJ 7HX\L[ +LW\[` :LJYL[HY` .LULYHS VM [OL ,\YVWLHU *VTTPZZPVU VU Cyprus and its emergence from the 2013 Ă&#x201E;UHUJPHS HUK IHURPUN JYPZPZ

103 | BUSINESS ESS CLASS Joanna Kasoulidou 106| TIME OFF Keep On Running.

99 | BOOKSHELF

108 | LUNCH WITH GOLD Christis Christoforou

100 | IN GOOD COMPANY /V^ 7HĂ&#x201E;SPH LUJV\YHNLZ [LHT^VYR I` creating a family-type atmosphere in which all members of staff are helped on their personal and professional journey.

112 | WHATâ&#x20AC;&#x2122;S ON GOLDâ&#x20AC;&#x2122;s guide to the best cultural events of the coming month.

Six of the latest business titles.

114 | A DAY IN THE LIFE Christos Michael

| EDITORIAL |

Digital Disruption

ISSUE 73 APRIL 15, 2017 PRICE â&#x201A;Ź2.00

The FinTech Revolution Is Here!

5 291295 000577

00001 >

How financial dealings in Cyprus are changing

INTERVIEWS

BANKING

COMPETITIVENESS

PLUS

Jean-Eric Paquet Philippos Manaris Janez Potocnik

Maurice Sehnaoui on Cyprus and AstroBank

Why Cyprus is still not recognised as D Ă&#x20AC;QDQFH FHQWUH

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PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

George Michail

GENERAL MANAGER

â&#x20AC;&#x153;Technological innovations will be the heart and blood of the banking industry for many years to come and if big banks do not make the most of it, the new players from FinTech and large technology companies surely will.â&#x20AC;?

T

MEDIA MANAGER

Antonis Antoniou EDITOR-IN-CHIEF

John Vickers

DAVID BREAR

wenty years ago, who would have believed that, one day, people would do their banking via their home computer, settle their bills using a mobile phone, do much of their shopping online and remotely operate devices in their home? Even the most imaginative sci-fi movies and books never envisioned the ubiquitous nature of 21st century technology but here we are, in many instances unable to live or function without it. Financial Technology (FinTech) in particular is developing at an astonishing pace and is being adopted around the world as traditional financial institutions seek to avoid being left behind by the smart young upstarts that can offer many of their services at lower cost and with greater convenience.

For this issueâ&#x20AC;&#x2122;s cover story, we sought the views of experts in three key areas of the financial services sector: banks, insurance companies and non-banking firms such as Forex brokers. As you will see, all are agreed on the need to invest in technology and not simply for the sake of keeping up with todayâ&#x20AC;&#x2122;s trends: the emphasis is clearly on using it in order to provide a better service for clients and customers. It would appear that our inbuilt desire for personal service is ultimately going to be satisfied by Artificial Intelligence, algorithms and computers rather than by people as more and more of us go online in order to conduct our business. In another interview-filled issue of GOLD, we speak to a former European Commissioner, Janez Potocnik, (page 28) and the current Deputy Secretary General of the European Commission, Jean-Eric Paquet (page 96), to people involved in banking, such as Maurice Sehnaoui of AstroBank (page 22) and Charis Kynigou, the same bankâ&#x20AC;&#x2122;s Head of Private Banking (page 32), to the co-founder of the Global Finance Centres Index, Mark Yeandle (page 18) and Anthony Carey of LexisNexis Risk Solutions (page 94). Furthermore, you can find out about the management style of MAP S.Platis General manager Demetris Taxitaris (page 11), the travel preferences of the PR Director at PR Partners, Joanna Kasoulidou (page 103), how the CEO of Action Global Communications, Chris Christodoulou, spends his free time (page 104) and the views of Deloitte Cyprus CEO Christis Christoforou on the econoJohn Vickers, my, politics and football (page 108). Add to all this our usual regular features and you have plenty of Easter reading. Enjoy the break and Chief Editor see you in May! john@imhbusiness.com

6 | GOLD | The Business Magazine of Cyprus

Daphne Roditou Tang

JOURNALISTS

Artemis Constantinidou, Voula Loizou CONTRIBUTORS TO THIS ISSUE

Tonia Antoniou, Maria Athienitou ART DIRECTION

Anna Theodosiou

SENIOR DESIGNER

Alexia Petrou

ASSISTANT DESIGNER

Stephanie Andreou PHOTOGRAPHY

Emma Louise Charalambous, Jo Michaelides, Christos Tsekouras MARKETING EXECUTIVE

Kevi Chishios

SALES MANAGER

Neofytos Constantinou SALES EXECUTIVE

Erika Phylakti

OPERATIONS MANAGER

Voulla Nicolaou

SUBSCRIPTIONS

Myria Neophytou PRINTERS

Cassoulides Masterprinters CONTACT 5 Aigaleo St., Strovolos 2057, Nicosia, Cyprus Mailing address: P.O.Box 21185, 1503, Nicosia, Cyprus Tel: +357 22505555, Fax: +357 22679820 e-mail: gold@imhbusiness.com subscriptions: goldsubscriptions@imhbusiness.com www.imhbusiness.com

#INVESTSEEME info@eurofast.eu | www.eurofast.eu

Your Regional Business Advisory Organisation

Invest in South East Europe and Middle East

Is your Cyprus company engaged in intra-group financing transactions?

Does your Cyprus company receive or provide loans to related entities?

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Contact our transfer pricing expert: Anastasia Sagianni anastasia.sagianni@eurofast.eu; +357 22699222

For more information on Eurofast and its service portfolio, please visit www.eurofast.eu.

BUSINESS BRIEFING IN THE NEWS

AWARDS

BAKER TILLY

Baker Tilly in South East Europe was awarded the Government’s “Special Export Services Award for 2015” at a ceremony at the Presidential Palace in Nicosia. CEO Marios A. Klitou described the award as “Recognition of the quality of our services, as well as the dynamism that our people are demonstrating for achieving excellent results in our efforts to promote our services and of our country as an international business centre.”

No BoC loans to Trump campaign, says Ross Former Bank of Cyprus (BoC) and current US Commerce Secretary Wilbur Ross said on April 2 that, to the best of his knowledge, during his tenure at the bank from 2014 until earlier this `LHY )V* OHK UV[ WYV]PKLK HU` SVHUZ LP[OLY KPYLJ[S` VY [OYV\NO HUV[OLY ÄUHUJPHS PUZ[P[\[PVU to Donald Trump’s election campaign. Ross, who gave up his seat on the bank’s Board in February when he was appointed by US President Donald Trump, was asked if there was a possible connection between BoC and the Trump campaign. He said: “Certainly not to my knowledge”. Asked about alleged links between BoC and any individuals or entities placed \UKLY <: ÄUHUJPHS ZHUJ[PVUZ OL [VSK *55 ¸0 JHU [LSS `V\ UV SVHU [OH[ 0 HWWYV]LK RUV^PUNS` was to a person on sanction.”

EDUCATIO N

University of Cyprus ranked 52nd in World’s Top 150

T

he University of Cyprus has been ranked 52nd in the annual list of the top 150 universities in the world that are less than 50 years old, published by the Times Higher Education Supplement. The university, which was founded 25 years ago, has climbed three places since last year. “As a young institution, the University of Cyprus is developing a reputation for solid research, and its academics are already world-renowned in certain fields. In 2010, for example, one of its professors, Christopher Pissarides was awarded the Nobel Memorial Prize in Economic Sciences, for his analysis of markets with search frictions,” the Times Higher Education Supplement said.

8 | GOLD | The Business Magazine of Cyprus

MILESTO NES

GCC COMPUTERS CELEBRATES 30TH ANNIVERSARY

GCC Computers, the leading IT solutions provider, is celebrating its 30th anniversary this year. CEO George Constantinou said, “It is amazing to think about how far computing has come since 1987 and we can all be proud of the role GCC has played and wants to continue playing in the technology sector.” Over the last 30 years, GCC has developed its business lines through long-lasting partnerships with major international vendors, including Hewlett Packard Enterprise, Juniper Networks Inc., Fortinet Inc, Akamai Technologies and Microsoft. GCC has become a key supplier of ICT solutions in the sectors of Telecommunications, Public/Government, Banking/Finance and SMEs.

BOOKYOURWEDDINGDAY.COM

The innovative Cyprus-based online platform for civil wedding bookings in Greece *`WY\Z JHTL ÄYZ[ PU [OL )LZ[ 5L^ )\ZPness & Services category at the Papastratos Start-Up/Scale-Up Greece Awards 2017.

The founder and CEO of the company, Maria Evripides, said: “We feel proud and thankful for all that we have accomplished until now. It gives us an incentive to further contribute to the economic growth of wedding tourism in Cyprus & Greece”.

DR. OLGA KANDINSKAIA

The assistant professor of Financial Studies and Head of the Master’s Programme in Management at the Cyprus International Institute of Management, was named “Outstanding New Case Writer” in the prestigious annual competition organised by the International Center of Business Case Writing. Dr. Kandinskaia’s study was entitled “Engino Toys: Staying in China or Moving to Europe?” It is [OL ÄYZ[ [PTL [OH[ [OL H^HYK OHZ NVUL [V H Cyprus-based school.

QATAR AIRWAYS Qatar Airways was named ‘Airline of the Year’ at last month’s 2017 Air Transport News Awards, in recognition of its innovation, service, hospitality and leading product design. Group Chief Executive, Akbar Al Baker, said: “We are deeply honoured to have been recognised by the readers of Air Transport News as the 2017 Airline of the Year. We take immense pride in driving our airline to be the best in the industry.”

SHIPPING

BANKING

Hourican to stay at BOC until end of 2018

B

ank of Cyprus has extended the appointment of John 7H[YPJR /V\YPJHU HZ .YV\W *OPLM ,_LJ\[P]L 6MĂ&#x201E;JLY [V December 2018. At a meeting last month, the Board of Directors thanked Hourican for his valuable contribution to the Group over the past three years and wished him every success in his new term.

Columbia and Marlow to merge

AstroBank: the New Name of Piraeus Bank Cyprus

A

stroBank (formerly Piraeus Bank Cyprus) unveiled its new name and brand identity at an event on March 29.

Piraeus Bank Cyprus was acquired last December by a group of international investors led by prominent Lebanese Banker and former Energy Minister, Maurice Sehnaoui. Piraeus Bank Group has a 17.6% share in the new bank.

A

proposed merger of Columbia Shipmanagement (CSM) and Marlow Navigation will create one of the worldâ&#x20AC;&#x2122;s largest shipmanagement companies, said Mark Oâ&#x20AC;&#x2122;Neil, the proposed CEO, at last monthâ&#x20AC;&#x2122;s Global Maritime Summit in Turkey. Due diligence for the deal between the two German-origin companies based out of Cyprus is now complete, he said, regulatory approval from anti-competition authorities in the countries where the two have important presences â&#x20AC;&#x201C; Cyprus and Germany â&#x20AC;&#x201C; is now awaited, with a green light possible as early as June. The new entity, called Columbia-Marlow, will be involved in the management of over 1,500 vessels.

N LATIO REGU

CySEC bares its teeth

C

ySEC Chairwoman Demetra Kalogerou had a meeting with senior executives of every Cyprus-based retail Forex firm and Binary Options brand on April 4, at which, according to FinanceFeeds, she took a stern approach towards the industry, expressing her views on particular aspects of its product range and the sales tactics used in its distribution, which she described as â&#x20AC;&#x153;very toxicâ&#x20AC;?.

Kalogerou told the meeting that CySEC is planning to implement a very stringent supervision plan, following a sharp increase in complaints from retail investors and from third countries against Cyprus based companies. â&#x20AC;&#x153;This increases the concerns as to whether certain products should be allowed to be offered to retail investors at all,â&#x20AC;? she said, adding that 10 out of 27 EU regulators are already taking measures against retail electronic trading in products that are not considered appropriate for retail investors. In its report FinanceFeeds noted that â&#x20AC;&#x153;This is the absolute first time that we have seen CySEC rear its head in this fashion, which could represent a turning point for the retail business in Cyprusâ&#x20AC;?.

EBRD ready to participate in Cyta privatisation

T

he European Bank of Reconstruction and Development (EBRD) is ready to take part in the privatisation of the Cyprus ;LSLJVTT\UPJH[PVUZ (\[OVYP[` *`[H HU ,)9+ VMĂ&#x201E;JPHS ZHPK this month. The EBRD began operations in Cyprus in 2014 and, from the outset, placed privatisations among its key targets. The Government hopes to attract a strategic partner/investor.

ELIAS NEOCLEOUS & CO LLC IS EXCLUSIVE CYPRUS CONTRIBUTOR TO DATAGUIDANCE

E

lias Neocleous & Co LLC has been chosen as the exclusive contributor for Cyprus to the Dataguidance platform, with a range of Privacy Notes on Cyprus law matters, including data transfers, CCTV, e-mail marketing and many more, which are updated on a regular basis and available online to registered users of the platform.

DataGuidance is the essential privacy intelligence platform, created for and used by privacy professionals worldwide, sup-

LEGAL

ported by more than 250 leading privacy experts and in-house Privacy Analysts worldwide.

Dataguidance users have access to comprehensive, consistent and up-todate information on core topics relating to data protection and privacy law in a number of jurisdictions.

The choice of Elias Neocleous & Co LLC as contributor to the platform is an acknowledgment and recognition of the Ă&#x201E;YTÂťZ WVZP[PVU HZ [OL SLHKPUN SH^ Ă&#x201E;YT PU *`WY\Z PU [OL Ă&#x201E;LSK VM KH[H WYV[LJ[PVU HUK privacy law.

66,560

THE TOTAL NUMBER OF EMPLOYEES IN THE BROADER PUBLIC SECTOR IN CYPRUS DURING THE 4TH QUARTER OF 2016. THE NUMBER *(5 ), )962,5 +6>5 05;6 7,673, 05 .6=,954,5; IN NON-PROFIT ORGANISATIONS, 4,254 IN LOCAL AUTHORITIES AND 6,001 IN PUBLICLY OWNED ENTERPRISES AND COMPANIES. www.goldnews.com.cy | GOLD | 9

BUSINESS BRIEFING

ENERGY

TOURISM

PAPHOS VOTED CHEAPEST HOLIDAY DESTINATION IN EUROPE

CYPRUS SIGNS BLOCK 10 CONTRACT WITH EXXONMOBIL AND QATAR PETROLEUM

CYPRUS, GREECE, ISRAEL AND ITALY SIGN EASTMED PIPELINE DECLARATION

n April 5, the Government and the ExxonMobil/ Qatar Petroleum consortium signed the exploration and production sharing contracts for Block 10 of Cyprus’ Exclusive Economic Zone (EEZ). In his remarks at the signing ceremony, Energy Minister Yiorgos Lakkotrypis reMLYYLK [V [OL Z[YH[LNPJ ZPNUPÄJHUJL VM ExxonMobil’s and Qatar Petroleum’s presence in the EEZ of Cyprus and the Eastern Mediterranean region, describing it as “immense, especialS` ^OLU JVUZPKLYPUN [OLPY ÄUHUJPHS depth and calibre of expertise in the ÄLSK VM O`KYVJHYIVUZ HUK 35. ¹

t a meeting in Tel Aviv in the presence of EU Commissioner for Climate Action & Energy Miguel Arias Cañete, the Energy Ministers of Cyprus, Greece, Israel and Italy signed a Joint Declaration on the EastMed Pipeline Project, acknowledging that the recent gas discoveries in the Eastern Mediterranean, together with the potential for additional substantial discoveries, could transform the YLNPVU PU[V H ZPNUPÄJHU[ NHZ L_WVY[LY to global gas markets. They support the establishment of the Eastern Mediterranean as another corridor for Europe’s gas supplies.

O

Paphos has been named the cheapest place to spend H ^LLRLUK ¶ JVZ[PUN VU H]LYHNL Q\Z[ ;OH[ [Vtal includes 12 typical city-break costs including an evening meal for two with wine, drinks, two nights’ weekend accommodation, sightseeing and city transport. Paphos narrowly beat the Lithuanian capital, =PSUP\Z [V [HRL [VW ZWV[ PU [OL HUU\HS 7VZ[ 6MÄJL ;YH]LS Money City Costs Barometer. Andrew Brown of Post 6MÄJL ;YH]LS 4VUL` ZHPK ¸;OPZ PZ [OL ÄYZ[ [PTL [OH[ Western capitals have provided the low prices usually associated with Eastern European cities.”

A

THAILAND, CYPRUS AND TURKEY MOST POPULAR DESTINATIONS FOR RUSSIAN TOURISTS

Thailand was the most popular destination among tourists from Russia in 2016. Some 866,600 tourists travelled to the country, 28% more than in the previous year, according to the Association of Russian Tour Operators (ATOR). Cyprus, which was visited by 812,700 Russian tourists, ranked second, with tourism up by 48% compared to 2015. Turkey came third, with 797,000 Russians visitors, though this represented a O\NL MHSS VM VU [OL ÄN\YL MVY [OL WYL]PV\Z `LHY Spain came 4th in the survey and Greece 5th.

AVIATION TUS Airways

Blue Air

Cobalt

Jet2.com

TUS Airways has announced its plans to start KPYLJ[ ÅPNO[Z [V HUK MYVT Israel in the summer. It will have four to six weekly ÅPNO[Z [V /HPMH HUK [^V [V MV\Y ÅPNO[Z [V ;LS (]P] ;OL airline also plans to add Athens to its destinations in the next few months.

Blue Air has added another UK destination to its schedules from Cyprus. On March 26, the HPYSPUL PUH\N\YH[LK P[Z ÄYZ[ ÅPNO[ to Birmingham, and by June 15 P[ ^PSS IL Å`PUN [V H [V[HS VM LPNO[ destinations. These are Athens, Thessaloniki, London Luton, Bucharest, Birmingham, ClujNapoca, Tel Aviv and Liverpool.

Cobalt has announced the addi[PVU VM H ÄM[O HPYJYHM[ [V P[Z YHWPKS` L_WHUKPUN ÅLL[ ;OL UL^ ( ^PSS Z[HY[ ÅPNO[Z ZOVY[S` PU order to satisfy the increasing demand for seats to and from Cyprus. CEO Andrew Madar said that it is the second Cobalt aircraft under lease from China’s ICBC Leasing.

1L[ JVT OHZ ILN\U ÅPNO[Z MYVT Birmingham Airport and London Stansted to Paphos and plans to operate the two routes all year round, offering a total of 40,000 ZLH[Z 1L[ JVT UV^ ÅPLZ IL[^LLU Paphos and eight UK airports throughout the year, adding another option for low fares between Cyprus and the UK.

10 | GOLD | The Business Magazine of Cyprus

MY WAY

Demetris Taxitaris

General Manager MAP S.Platis

HAVING WORKED IN VARIOUS COMPANIES AND ORGANISATIONS IN CYPRUS AND ABROAD, HE HAS GAINED WIDE MANAGEMENT EXPERIENCE, SETTLING FOR A STYLE THAT IS HANDS-ON BUT DOES NOT FALL INTO THE COMMON TRAP OF MICROMANAGEMENT. FINDING THE RIGHT BALANCE BETWEEN PROFESSIONAL AND FAMILY LIFE IS NOT EASY, ESPECIALLY IN TODAY’S ‘ALWAYS-ON’ ENVIRONMENT BUT FRIENDS, FAMILY AND A LITTLE EXERCISE CERTAINLY HELP.

“I “M “I try to be adaptable, adjusting to circumstances.

I tend to have a handson approach and will be involved whenever required, without resorting to micromanagement. I like to be considered part of the team and able to assist when I’m needed.

This always involves a balancing act!”

“I

have been involved in a number of positions in different types of associations and institutions.

This diversity provided me with many experiences and tools for the future and has allowed me to grow. At the same time, the experience I gained during the initial stages of my career in London – the world’s financial centre – was priceless.”

y prime goal has always been to be respected professionally by colleagues, associates and competitors and to be a point of reference for these people for what I do. If reaching this stage is tough, continuously improving further and avoiding pitfalls is even tougher.

“M

anagers often focus too much on micromanagement, including monitoring the work of others, instead of strategic matters and decisions. A good test is to think at the end of every day how long you have spent on matters adding value and what else you could do to add more value.”

“A

chieving a healthy balance between life at work and at home is always a great challenge!

Nowadays it is hard to ensure that, when you are physically with your family, you are actually there in spirit too – we carry our business with us at all times on our smartphone and clients and associates can reach us 24/7.”

relax with friends, family and d as mu exercise! I try to spend much time with my family as possible, going home every evening before the children’s bedtime. More quality time with them is easier during weekends, of course. Meeting good friends for a drink or bites always works too! And I regularly go for a run each. at the park or by the beach.”

“A

t home I could happily watch NatGeo Wild and Ultimate Survival with Bear Grylls for hours. In the past, I would dive into a good book, too, but this is increasingly more challenging as time becomes more of a scarce resource, so I am saving a number of them for the holidays.”

Demetris Taxitaris is the General Manager of MAP S.Platis, and a founder and Chairman of Symmetria F.S. Ltd. He was Head of Asset Management at Bank of Cyprus Group in Nicosia until August 2013. An Associate Chartered Accountant, he is on the Board SJ XLI -RWXMXYXI SJ 'IVXMÁIH Public Accountants of Cyprus (ICPAC) and a member of the Board of the Cyprus Investment Funds Association (CIFA).

www.goldnews.com.cy | GOLD | 11

FIVE

MINUTES WITH PHILIPPOS MANNARIS

H

ow important is it for successful companies to invest in pension and provident funds nowadays? How does AON Hewitt help them?

In the future, retirement savings are set to become an even more important source of income for employees than they are today.

While state pension benefits are valuable, they are not enough to provide retirement income adequacy. This leaves employees unprepared for their retirement. As pressures grow to assist employees to meet that savings gap, employers should encourage saving and promote financial wellness by introducing good quality cost-effective solutions which deliver good benefit outcomes for members.

Creating better Provident Funds has been a key aim for us for some time. It means delivering a more effective investment approach, capable of greater speed of action, using best-in-class fund managers and better diversification, all with the ultimate aim of better member outcomes.

employers the benefit of a more cost-effective institutional solution.

Last year you launched the MAP fund in Cyprus as part of the company’s vision of creating better provident funds. Has the response measured up to your hopes and expectations?

Our clients in Cyprus have welcomed the new solution, which provides them with a new alternative for their Provident Fund management strategy. As it enters its 3rd year of operation, the MAP Fund currently manages benefits for over 50 employers and approximately 800 members with annual contributions of €2.5m. The MAP fund is an Aon Retirement Mastertrust, providing access to Aon’s global investment capability where Aon takes responsibility for the delivery of retirement benefits for our clients’ employees. The MAP Fund gives employees and

What do your clients require from their pension plans and how does Aon Hewitt respond to their needs?

Our clients want zero bias, better diversified portfolios, more effective risk management, operational excellence and features that help employees make better decisions. That’s exactly what Aon Hewitt delivers via our suite of retirement solutions. Our Provident Fund solutions, including MAP, draw on a combination of Aon’s expertise in Defined Contribution within Europe and globally, our market-leading investment expertise, and our credentials in building strong governance frameworks. Partnering with Aon Hewitt is one step that employers may take to improve their plan governance and performance and to meet their monitoring and reporting

12 | GOLD | The Business Magazine of Cyprus

Partner, Global Retirement & Investment Practice, Aon Hewitt

requirements. Employees benefit from economies of scale and innovative features designed to improve benefits on leaving service s or o retirement.

How H important is FinTech to Aon Hewitt and a to the sector in general?

Many M employers have realised the importance of financial wellness for their p employees, a key part of which is ensuring e that employees are able to make informed decisions about their retirement savings. Our Retirement solutions, including the MAP R Fund, address this challenge with Aon’s F unique communications tools and technolou gy. g Intelligent, trigger-based communications let l employees make timely decisions, while our o online member portal is intuitive, easy to navigate and provides clear information.

What are the challenges currently facing the private provident fund sector and how can it be improved in the future?

Running a Provident Fund is getting increasingly onerous, complex and costly. The nature of Defined Contribution schemes is that a member’s individual pot at retirement is directly influenced by both the investment approach adopted and market movements at any one time. That brings the need for adopting the most efficient approach very clearly into focus. Retirement income adequacy has become a hot topic for most employers, who realize they face serious workforce issues if their employees fail to adequately prepare for retirement. Employees increasingly acknowledge their responsibility for preparing for retirement, yet often do not take the steps needed to do so adequately.

Aon Hewitt’s retirement solutions keep employers and employees ahead of the current issues in retirement strategy and planning and give members the best chance of achieving the best outcomes.

26

ACCOUNTANCY CYPRUS

Building a strategy today can empower your tomorrow

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Multi-Employer Aon Hewitt Provident Fund

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QUOTES OF THE MONTH

They Said What?

Some of the more striking remarks made by and about Cypriots over the past month.

“WHEN THE PREMISES OF THE TEACHERS’ UNIONS ARE LARGER AND GRANDER THAN OUR SCHOOLS, I’M SORRY BUT THE COUNTRY IS IN TROUBLE.” NICHOLAS PAPADOPOULOS

“WE AGREE WITH EDEK ON A SHARED GOAL, WHICH IS NONE OTHER THAN CHANGE AND OUSTING THE PRESENT ADMINISTRATION.” DIKO leader Nicholas 7HWHKVWV\SVZ ÄUHSS` JVTLZ JSLHU HUK HKTP[Z [OH[ [OL ZV JHSSLK JLU[YL WHY[PLZ HYL UV[ L]LU [OPURPUN HIV\[ ZVS]PUN [OL *`WY\Z PZZ\L

“THIS ALLOWANCE WAS APPROVED BY THE GOVERNMENT IN 2005 AND GIVEN TO THE GREEN PARTY FOR REASONS OF EQUALITY, SINCE WE DID NOT HAVE A DRIVER OR A GUARD AS THE OTHER PARTIES HAVE FOR THEIR LEADERS. WE EMPLOY SOMEONE WITH THIS MONEY.” .YLLU 7HY[` 47 .LVYNL 7LYKPRPZ L_WSHPUZ ^O` H WHY[` ^P[O UV KYP]LY OHZ ILLU YLJLP]PUN H KYP]LY»Z HSSV^HUJL VM Á H TVU[O MVY [OL SHZ[ `LHYZ 0[»Z HSS HIV\[ LX\HSP[`

*VUZ[HU[PUVZ *OYPZ[VÄKLZ 9LJ[VY VM [OL <UP]LYZP[` VM *`WY\Z ZWLHRZ MVY L]LY`VUL L_JLW[ [OL [LHJOLYZ» \UPVU SLHKLYZ ^OV VI]PV\ZS` ULLK [V IL JVTMVY[HISL ^OLU ^VYRPUN V\[ OV^ [V PTWYV]L [OL HSYLHK` Z\WLYI LK\JH[PVU [OH[ [OLPY TLTILYZ HYL WYV]PKPUN

CONSTANTINOS CHRISTOFIDES

GINA COHEN

“WHEN OUR MINISTER MEETS WITH THE CYPRIOT MINISTER AND THE GREEK MINISTER TO DISCUSS THE EAST MED PIPELINE, I THINK THEY’RE DOING IT FOR THE PHOTO-OP.”

0ZYHLSP NHZ JVUZ\S[HU[ .PUH *VOLU YL]LHSZ TVYL HIV\[ [OL MLHZPIPSP[` VM [OL WYVWVZLK WPWLSPUL SPURPUN *`WY\Z [V *YL[L THPUSHUK .YLLJL HUK 0[HS` [OHU HU` VM [OL WLVWSL ZOL TLU[PVUZ ^V\SK KHYL [V

“WE NEED TO TALK WITH AND LISTEN TO EACH OTHER, RATHER THAN SPEAK PUBLICLY ABOUT EACH OTHER.” >PZL ^VYKZ MYVT +0:@ *OHPYTHU (]LYVM VM 5LVWO`[V\ PU YLZWVUZL ZL [V VWWVZP[PVU WHY[` JYP[PJPZT V]LY OPZ KPUULY LY ^P[O ;\YRPZO *`WYPV[ SLHKLY 4\Z[HMH (RPUJP P

AVEROF NEOPHYTOU

“SHOPS ARE OPEN SEVEN DAYS PER WEEK. THIS CANNOT CONTINUE UE FOREVER... HOW CAN STAFF NUMBERS MBERS HAVE INCREASED WHEN EXPENDITURE ITURE ON SALARIES HAS FALLEN COMPARED ARED TO PREVIOUS YEARS?” 0Z P[ YLHSS` ZV OHYK MVY (2,3 47 (UKYLHZ -HRVU[PZ [V VU[PZ [V \UKLYZ[HUK [OH[ MVSSV^PUN OPZ WHY[`»Z TPZOHUKSPUN VM [OL UN VM [OL LJVUVT` WLVWSL HYL LHYUPUN SLZZ [OHU ILMVYL& VYL&

ANDREAS FAKONTIS

GEORGE PERDIKIS

14 | GOLD | The Business Magazine of Cyprus

“WE ARE TAUGHT, GROWING UP, TO AC ACCEPT CORRUPT PRACTICES AS LONG AS THEY DO NOT AFFECT US PERSONALLY, T AND THAT EVERYTHING HAS ITS PRICE” A (\KP[VY .LULYHS 6K`ZZLHZ 4PJOHLSPKLZ VUJL HNHPU ZOV^Z H JSLHY \UKLYZ[HUKPUN VM OV^ [OL H]LYHNL *`WYPV[ [OPURZ HUK ILOH]LZ ODYSSEAS MICHAELIDES

SPECIAL PROMOTIONAL FEATURE

Limassol Del Mar

EXCLUSIVE SEAFRONT

LIVING

LIMASSOL DEL MAR, A WORLD-CLASS SEAFRONT DEVELOPMENT IN CYPRUS, OFFERS RESIDENTS BREATHTAKING SEA VIEWS, A LUCRATIVE INVESTMENT OPPORTUNITY AND FIRST CLASS AMENITIES

16 | GOLD | The Business Magazine of Cyprus

A

n iconic new development, Limassol Del Mar, is currently underway in Limassol. Due for completion in summer 2019, the highly anticipated project comprises a selection of twoto six-bedroom properties with generous living spaces. In addition to an enviable location, residents will also enjoy an DUUD\ RI Ă°YH VWDU IDFLOLWLHV LQcluding a spa, gym, residentsâ&#x20AC;&#x2122; lounge, concierge and a clubhouse, as well as an outdoor and an indoor swimming pool. Designed with Cyprusâ&#x20AC;&#x2122; illustrious history â&#x20AC;&#x201C; as a play-

ground to the gods â&#x20AC;&#x201C; in mind, Limassol Del Mar epitomizes exclusive seafront living. ResiGHQWV ZLOO QRW RQO\ EHQHĂ°W IURP Ă°UVW FODVV DPHQLWLHV VWXQQLQJ views and direct access to beautiful sandy beaches; they will also live amongst luxurious interiors designed to imSHFFDEOH VSHFLĂ°FDWLRQV Located in the heart of Limassolâ&#x20AC;&#x2122;s coastal promenade, an area that is currently undergoing substantial transformation, Limassol Del Mar will stretch across an impressive 170 metres of sea frontage, allowing unobstructed sea views from the ground to the top ĂąRRU DSDUWPHQWV 8QOLNH DQ\ other destination in this fastevolving city, Limassol Del Mar is soon to become the byword for the ultimate shopping experience in Cyprus and a destination in its own right for local and foreign visitors. Le

Plaza Del Mar, a commercial RĎ&#x192;HULQJ RQ WKH Ă°UVW ĂąRRU RI WKH development, will play host to a signature restaurant, cigar lounge, wine bar and an exclusive collection of high- end boutiques. The iconic building was designed by Benoy, the internationally acclaimed architects, with the subtle wave IRUPV RI WKH VHD GHĂ°QLQJ WKH residentsâ&#x20AC;&#x2122; living spaces. Fullheight glazing glides will open VHDPOHVVO\ OLQNLQJ WKH LQWHULRU space to the exterior terraces of each apartment, with glass balustrades ensuring continuous uninterrupted views of the sea and beyond.

A destination with international appeal, Cyprus can be reached in just over four hours from London, Moscow and Dubai, with frequent diUHFW ĂąLJKWV 0RUH WKDQ of phase one at Limassol Del Mar is already sold out.

FOR MORE INFORMATION OR TO ARRANGE A PRIVATE APPOINTMENT CONTACT: Limassol, Cyprus Tel.: +357 25 510 888 E-mail: info@limassoldelmar.com Website: limassoldelmar.com

| FINANCE |

LESS PERCEIVED

CORRUPTION AND SECRECY CYPRUS STILL NEEDS TO WORK ON ITS REPUTATION IF IT IS TO BE CONSIDERED A FINANCE CENTRE, SAYS MARK YEANDLE, LEAD AUTHOR AND CO-CREATOR OF THE GLOBAL FINANCIAL CENTRES INDEX (GFCI).

By John Vickers

18 | GOLD | The Business Magazine of Cyprus

L

ondon, New York and Singapore top the latest (21st) Global Financial Centres Index (GFCI), which is compiled and published twice a year by Z/Yen Group and sponsored by the Qatar Financial Centre Authority. Few will be surprised by the highest-ranked centres but anyone who thinks that Cyprus is viewed as a global financial centre will be disappointed to discover that the country is currently ranked 79th out of 88 on the Index.

The GFCI is based on over 29,000 financial centre assessments from an online questionnaire together with over 100 indices from organisations such as the World Bank, the OECD and the Economist Intelligence Unit. It is compiled and published twice a year

by Z/Yen Group and sponsored by the Qatar Financial Centre Authority. The ranking is an aggregate of indices from five key areas of competitiveness: Business Environment, Human Capital, Infrastructure, Sector Development and Reputation.

According to Mark Yeandle, cofounder of the Index, one of the reasons that Cyprus is ranked so low is that it needs more people assessing it on the GFCI questionnaire – the number of assessments is going down – but, more seriously, it also needs to do some aggressive marketing and to resolve

reputational issues, which have not been helped by the recent US media focus on the financial dealings of President Donald Trump’s former campaign manager, Paul Manafort.

Gold: What made you decide to create the first Global Finance Centres Index?

Mark Yeandle: Working with the Corporation of London, we did comparative studies on a few cities from time to time and we felt that a regular barometer of financial centre competiveness would be more useful. The GFCI was started in 2007.

Gold: What kind of response did you receive when you published the first one?

M.Y.: Huge interest and press coverage – we also won assignments for more in-depth studies for individual centres.

Gold: Have you changed your coverage and methodology over the past 10 years?

M.Y.: Not really.

CYPRUS HAS A POOR REPUTATION IN SOME COUNTRIES TOP 10

GLOBAL FINANCE CENTRES 1

LONDON

2

NEW YORK

3

SINGAPORE

4

HONG KONG

5

TOKYO

6

SAN FRANCISCO

7

CHICAGO

8

SYDNEY

9

BOSTON

The methodology has been improved slightly and we now study over 100 centres (GFCI 1 had 46).

Gold: Who makes up your target audience for the Index?

M.Y.: The finance industry, location decision makers, local and national governments and policymakers.

Gold: Are you surprised that, despite various unexpected events in 2016, the Top 5 financial centres in the latest Index remain unchanged?

M.Y.: No. It is no surprise that the top centres are all successful, cosmopolitan centres in their own right. Successful people live in successful places and you cannot have an international financial centre without international people.

Gold: Do you think that London will continue to top the Index during and after the forthcoming Brexit negotiations?

M.Y.: I think it will remain very high but perhaps not at the

10

TORONTO www.goldnews.com.cy | GOLD | 19

| FINANCE |

YOU CANNOT HAVE AN INTERNATIONAL FINANCIAL CENTRE WITHOUT INTERNATIONAL PEOPLE very top. Even if there is a ‘hard’ Brexit, London will still have the same good regulations, common law, time-zone, Sterling, the English language, a good availability of skilled people, flexible labour laws and many other assets that Brexit will not remove all at once.

Gold: Many people in Cyprus consider that, despite its small size, the fact that it is home to many Forex brokers and is starting to attract more investment funds means that it can consider itself a finance centre. Its low ranking on the GFCI (79th out of 88) suggests otherwise. What’s your view?

M.Y.: Cyprus has a poor reputation in some countries and is not known as a financial centre in others. Marketing would be key, as would working out real strengths and weaknesses.

Gold: I’m curious about the way you divide the centres geographically. You include Cyprus and Athens in ‘Eastern Europe & Central Asia’, for example.

Wouldn’t it make sense to have all the EU member states together?

M.Y.: Most are in Western Europe but the ones to the east are in Eastern Europe. We include Malta in Western Europe.

Gold: You also distinguish between Global, International and Local Centres and you include Cyprus in a list of “evolving local centres”. What does this mean?

20 | GOLD | The Business Magazine of Cyprus

M.Y.: We grade a centre as Global, International or Local depending on how many respondents from how many other countries assess it. We ask people to only assess a centre if they are familiar with it.

Global centres have strong international links. The other axis measures the breadth of financial services offerings.

Major centres are strong in banking, investment management, insurance, etc. Other centres often specialise in one or two sectors (e.g. Bermuda in re-insurance). An evolving centre – the category in which Cyprus is placed – is neither a specialist nor a multi-sector centre but one that needs to grow and establish a greater international network.

Gold: Given your

EASTERN EUROPE AND CENTRAL ASIA CENTRE RANK WARSAW 41 TALLINN 42 RIGA 45 ISTANBUL 66 PRAGUE 69 BUDAPEST 70 CYPRUS 79 ALMATY 80 MOSCOW 85 ST PETERSBURG 86 ATHENS 88

EVOLVING CENTRES ALMATY ATHENS BAHRAIN CYPRUS DALIAN DOHA JAKARTA MALTA MANILA MAURITIUS MONACO PANAMA REYKJAVIK RIYADH ST PETERSBURG

expertise and experience of the world’s financial centres, what, in simple, terms, would you advise the authorities in Cyprus to do if the country is to obtain a higher ranking on future editions of the GFCI? M.Y.: The number of assessments of Cyprus that we receive is going down so it needs to get more people to assess it on the GFCI questionnaire.

Overall, Cyprus needs to reduce the perceived level of corruption and reduce or eliminate secrecy. We have conducted many detailed studies for financial centres and one of these would be very useful for Cyprus. It would allow us to identify genuine weaknesses and strengths and help Cyprus plot a path forward.

| DIGITAL BANKING |

WELCOME TO THE ERA OF OPEN BANKING

T

ell us about your current position and your role as an advocate for women in tech.

Natasha Kyprianides: I’m a digital banking veteran, focused on effecting ideas into business growth and compelling products for customers in the digital age. I currently head up the group’s Digital Banking & Innovation practice at Hellenic Bank and I’m accountable for digital banking business across all verticals. I’m a key change agent driving the customer-facing digital agenda; and responsible for the definition and delivery of innovative digital product solutions across the bank’s touch points. As an advocate for women in tech, my accomplishments include being profiled for the FemTech Leaders global series, getting listed on the Kurtosys: Women in Finance Power 100 and Innovate Finance’s Women in FinTech 2016 Powerlist. More recently, I was shortlisted for Banking Technology’s Woman In Technology Award 2016 for my contribution to the industry.

Gold: What are Open Banking and PSD2 all about?

N.K.: The EU appears to have identified Open Banking as one potential solution to an area of slow innovation and market development that seems to be holding back the competitiveness of its trading bloc.

PSD2 is the regulatory intervention that is introducing Open Banking and it will

NATASHA KYPRIANIDES, GROUP HEAD OF DIGITAL BANKING & INNOVATION, HELLENIC BANK ON THE IMPORTANCE OF APPLICATION PROGRAMMING INTERFACES TO BANKING.

compel banks to connect their digital assets to regulated entities outside their organisations through an Application Programming Interface (API) layer.

Gold: As an early adopter of the Open Banking model, in what ways is Hellenic Bank looking to reap the benefits?

N.K.: Most banks understand the importance of digital and many realize the key role of APIs in making services available on mobile devices and the Web. However, much of the industry still lacks maturity when it comes to API programmes and is stuck on creating ad-hoc APIs that digitize simple functions. Any bank that wants to truly succeed will need to build a new technology platform based on open APIs. API Banking will enable partners to benefit from banking as a service (BaaS) and unlock new business models. The BaaS platform enables non-banks to quickly deploy financial products without having to deal with banking regulation and set-up requirements. Our open APIs act as the entry-point to our underlying technology, products and services. Third party developers that choose to team up with us will be able to build their own digital bank delivered via an app (mobile/web), integrate our products/services into third-party platforms and design bespoke experiences. We are fostering this revolution through partnerships, open innovation and co-creation to form an ecosystem of third-party applications.

Gold: What does the Hellenic Bank API Banking platform provide?

ANY BANK THAT WANTS TO TRULY SUCCEED WILL NEED TO BUILD A NEW TECHNOLOGY PLATFORM BASED ON OPEN APIS

N.K.: We have developed six open APIs that are compliant with the PSD2 regulation: • Authentication • Single Payments • Single Payments in Rubles • Mass Payments • Mass Payments in Rubles • Account Reporting We have also put together a dedicated microsite to provide the necessary accessibility and guidance on the 3-step process: Discover our open APIs and explore how they work by using the detailed documentation that is readily available without having to contact anyone at the bank Experiment in a dedicated Sandbox environment, by utilizing the tools to execute an idea, simulate, prototype and test it to see how it’s going to work Go Live (launching soon) by connecting apps to the live environment - after undergoing an approval process - to start performing and tracking real transactions.

You can try it here: https://openapis.hellenicbank.com www.goldnews.com.cy | GOLD | 21

| BANKING |

ASTRO

BANK

MAURICE SEHNAOUI EXPLAINS WHY HE WANTED TO ACQUIRE PIRAEUS BANK CYPRUS AND REVEALS THE INSPIRATION BEHIND ITS NEW NAME.

By John Vickers

22 | GOLD | The Business Magazine of Cyprus

A

stroBank, the newest name on the Cyprus banking scene, was officially launched on March 29 at an event attended by Finance Minister Harris Georgiades. The bank – formerly Piraeus Bank Cyprus – was acquired at the end of 2016 by a group of international investors led by the prominent Lebanese banker and former energy minister, Maurice Sehnaoui, who has been active in Cyprus since February 2011, when the Lebanese bank BLC, of which he was Chairman and General Manager, acquired almost 94% of the share capital of USB Bank.

An official AstroBank announcement described the acquisition of Piraeus Bank Cyprus as “a sign of confidence, not only in the bank itself and the national economy but also in Cyprus’ business-friendly environment,” and this was echoed by Sehnaoui when he spoke to GOLD. “When a country’s people and government succeed after a crisis, it’s fantastic,” he enthused. “It means there is a dynamic for a new era. I didn’t have the same mindset before the crisis but after it, I decided to take my banking activities further. I always look where I believe there is an opportunity and that opportunity

I call Cyprus ‘The Star of the Mediterranean’ and I firmly believe it is here in Cyprus today.”

Having decided to acquire Piraeus Bank Cyprus, Maurice Sehnaoui knew that a new name was required, since it would no longer be a subsidiary of the Athens-based institution.

His long-term admiration for Cyprus, reinforced by the positive impression created by the country’s successful exit from the Economic Adjustment Programme, inspired the name AstroBank (astron is the ancient Greek word for ‘star’.)

“I call Cyprus ‘The Star of the Mediterranean’ and I firmly believe it,” he told GOLD, adding, “It has the capacity to be a strong regional banking jurisdiction as well as a local one and AstroBank intends to play a role in this.”

He explained that, while the new bank will offer all the traditional retail and corporate banking services to the local market, it will of necessity differentiate itself from the competition.

“When you come into an established sector with new energy and the capacity to innovate, you can achieve a lot by bringing a new way of think-

ing,” he said. “My personal experience tells me that I can do this and I am sure that the bank, which has very good people, can do it too. We will incorporate investment banking thinking into the retail and corporate areas. I am ready to face the competition but I never act because of what I see competitors doing. We will create our offering and do everything we can to ensure that people know about AstroBank and what it can do for them.”

In reply to a question about the fact that many observers see the sector as already having too many banks, Sehnaoui said that he is well aware of this widely held view. “Everyone says this but not me!” he stated. “I believe that eventually there will be a lot of mergers to consolidate the sector but I am confident in what we have.

Every bank has ambitions to grow faster than its competitors and we are no different.

When we reach a critical size, we too will have to start thinking about mergers and acquisitions. You can be sure that we will be looking at this too.”

www.goldnews.com.cy | GOLD | 23

| CONFERENCE |

T

he Consulco Group of companies organized an event entitled The London Property Outlook After Brexit on Tuesday, 28 March at the Hilton Cyprus. More than 350 participants had the opportunity to listen to distinguished speakers who discussed the UKâ&#x20AC;&#x2122;s new Inheritance Tax and focused on how it will affect Cypriots and non-UK residents owning UK property. Eminent British and Cypriot professionals with years of presence in the field of Real Estate and Taxation made further analysis, presenting a complete picture of the current situation with suggestions and alternative way to mitigate the impact of Brexit on the UK and Cyprus.

2UJDQL]HU

6HFUHWDULDW

Janet Paterson, Charter Tax Consulting Ltd

Marios Hajiroussos, Consulco Group

David King, Consulco Real Estate Ltd

Michael Tannousis, Consulco d Finance Ltd

Stavriana na u, Antoniou, Consulco co Group

Panicos Tsailis, Tax Consultant

24 | GOLD | The Business Magazine agazine of of Cyprus Cyyp C pru r s ru

THREE RECENT TAX

DEVELOPMENTS

By Tonia Antoniou

1.

Intra-Group Financing Arrangements

The Tax Department has announced its intention to abolish the existing regime of the Minimum Margin Scheme for Intra-Group Financing on 1 July 2017. According to the current legislation, the minimum accepted margins for intra-group financing are in the range of 0.125%-0.35%.

According to the notification issued by the Tax Department, from 1 July 2017 all tax rulings confirming the applicability of the above profit margins on intra-group back-to-back financing arrangements will cease to be effective, and acceptable taxable profit margins on intra-group back-to-back financing arrangements will be determined based on OECD Transfer Pricing (TP) Rules.

The withdrawal of this Profit Margin Scheme is a result of the EU Code of Conduct for business Taxation and International Tax Developments (OECD/ G20 Initiative – BEPS). Subject to TP rules, yet to be finalized by the Tax Department, it is expected that Cypriot companies will be required to support the applicable profit margins with a TP study prepared by an independent expert.

Cypriot companies are extensively used in group financing and it is anticipated that these amendments will enhance the tax transparency of such companies.

2.

New Law Regulating the Settlement of Overdue Taxes

As from 3 February 2017, taxpayers are able to settle their overdue taxes in equal instalments, the number of which should not exceed: 54 instalments for overdue taxes not exceeding €100,000, with a minimum instalment of €50 per month; 60 instalments for overdue taxes not exceeding €100,000 with a minimum instalment of €1,852 per month.

The provisions of the law apply to Income Tax, the Special Defence Contribution, Capital Gains Tax, Immovable Property Tax, Stamp Duty, VAT and Inheritance Tax. Once the Tax Department and the taxpayer reach an agreement to settle the overdue taxes in instalments, no new interest or penalties will accrue and no criminal proceedings will commence, provided that the taxpayer meets his obligations. It is expected that the Commissioner of Taxation will issue a notification whereby relief will be provided on interest and penalties already imposed on overdue taxes, which will benefit taxpayers agreeing to settle their overdue taxes in instalments.

Any taxpayer wishing to enter the scheme should file an application to the Tax Department within 3 months from the date that the law came into effect.

| TAXATION |

Info: Tonia Antoniou heads the Banking & Finance department and the Corporate Department of the Limassol office of Michael Kyprianou & Co. LLC.

3.

Procedure for Claiming Non-Domicile status

The Tax Department has recently issued the relevant Tax Forms and established a procedure to enable Cyprus tax resident individuals to apply for the Non-Domicile status and to qualify accordingly. The relevant forms to be submitted are the following: T.D.38 (2016): A declaration of the Individual for Exemption as Non-Domiciled; T.D.38QA (2017): A questionnaire to determine Domicile of Origin; and T.D.38QB (2017): A questionnaire to determine Domicile of Choice. The first two must be submitted by all applicants, whilst T.D.38QB (2017) is also submitted by applicants who have a Domicile of Origin in Cyprus and have been Cyprus tax residents during any of the years from 1995 to 2014. In addition to the forms, certain supporting documents are also requested as evidence, such as rental agreements, bank statements, utility bills, employment agreements, etc. The relevant forms and documentation should be submitted to the Returns Administrations Section of the local Tax Department Office where the individual’s tax file is maintained.

Submission should take place during the first year in which the applicant acquires income from dividends, interest or rent for which he wishes to claim Exemption from the Special Defence Contribution. In relation to individuals who have a Domicile of Origin in Cyprus and have been Cyprus tax residents during any of the years from 1995 to 2014, the relevant forms and documents must be re-submitted every three years.

SPECIAL PROMOTIONAL FEATURE

THE RENAISSANCE

As

from the 1st of March 2017, it is a reality: through a French initiative, Arthur Andersen is reconstituted, commencing global operations in all five continents.

Arthur Andersen encompasses offices in the following countries & states from the first day of their launch: United States (Chicago, Houston, New York, San Francisco), Europe (Cyprus,

26 | GOLD | The Business Magazine of Cyprus

France, Greece), India, Brazil, the Middle East (Saudi Arabia, Bahrain, Dubai, Kuwait, Lebanon, Oman, Qatar), Egypt, Indonesia and Nepal.

Discussions are underway for setting up offices in China, Canada, Australia, Israel, Russia, Ukraine and in a number of countries in the European Union.

After receiving more than 200 candidacies since the launch of their campaign for affiliation last June, interviews for selecting its first members were conducted in Paris and around the world.

“In each country, we are setting up an inter-professional member firm with high-quality players who are fully up to meeting the current needs of clients with

a focus on a vision of the future, while maintaining the spirit and historical values of our historic firm founded in 1913 in Chicago”, said Stéphane LaffontRéveilhac, Global Managing Partner.

Since 2013, the firm has been reconstructing on the basis of an innovative business model and a sound ethical, governance and legal framework. Arthur Andersen’s business plan has been designed very carefully and it will be implemented in two phases, starting with the development of the network in all major countries of the world and then moving into the integration stage.

“Our firm is the rightful holder of the ‘ARTHUR ANDERSEN’ and ‘AN-

DERSEN’ historical trademarks, logos, visuals and slogans at a global level and are systematically instituting all legal initiatives necessary to defend our network and secure its development”, explains Carlo Brusa, Partner, Spokesperson and Pilot of the Project.

“We have a moral responsibility of success and loyalty towards the values and Alumni, both Partners and employees, of the firm that disappeared from the business world in 2002. Arthur Andersen needs to become once again a synonym for world excellence in Professional Service” concludes Véronique Martinez, Partner.

ABOUT US Since 2013, convinced by the power of the name “Arthur Andersen” and the values it conveyed for nearly 90 years throughout the world, a team initially made up of French nationals, decided against all odds to revive the only authentic international corporate professional service firm: ‘ARTHUR ANDERSEN’.

LEGITIMACY Arthur Andersen & Co. are the only owners at the global level of the historical ‘ARTHUR ANDERSEN’ and ‘ANDERSEN’ trademarks, logos, visuals and slogans.

A REVIVAL WITH WORLD COVERAGE FROM THE FIRST DAY Arthur Andersen is coming back to life worldwide: Currently, we initiate the launch of the network with the following presence, as a first stage: United States (New York, New York - San Francisco, California - Houston, Texas and Chicago, Illinois), Cyprus, France, Greece, India, Brazil, Saudi Ara-

bia, Bahrain, Dubai, Kuwait, Lebanon, Oman, Qatar, Egypt, Indonesia and Nepal. Discussions are underway for setting up in China, Canada, Australia, Israel, Russia, Ukraine and in a number of other countries in the European Union.

A TRUE INTERPROFESSIONAL NETWORK COMPOSED OF RIGOROUSLY SELECTED MEMBER FIRMS Arthur Andersen’s network of affiliated and legally independent member firms offers clients a top-of-the-market high added value range of solutions in Professional Services in the Accounting, Legal, Tax, Fiscal, Financial Advisory, IT, Business Consulting and valuations, Insolvency services, Transaction Services (Mergers & Acquisitions), Notarial Services as well as other services to companies and organizations for economic players of all sizes – private, public or associations – intervening on the principal sectors of global industries.

OUR PROMISE Over and above words, to guarantee a genuine response adapted to the new requirements of the ever-changing marketplace: excellence, ethical compliance, commitment, listening, creativity, control, responsibility, and confidence.

The firm has conducted an analysis of their past, and have drawn a road map to success from the lessons and errors that have been committed. Our new Ethics and Governance Committee has set up strict rules and regulations and a code of conduct that maintains the values of the past updated with the present worldwide rules and regulations.

OUR MANTRA Being constantly at the forefront of innovation so as to offer the best service

and the best client relations with fair and transparent invoicing and contained structural costs.

MULTI-CULTURAL EXECUTIVE TEAM The Directing team is made up of the two founders of the project: Stéphane Laffont-Réveilhac (Global Managing Partner) and Véronique Martinez (Partner), Carlo Brusa (Spokesperson and Pilot of the project, Partner with the legal firm CAB Associés) and Hélène Plumet (Attorney, Partner with the legal firm CAB Associés); They have been joined by Christos S. Christodoulou (President of the Ethics and Governance Committee) in charge of the network in Greece and in Cyprus, Nabil Istanbouli (Coordinator of development of the Middle East network, Member of the Selection Committee, former Arthur Andersen Partner for 20 years), based in Cairo, Egypt, Imad Hala (Managing Partner, North America; and former Arthur Andersen Managing Director), based in San Francisco, California.

A MISUNDERSTOOD LEGAL EPILOGUE IN ARTHUR ANDERSEN’S HISTORY The history of Arthur Andersen in the business world is too often summed up as follows: “this world leader in professional service which was founded in 1913, fell along with ENRON”.

But who remembers that in a decision handed down with a unanimous vote (9 for and 0 against – an extremely rare case) on 31 May 2005, the Supreme Court of the United States annulled all the charges against Arthur Andersen, reversing and remanding Arthur’s Andersen’s name? www.goldnews.com.cy | GOLD | 27

| RESEARCH |

Sustainable Development is the Key to Prosperity Janez J anez Potocnik, Potocn nik European Commissioner for the Environment (2009-2014) and European Commissioner for Science and Research (20042009) was in Cyprus recently. He spoke exclusively to GOLD about the importance of research and linking it to policymaking.

By Voula Loizou

28 | GOLD | The Business Magazine of Cyprus

L

ast month, the former European Commissioner for the Environment, Janez Potocnik, was appointed as a member of the Cyprus Institute’s Board of Trustees.

The Board of the globally recognised research and technology institution sets the Institute’s orientation and advises on its development. Potocnik, who is also a former European Commissioner for Science and Research, told GOLD that the Cyprus Institute is, “year on year, gaining more recognition” and expressed the belief that his EC experience and knowledge, combined with a PhD in Macroeconomics, make him a useful contributor to the Board.

He noted the importance of the work of organisations like the Cyprus Institute in areas as diverse as archaeology, climate change and biodiversity loss, given what he called “the serious challenges of the 21st century,” which also include water management and air quality.

Potocnik is a great supporter of the UN’s Sustainable Development Goals, which target 22 areas such as social inequality, health, education and the eradication of poverty. “They are a kind of recognition that we cannot continue to act as we did in the past,” he said. “We want to change not only unsustainable environmental and health systems but social and economic systems too.”

Potocnik believes that the link between science, Research & Development and policymaking is crucial, so the Cyprus Institute and other similar bodies are very important to the development of Cyprus and the broader region. “We

must always aspire to gain new knowledge and create new developments,” he told GOLD, “and, unfortunately, in difficult times research is sometimes considered less important than it really is but, in fact, it is the ticket that takes us to better times. We already have serious problems and if we don’t address them they could deepen. Science and research will lead us in the direction of solutions.”

As European Commissioner for the Environment (2009-2014), Janez Potocnik is still passionate about environmental challenges and how the EU is tackling them. “It’s a very long list, from climate change and biodiversity loss, to air quality and management of chemicals,” he said, “and the need to do something about them is clear since they influence the quality of the environment and impact on our health. The need for prudent management of resources, such

and, earlier, for Science and Research, Janez Potocnik was hesitant to do so, believing that “it is for others to judge” but he agreed to list a number of things of which he is personally most proud.

“In the research area, I would say the establishment of the European Research Council and, in the environmental area, I believe that my proposal to change the perception of waste from a problem to a new resource was a major contribution, not only to the environment but also to economic activity and competitiveness.”

Cyprus is among the lowest-ranked EU member states when it comes to the allocation of resources to R&D and innovation and Potocnik believes that the answer is to strengthen institutions like the Cyprus Institute and for the country to work on its advantages and strengths as a regional hub and an island.

“Islands are facing even more severe challenges than other countries,” he said,” and so it makes sense to organise your thinking activities and to connect science policy and what is happening in the research area with real life and with policymaking.”

Cyprus can improve its energy efficiency and its environmental ratings by systematically changing policies, he said, while acknowledging the difficulty involved in ending up with “stranded assets” – areas in which the country has already invested and wants to exploit, even if they are found to be inefficient. “That’s why changes are sometimes slower than we would like them to be,” he explained. “We know that they may not be properly contributing to a sustainable way of life. What is really important is to take a holistic view and a systematic approach: You know where you want to go so every step you take has to be in that direction.

Sometimes you will be disappointed that things are not moving as quickly as you would wish but, as long as you are going in the right direction, that is fine. This is something that every political party in Cyprus should be doing. It is about the future of your people and the future of Cyprus.”

Research is the ticket that takes us to better times as water in Cyprus, is more than obvious and many such problems have the same root problem: the economic system and its side effects.”

In Potocnik’s view, the very way in which economic activity is measured is inadequate. “Is GDP the right way to measure it? What about the value of natural capital?” he asked, before stating, “We live in a world where it is pretty obvious that financial capital is overvalued, human capital is undervalued and, in many cases, natural capital is not valued at all. That is the unfortunate reality that we have to master and change in the future”.

Asked how he would evaluate his achievements in his terms as European Commissioner for the Environment

www.goldnews.com.cy | GOLD | 29

| LEGISLATION |

I I D I e F i h M On T n o s I oriz H 30 | GOLD | The Business Magazine of Cyprus

The original Markets in Financial Instruments Directive (MiFID), which came into force in 2004, sought to remove barriers to cross-border financial services within Europe for a safer, more transparent and evenly balanced marketplace. From January 3, 2018, MiFID II will extend these requirements and affect everyone engaged in the dealing and processing of financial instruments, from business and operating models, systems and data to people and processes. Maria Athienitou, Director – Consulting at PwC Cyprus, explains what it will mean for Cyprus. iFID II will come into effect in January 2018.

What are the key changes that it will bring?

Maria Athienitou: MiFID II is one of the main reforms that will have a major impact on the financial services industry in the EU. MiFID II represents a major overhaul of the existing law, building on and extending the scope of MiFID I. This new legislation will drive fundamental changes in the European Securities Markets, as it will have a significant impact across the whole securities value chain, from front-office sales and trading, through to back-office reporting and all points in between.

The main changes that MiFID II will bring relate to significant enhancements to Customer Protection, with new requirements regarding suitability and appropriateness, safekeeping of client assets, best execution requirements, a broad ban on inducements, etc. There will also be changes in Trading and Reporting in areas relating to transparency requirements, transaction reporting and derivatives trading. MiFID II also introduces a new Organised Trading Facility (OTF) as well as new financial instruments, such as emission allowances. It also prohibits the marketing and sale of certain products and imposes additional requirements regarding the management of an organisation and heavier sanctions for infringements.

Overall, MiFID II will have a significant impact on how regulated entities conduct their business after January 2018.

Gold: How will banks and investment firms be affected?

M.A.: MiFID II is not a mere compliance exercise. There are major strategic implications for market opportunities and competitive advantages for organisations that plan early or potential revenue loss for those that fail to react. Organisations that we have been helping with MiFIDI II implementation, have identified potential impacts, such as the reduction of revenues resulting from the proposed ban on inducements for independent advice and the increased cost of doing business (this is expected to rise) and the need for significant changes to their IT infrastructure, as MiFID II’s complexity calls for carefully considered technological solutions.

II requirements through its own special Regulatory Navigator tool. Through it, the requirements of MiFID II can be completely reproduced, filtered and mapped to the organisation’s structures and circumstances, so that all aspects are taken into account for it to be able to assess what actions should be taken towards compliance. In effect, the Regulatory Navigator enables the organisation to manage the full complexity of MiFID II in a simple and structured manner.

Gold: It sounds as if MiFID II implementation is a very complicated process. Is it?

M.A.: MiFID II is indeed a complicated process and understanding its impact is essential before investing in changes to an organisation’s operating model and IT systems. One thing is certain: the 2018 deadline is close and many organisations still have a long way to go in order to be compliant by then. The solutions required are not quick fixes; they will have a significant impact on the way organisations do business. Banks and Investment Firms should move fast.

Waiting is not an option anymore.

Gold: How can firms in Cyprus act to ensure that they are ready for MiFID II? M.A.: Banks and Investment Firms should act now in order to ensure that they are ready by 3 January 2018.

The first step that they should take is to perform a Gap Analysis of MiFID II requirements against the organisation’s current state, identify ‘gaps’, and develop an action plan to assist them in the implementation process. PwC is assisting regulated entities to perform such a detailed Gap Analysis of MiFID www.goldnews.com.cy | GOLD | 31

| PRIVATE BANKING |

AstroBank

WEALTH MANAGEMENT AND PRIVATE BANKING IN CYPRUS

presents

RUS THE CYP

G& BANKIN MENT E T A IV R E P MANAG WEALTH E

Banking ENC CONFER ts the Cyprus PrievoanteThursday

n c onferen nk prese icosia.

AstroBa Management C n Park Hotel, N h to lt il a e H k n e W & AstroBa 017 at th 4 May 2 Main Sponsor: PwC r: o s n o p S er , Gold s, Report ers: IMH Organis sors: IN Busines n s o ru p p S y g the nication ntancy C Commu Online, Accou unded “Breakin -f U E e h T e ed by: rogramm Support Mould” p 32 | GOLD | The Business Magazine of Cyprus

CHARIS KYNIGOU, HEAD OF PRIVATE BANKING AT ASTROBANK, WILL CHAIR THE UPCOMING 9TH CYPRUS PRIVATE BANKING AND WEALTH MANAGEMENT CONFERENCE ENTITLED THE FUTURE OF WEALTH MANAGEMENT AND PRIVATE CLIENT SERVICES. HER UNDENIABLE EXPERTISE, GAINED FORM MANY YEARS OF EXPERIENCE IN THIS SPECIFIC FIELD, MAKES HER THE IDEAL PERSON FOR THE TASK. AHEAD OF THE CONFERENCE, SHE SPOKE TO GOLD ABOUT HOW THE SECTOR HAS CHANGED AND WHAT CYPRUS COULD DO TO RAISE ITS PROFILE AMONG HIGH NET WORTH INDIVIDUALS. By John Vickers

Y

ou will be chairing next month’s Cyprus Private Banking and Wealth Management Conference. What are the main objectives of the Conference?

Charis Kynigou: The main objectives are to provide an overview of the global Private Banking trends and to highlight the need for a major reform of the service in Cyprus if we are to maintain and grow our business. In addition, we present some niche investment products that aim to provide value to Private Banking clients.

Gold: Are the terms “Private Banking” and “Wealth Management” interchangeable or are they complementary?

C.K.: Nowadays both terms effectively mean the same thing so they are interchangeable.

Private Banking refers to servicing High Net Worth Individuals but does not always involve investing their assets. It is an exclusive service addressed to clients with liquid assets of more than €300,000 and it features Red Carpet Service, no-teller and concierge-like services.

Wealth Management has to do with the optimization of a client’s portfolio, always taking into account their risk appetite, investment horizon and financial goals through Execution or Advisory platforms.

Gold: Has Private Banking changed in any major way since you first became involved in this particular area?

C.K.: I have worked in the Private Banking sector since the start of my career and there have been many changes in various areas such as regulation, technology, types of investment products, access to more specialized products, globalization of the service, etc. I also believe that more and bigger changes are coming! Let’s not forget how dynamic the Private Banking sector is, since it has to do with human psychology and how it is affected by everything that goes on around us. For example, technological advances, Brexit and demographics, money laundering and terrorism finance, etc.

Gold: How important are Family Offices these days? Are they something that AstroBank intends to operate or are they in some way alternatives to the bank’s services?

C.K.: Family Offices are Private Banking firms that usually serve Ultra High Net Worth Indi-

viduals or families. They offer a total solution from Investment Advice, Insurance, Charity, tax services and legacy structures to daily cash management. Family Offices can be a very good client of AstroBank Private Banking but it is not our top priority to design a platform for servicing Ultra HNWIs. AstroBank will strategically invest more in Private Banking to expand and grow this segment of the business.

Gold: With low interest rates in many countries and a great deal of political uncertainty around the world, has it become much harder for wealthy individuals to grow their assets? Are they satisfied with simply maintaining their wealth?

C.K.: The main reason that clients are coming to Private Banking is to maintain their wealth and their standard of living. Clients are already rich. It is true that it is harder but, of course, opportunities for high returns exist in any market environment. What differentiates the strategy for each individual is their own profile and risk appetite. We work with each of our clients to construct a tailor-made strategy suitable for them and their own specific circumstances. If I were to specify a minimum baseline, it would be maintaining the real value of our clients’ wealth.

Gold: What can Cyprus as a jurisdiction and AstroBank as a financial institution offer High Net worth Individuals that they will not find elsewhere?

C.K.: Apart from the beautiful weather and food, Cyprus has a high level of sophistication in the broad financial sector and offers high quality service in all the related fields such as Accounting, Legal, Brokerage, Investment Advice, Insurance Products, etc. In addition, Cyprus has a beneficial tax regime relative to other jurisdictions, a prime geographical location with a very practical timezone, English is widely spoken and is also the business language used. The Private Banking department of AstroBank is differentiated as we work closely with each client and we are flexible enough to offer a service that is unique to the needs of each client. We are always there for our clients and we will travel and meet them many times throughout the year. Our aim is to form a long-term relationship with our clients based on trust and grow with them over the years. We offer a truly “open architecture” structure for investment products and, given the risk profile of each client, we can construct a tailor-made investment strategy that could include all asset classes. Another important

differentiation of Cyprus as a jurisdiction is that clients can enjoy the same services at more affordable fees than most traditional private banking jurisdictions (Switzerland, Luxemburg, Singapore, etc).

Gold: Cyprus was recently ranked 79th out of 88 financial centres around the world (in the Global Finance Centres Index 21), which suggests that we still have a long way to go. What can be done to raise awareness of the advantages of using Cyprus and a bank such as Astrobank in order to enhance the country’s reputation in this field?

C.K.: Cyprus has a unique advantage that thousands of international companies register in the country and open banking accounts in local institutions every year. Behind each of these companies there is at least one HNWI or, in many cases, an Ultra HNWI who does his/her wealth management in offshore Private Banking, and they are using our banking system as a payment mechanism only for their working capital. We need to develop the culture within each bank so that we make more and more assets stay in Cyprus for Private Banking. International Banking Units are already servicing HNWIs with the main difference that they are limited to their banking and corporate needs. If we could deepen these established relationships, then Cyprus would have a Private Banking hub that would generate additional substantial revenues for the economy and its local banking institutions. It is important to note that the Private Banking business does not require regulatory capital as it is comprises purely fee-generating units.

As a country we need to invest more in promoting Cyprus as a prime jurisdiction for offering Private Banking services to High Net Worth Individuals and their families. This is a unique market with very specific characteristics, and, to be successful, Cyprus needs to assign this promotion to individuals with specialized experience in this particular area.

AstroBank is prepared to invest substantially in upgrading the Private Banking service offered to its clients. We aim to offer a level of service that is equivalent to that offered by some of the very advanced international jurisdictions.

This includes state-of-the-art management systems, including the latest technological developments, securing further the confidentiality of our clients, investment expertise and synergies that add value to our clients. AstroBank will leverage its international experience and relations in order to enhance this and promote Cyprus. www.goldnews.com.cy | GOLD | 33

SPECIAL PROMOTIONAL FEATURE

STEPHANIDES LUXURY 34 | GOLD | The Business Magazine of Cyprus

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www.goldnews.com.cy | GOLD | 35

| COVER STORY |

The FinTech Revolution Is Here!

By Voula Loizou

36 | GOLD | The Business Magazine of Cyprus

On the following pages, we present the views of the following people:

1.,1* %$ Dr Charis Pouangare Director, Consumer & SME Banking Division, Bank of Cyprus Phillipos Leandrou Manager, Information Technology Services, Bank of Cyprus Charalambos Franjeskos *OPLM 0UMVYTH[PVU 6MĂ&#x201E;JLY Cooperative Central Bank Marios Papadopoulos Head of Markets, Cooperative Central Bank Dr. Antonis Houry Strategy and Business Development Manager, Wealth Management, Eurobank Cyprus Vlad Botic Group Chief Operating 6MĂ&#x201E;JLY /LSSLUPJ )HUR George Karagiorgis Group General Manager, Retail & International Banking, Hellenic Bank

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Artemis Pantelidou General Manager, EuroLife Aristos Stylianou Executive Chairman, General Insurance of Cyprus Demetris Sparsis Head of Insurance Division, Hellenic Group

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hat is popularly known as FinTech (short for Financial Technology) is closely linked to the concept of financial innovation, which can be defined as an act of creating and then popularizing new financial instruments as well as new financial technologies, institutions and markets. FinTech encompasses innovative financial solutions enabled by IT and is often used by start-up companies that deliver those solutions, although it is becoming increasingly popular among incumbent financial services providers, such as banks and insurance companies.

Digitization has already had a strong impact on the financial services industry, in part because financial products are almost exclusively based on information.

Examples are payment transactions or credit contracts which, in most cases, do not include any physical components. Another reason is that many processes are almost entirely implemented without any physical interaction, such as online payments or stock trading.

The evolution of the financial services sector due to developments in information technology (IT) and to the ongoing process of digitization is not only leading to a fundamental reorganisation of the financial services value chain with new business models and new actors entering the market; it is also changing consumer behaviour. FinTech is changing the way we pay, transact, invest, borrow or get insured and it has justifiably been described as a revolution, given the way it is affecting how people manage their financial affairs. In essence, FinTech has shifted the business focus from intra-organisational solutions to customer-oriented business-to-customer

For the banking industry the most important sector of the emerging FinTech market is financing, followed by payment, cross-processes, and investments.

On the other hand, FinTech solutions for the insurance industry cover insurance-related processes including client advice, life and non-life insurance, claims and risk management as well as cross-processes. Important areas are the use of Big Data analysis to offer more personalized premiums and automated policy management. In contrast to banking, most of the solutions in the insurance industry focus on B2C while C2C services are rare.

Furthermore, other non-banking institutions such as Forex companies, start-up companies and large IT companies often concentrate on single activities, and a single provider typically does not cover all banking processes.

C2C interaction models provide direct interaction among customers. In addition to the B2C and C2C interaction models, these institutions provide B2B Fintech services which focus on cooperation among banks and non-banks. Among the examples of these B2B services are digital client advice (advice), personal finance management (payments), digital identity or stock analysis and prediction (investments).

The FinTech revolution, which has been globally under way for some time, has finally arrived in Cyprus and it promises not only to make finance more secure for financial institutions but also better for their customers.

At present, it may be that no FinTech product comes close to matching the convenience and security of a current account in a bank but if FinTech platforms were ever to become the main sources of capital for households and firms, the established industry would be transformed and made safer. Financial institutions can only gain from this innovation.

1

:

(B2C), customer-to-customer (C2C) and provider-oriented business-to-business (B2B) approaches. FinTech solutions therefore differ according to the providers and the type of interaction, as well as the banking and insurance processes they support.

In Cyprus, the new digital era offers new opportunities for financial institutions. Cost reductions due to the automation of existing business processes and reduction in transactional costs, as well as opportunities to create new revenue streams by offering entirely new products and services, will lead to improved efficiency, minimize errors and, most importantly, contribute to higher profit margins and growth. FinTech also enables financial institutions to create a customer-driven environment and enhance customer satisfaction, while meeting increasingly demanding consumer expectations. It increases brand awareness and FinTech-driven institutions can improve their brand positioning by differentiating themselves from the competition. By using FinTech technologies, clients can connect with a product more easily, efficiently and cheaply, and this enables institutions to build customer relations and improve communication with their client base.

GOLD spoke to representatives of FinTech users in three sectors: banking, insurance and non-banking financial institutions.

Banks in Cyprus have started to adopt a number of innovative technological initiatives and to focus on the interaction between customers and banks or among customers only. Among the examples are Cloud based technologies, real life solutions, process automation, personalized services, omni-channel technologies, advanced data analytics and business intelligence, credit scoring engines, electronic signatures and even Artificial Intelligence.

Charis Mountis Global Head of Dealing, ForexTime Ltd Charalambos Psimolophitis CEO, FxPro Loucas Marangos CEO, TFI Markets

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www.goldnews.com.cy | GOLD | 37

| COVER STORY |

BANKING

6+$3,1* $1' &+$1*,1*

5(7$,/ %$1.,1* DR CHARIS POUANGARE DIRECTOR, CONSUMER & SME BANKING DIVISION, BANK OF CYPRUS

,

n your opinion, how much is technology changing retail banking in Cyprus and abroad?

Without any doubt, technology is already shaping and changing retail banking both in Cyprus and abroad. Banks are striving and preparing to adapt to the major technological advances affecting the banking

38 | GOLD | The Business Magazine of Cyprus

sector and to the changing habits and demands of the customers. They are also adapting to regulatory developments such as the Payments Services Directive (PSD2), which also affects the way we will bank in the future. Technology is changing the way we live, the way we listen to music, the way we communicate. Inevitably it will change the way we bank, making it more efficient, more personal, more effective and more exciting!

How do your clients benefit from the use of new technologies?

In todayâ&#x20AC;&#x2122;s fast-paced world, customers demand and expect a different and holis-

tic customer experience, more personal and tailored to their specific needs. They want to be served faster, more easily, anytime and anywhere. Not only that, but they want to have the same excellent service on every channel of service, be it a branch, the Internet or mobile. banks need to act swiftly to satisfy these changing customer demands. The use of mobile phones and tablets to access the Banksâ&#x20AC;&#x2122; digital service channels (Internet & Mobile Banking) for routine daily banking transactions has become a priority for any contemporary bank. When customers use digital channels, they pay less for the service while a number of on-

line transactions are free. Having said that, traditional bank branches will still have a role in the future but they also need to adapt technologically. Branches will be the beacons for lifetime events, such as opening your first current account, obtaining a mortgage or receiving financial advice.

How important is it to invest in new technologies and how much does your bank invest in them?

At Bank of Cyprus, investing in new technologies is investing in the future of the Bank. We have prepared an ambitious digitalization plan, which will prepare us to better serve our customers and delight them with the digital experience. It is a major financial investment that will understandably take time to fully materialize but it is an investment in our future.

What are the challenges and opportunities for banks when adapting to new technologies?

A major challenge is to make the right moves and choices when adopting new technologies. We hear daily of technological developments but the important thing is not just to be a “first-adopter” of anything new, simply to make an impression, but to be an “early adopter” of proven new technologies that will add true value to the customer.

New technologies enable us to keep our customers more satisfied and loyal in today’s competitive world and the competition is no longer just local anymore, nor even from other banks. We will consider strategic alliances with FinTech companies. Bank of Cyprus has a long history and a bright future, mainly because it is adaptive, flexible and efficient, with high calibre staff who can successfully take it into the technology era.

How important is it to ensure that Bank of Cyprus is safe and that the integrity of its data and assets is preserved?

We are very sensitive and extremely vigilant when it comes to the safety and integrity of both our data and our digital service. An example of this is a recent major investment already in service, namely the introduction of two new “soft” digipass devices. With the SMS digipass and

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active Internet & Mobile banking users who made 87 million digital transactions amounting to €16.1 billion. It is worth noting that digital banking transactions have now surpassed traditional in-branch transactions, constituting 60% of all our retail banking transactions.

How do you envision the future of retail banking, as regards the digital transformation of Bank of Cyprus?

I envision a challenging and successful future, with Bank of Cyprus leading the way, adapting to the ever-changing customers’ needs and continuing to focus on the customer experience. This will be achieved by providing a userfriendly, convenient, seamless digital experience through all our 1bank digital service channels as we want to make future banking “digitally simplified”.

In the future, all channels will blend together and Internet banking, mobile banking and branch banking will become one “omnichannel”.

the Digipass App, customers can authorize digital transactions from their mobiles or tablets with the use of a one-time, transaction-specific password. This investment has increased Internet & mobile banking transaction security and is fully aligned with EBA regulations and the PSD2 directive for stronger customer authentication, 10 months ahead of obligatory compliance with it.

How have consumers in Cyprus responded to the new technologies introduced by Bank of Cyprus?

Our customers have embraced and heavily use our 1bank digital service channels. In 2016, we had 260.000

www.goldnews.com.cy www w w..g .go go g old dne news.co om.c m.cyy | G GOLD OLD | 39 3

| COVER STORY |

BANKING

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(;3(5,(1&( PHILIPPOS LEANDROU MANAGER, INFORMATION TECHNOLOGY SERVICES, BANK OF CYPRUS

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hat are your bankâ&#x20AC;&#x2122;s main new tech initiatives?

Our tech initiatives are grouped in four main areas: Digital Transformation of the Bank; Modernisation of the current operational systems; Improving our compliance and regulatory framework; and Streamlining IT operations.

Each area includes several ambitious projects currently in the pipeline while a number of important projects are due to begin soon. For example, we are introducing new features and functionality to our digital channels, enabling our customers to work faster and do more online. At the same time, we are making important changes to improve our customersâ&#x20AC;&#x2122; experience at the branch by introducing a new

40 | GOLD | The Business Magazine of Cyprus

Customer Relationship Management system and important automation that will improve security and further reduce waiting time at the branch. We are working towards the modernisation of our Trade Business and Credit Card systems functions and we are upgrading our Payments system to improve our Straight Through Processing (STP) rate and provide even better service to international and local customers.

During the last year or so, we have completed a large number of infrastructure and security improvements that will better protect our customers and the bank against cybercrime. Finally, we have upgraded our Anti Money Laundering system and we are introducing a new Fraud Protection Management System that uses state-of-the-art predictive algorithms to protect our customers against fraud.

What measures has Bank of Cyprus taken to protect both the institution and its clients against cybercrime?

Bank of Cyprus takes cybercrime very

seriously. Our top management (Board of Directors and our CEO) has adopted a zero-risk appetite for cybercrime and sponsors and supports all initiatives taken by our Information Technology, Information Security and Operational Risk departments. We have made significant progress in raising awareness among our customers and employees about the risks involved. This is an ongoing programme that includes online learning, information campaigns and procedural improvements. At the systems level we have introduced a significant number of security checks and controls, including specialized systems that detect and prevent cybercrime attacks such as malware, system penetration and Denial of Service attacks.

Of course, we do not rest on these improvements. We perform regular checks and penetration tests to identify and address any potential risks. As mentioned earlier, we are introducing state-of-the-art technology that will further protect our customers against fraud. This technology has artificial

intelligence and machine learning capabilities and is able to detect behaviour that is not consistent with the normal behaviour of a customer and to block the execution of an unauthorized transaction.

Does the current policy and regulatory framework have an impact on the decision about which technologies can be adapted by Bank of Cyprus and, if so, how does this affect your overall IT strategy?

Certainly, the existing policy and regulatory framework is putting enormous pressure on all banks, since they are forced to comply with an ever-increasing set of regulations and this has an impact on technology as well. The current policy and regulatory framework is leading to a restructuring and rethinking of the technology requirements to maintain the banking business within the legality of regulatory compliance, while simultaneously addressing customer and shareholder demands.

We are currently focusing on data management, risk engine integration, application and business architectural redesign, risk application portfolio consolidation, customer/employee behavioural analysis, enterprise application and open-APIs, information transparency and reporting, and presentation capabilities. Our R&D is also evaluating exciting new technologies, such as biometric security and digital signatures. We work with all regulatory bodies and comply with the relevant regulations and, at the same time, we propose enhancements that are needed for an agile IT Strategy.

How do you decide which new technologies to invest in? Is the main criterion to satisfy customer needs or to follow global market trends?

The customer has always been the primary focus for any IT investment. In the digital age, we are fortunate to note that customer focus is aligned with other strategic goals such as securing our position in the increasingly open banking market or reducing bank costs.

We are constantly evaluating new technologies and prioritizing investment, depending on the benefits each technology will bring. Our primary focus is on enabling our customers to do more banking functions online and improv-

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As mentioned earlier, we continue to invest in branch technology, empowering both the customer and our employees to do more and to do it faster. Regarding global market trends, we consider it important to be at the forefront of the latest trends and emerging technology. We have established a structured R&D methodology that allows us to monitor technology trends, select the most applicable to

our market and make decisions as to when such technology should be implemented.

What is Bank of Cyprusâ&#x20AC;&#x2122; vision of digital transformation?

Our digital transformation includes two main pillars: providing our customers with the best service and experience using the digital channels and transforming the internal processes and customer service at the branch.

Regarding the first pillar, we are constantly upgrading our online and mobile services with new functionality and are planning to provide more features for our digitally enabled customers. As the penetration of smartphones continues, we believe that this will become the main customer service channel. We envision a time in the not too distant future when Bank of Cyprus customers will be doing all their banking from a mobile device. In addition, we continue to provide additional value to our customers through our loyalty schemes and they are becoming an important tool in our customersâ&#x20AC;&#x2122; daily lives. At the same time, we have an ambitious vision for transforming our internal processes and branch network, which will, in turn, have a positive impact on our customer service. In particular, we are further automating our procedures and eliminating all paper-based processes. Our new Business Process Management infrastructure includes simulation capabilities that allow us to identify inefficiencies and redesign some of our processes.

At the branch we are introducing a new Customer Relationship Management System and implementing automation that allows tellers to serve customers faster.

As a final thought, we believe that our digital transformation is part of the transformation of Cypriot society.

As the islandâ&#x20AC;&#x2122;s largest institution, we feel obliged to contribute towards this transformation, which will support the national effort toward structural economic reform. www.goldnews.com.cy | GOLD | 41

| COVER STORY |

BANKING

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,172 23325781,7,(6 MARIOS PAPADOPOULOS HEAD OF MARKETS, COOPERATIVE CENTRAL BANK

,

n your opinion, how much is technology changing retail banking in Cyprus and abroad?

Technology has been reshaping the retail banking industry in Cyprus and abroad over the last two decades. Clientsâ&#x20AC;&#x2122; increasing expectations, new market entrants, regulatory frameworks and Big Data, along with unlimited

42 | GOLD | The Business Magazine of Cyprus

technical capabilities, are formulating a perfect combination of challenges that banks need to take into consideration.

FinTech companies are making significant inroads in the banking industry. FinTech has leveled the financial playing field for clients, giving them easy access to advanced services and products like payments processing, alternative lending and investing services. At the same time, digital channels have become, for many clients, the major method by which they perform their banking transactions. The pace of innovation will continue to increase, and banks should find the way to leverage this innovation in order to remain competitive.

How do Cooperative Central Bank clients benefit from the use of new technologies?

Everyday life has significantly changed over recent years. Clients are looking for advanced services and products, as well as easy access to their bank accounts. Our aim is to satisfy those needs and to provide a seamless and consistent banking experience across our channels. Digital channels and automated processes lead to cost savings and, therefore, result in the ability to offer reduced-price or free services and products to our clients.

How important is it to invest in new technologies and how much does the Cooperative Central Bank invest in them?

Banks with the ability to invest in and integrate technology will be the leaders in this highly competitive industry. We understand the importance of investing in new technologies and this is the reason why a remarkable percentage of our annual budget is related to new technology development. This opens up opportunities to offer a complete range of services and products that meet our clients’ expectations.

What are the challenges and opportunities for banks when adapting to new technologies?

The main challenges that banks are facing are as follows: x Increased competition: Regulations are opening up market access to technology-enabled companies, which are changing the ways that clients obtain financial services. x Improving clients’ experience: Financial institutions must leverage their data and digital technologies to optimise the experience across channels and devices. x Going beyond the basics: A well-designed digital solution and communication between the bank and its clients can be key tools in building relationships and loyalty.

Our target is to turn challenges into opportunities. With the correct moves and collaborations, we are convinced that we will create a better organisation, become more efficient, build a better relationship with current clients and attract new ones.

How important is it to ensure that the Cooperative Central Bank is safe and that the integrity of its data and assets is preserved?

Trust and confidence require security.

Our goal is to protect the integrity,

availability and confidentiality of our information systems. For this reason, we are deploying state-of-the-art security technologies, which utilize a high level of defence and proactive monitoring for known and unknown threats.

To this end, the bank is investing in a lot of information security technology as well as in maintaining a high calibre team of security specialists.

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How have consumers in Cyprus responded to the new technologies introduced by your institution?

Clients are currently looking for new technologies to improve their lives.

Making technological changes is one of the biggest steps any organisation can take. In order to ensure smooth adoption, our bank adheres to the following rules:

in order to be able to better assist our clients.

How do you envision the future of retail banking, as regards the digital transformation of the Cooperative Central Bank?

In the near future, retail banking will be very different. The banking industry will continue to change significantly with regard to clients’ expectations, regulatory requirements and increased competition. We consider this change as an opportunity that will help us built a better organisation. Our vision remains the same: To provide excellent services and products that satisfy our clients’ needs.

Thus, we are working on providing the following to our clients: x An advanced digital platform that will allow us to offer a complete range of services and products 24/7. x Excellent service through digitised procedures. x In cooperation with our clients, we continue to develop innovate products and services, both for the branch network and our digital channels

x We always value our clients’ opinions. We develop innovative banking services and products and also help our clients adopt these new technologies.

In order to ensure that we create the right products and services, we always listen to our clients to deliver exactly what is expected. x It is vital that we provide the proper training methods to our staff

www.goldnews.com.cy w ww w.go goldn dnews e .co .com.c m y|G GOLD OLD D | 4433

| COVER STORY |

BANKING

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6<67(06 CHARALAMBOS FRANJESKOS CHIEF INFORMATION OFFICER, COOPERATIVE CENTRAL BANK

:

hat are the Cooperative Central Bank’s main new tech initiatives?

They are aimed at improving our internal infrastructure as well as looking into new Cloud-based technologies. We have been heavily investing in new systems and looking into solutions that deliver a real-time, personalized service to our customer base. Our top priorities include open and agile technologies, process automation for streamlining current processes and reducing error and human intervention, advanced analytics for real-time decisioning as well as providing omnichannel technologies delivering a unified customer experience.

What measures has the Cooperative Central Bank taken to protect both the institution and its clients against cybercrime?

Our bank has taken on a holistic approach to protect the enterprise by adapting a defence in deep philosophy and implementing state-of-the-art security technologies. By evolving our defence strategy and utilizing the latest prevention and detection solutions on a 24/7 basis, we are predicting, preventing, detecting and responding more quickly to the latest threats and zero day attacks. Our security programme aims at adding value and effectiveness to our business processes and supporting our business objectives. In addition, our organisation provides regular employee seminars on cybercrime awareness.

Does the current policy and regulatory framework have an impact on the decision on which technologies can be adapted by the Cooperative Central Bank and, if so, how does this affect your overall IT strategy?

Nowadays, it is vital for every banking or44 | GOLD | The Business Magazine of Cyprus

revenue streams from new products and services, increasing the positive recognition of the brand and simplifying internal procedures and efficiency.

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,1'8675< ganisation to have a policy and regulatory framework as part of its IT Strategy. Policy and regulatory framework requirements are addressed in isolation, whereas they could be viewed as opportunities. Thus, our aim is to improve the policy and regulatory framework through digitalization.

How do you decide which new technologies to invest in? Is the main criterion to satisfy customer needs or to follow global market trends?

Our decision on technology investment is based on the organisation’s overall strategic vision, which is customer satisfaction, cost reduction, creating new

What is the Cooperative Central Bank’s vision of digital transformation?

Digital transformation (DT) is becoming a hot topic for companies across the globe and it is today’s ultimate challenge in the banking industry. The financial crisis, regulation and technology adoption by customers and employees are pushing us towards Digital Transformation. It is very clear to us that a successful Digital Transformation involves many changes in all areas of the organisation. We believe that digital transformation is, first and foremost, a business transformation. People, not technology, are the most important piece of the digital transformation puzzle. We envision digital as a way to reshape boundaries, focus on profitable business areas and streamline middle and back office processes, while finding a way to balance digital and physical in the front-office perspective. The first step in this transformation is the creation of a multichannel strategy that includes the web as well as emerging technologies such as mobile and social media. Mobile applications provide a substitute for using an Internet website and social media will provide customer service on Twitter and advertising on Facebook. A new concept branch model will be developed, providing new ways of interacting and selling products to our customers via new technologies and self-service areas.

Our next digital objectives are to move into mobility, and to reach the ultimate level of customer satisfaction via a strong analytics strategy.

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| COVER STORY |

BANKING

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1(7:25. , GEORGE KARAGIORGIS GROUP GENERAL MANAGER, RETAIL & INTERNATIONAL BANKING, HELLENIC BANK

n your opinion, how much is technology changing retail banking in Cyprus and abroad? How do your clients benefit from the use of new technologies?

Technology is part of our everyday life and its effect on each one of us is massive and rapid. This could not be different from the way individuals and companies engage with the Bank for their daily banking transactions. All retail banks are faced with the big challenge of keeping up with technology as well as with customersâ&#x20AC;&#x2122; demands for remote online banking and the ability to access most banking products via the web or a mobile app. We strongly believe that the Cyprus retail banking environment will gradually evolve towards a more digital era.

What are the challenges and opportunities for banks when adapting to new technologies?

Although the challenges seem to be huge at the beginning, they can be overcome by the new opportunities given to the bank to offer existing and new products directly to customers at a lower cost, both to the bank and the customer, with reduced procedures and a process that leads to a better customer experience and also taps into the whole of the Cyprus market at a reduced cost, when

46 | GOLD | The Business Magazine of Cyprus

and where the customer wants. The transformation from the legacy banking system, operating through fixed branches with labour-intensive processes and increased fixed costs will not be easy. We strongly believe that is achievable and definitely must be made in order for the Bank to be able to compete for a highly technologically educated clientele. Changing culture will definitely be the biggest internal challenge that all banks will face.

How important is it to ensure that Hellenic Bank is safe and that the integrity of data and assets is preserved?

The security of data assets is paramount to sustaining the business of Hellenic Bank.

Protection against cybercrime is a continuous process managed by specialized people and there are ongoing investments in stateof-the-art technologies to treat the relevant risks in an effective manner.

How have consumers in Cyprus responded to the new technologies introduced by Hellenic Bank?

Over the years, Hellenic Bank has been successfully introducing new products and services to our customers based on new technology and innovating with new ideas introduced and tested in Europe. Our challenge is to keep this momentum going and

to provide our customers with the best that can be offered in products and services, so as to make their experience with our Bank unique, easy and fast.

How do you envision the future of retail banking, as regards the digital transformation of Hellenic Bank?

The future of retail must be aligned with the digital transformation as we cannot remain idle in our quest for maintaining and increasing our customer base byy a more efficient and most effective means. As Hellenic Bank, we strongly believe in, are investing in and working to transform our retail network offering, either through branch automation or remote work or mobile services.

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(19,5210(17 VLAD BOTIC GROUP CHIEF OPERATING OFFICER, HELLENIC BANK

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hat are Hellenic Bank’s main new tech initiatives?

Hellenic Bank is currently going through a technology transformation and a number of initiatives are being delivered, both in terms of infrastructure and improving the customer experience. The main new tech programmes involve revamping our website to act as the foundation of the digital bank and central sales platform.

This is why we are integrating the user experience of all channels on a single layer that will be driven by the omnichannel platform stack. Other initiatives focus on continual improvements to the mobile app such as push notifications, re-skinning the web banking service to meet user familiarity with social networks, a full implementation of the omnichannel platform technology stack, Data Analytics and Business Intelligence, a Credit Scoring engine for faster decision-making on Retail loans and API Banking. This is a platform containing a financial set of APIs (Application Programming Interfaces), allowing companies and developers to develop direct interfaces with the bank. The APIs’ openness and modularity allow customers to experiment, innovate and connect their systems quickly.

Openness to 3rd party solutions (e.g. FinTechs) enables platforms for partnerships and integrated value chains.

What measures has Hellenic Bank taken to protect both the institution and its clients against cybercrime?

Protecting the Bank’s customers against cybercrime is a top priority for Hellenic

Bank and a continuous and multifaceted process. The Bank invests in state-of-theart technologies to prevent such attacks and effectively manage any incidents.

This is supplemented through partnering with local and global cybersecurity leaders to ensure that vulnerabilities are discovered and remediated in a timely manner, and with the ongoing training and awareness of staff and customers alike. In addition, the Bank maintains a cyber-specific insurance contract and collaborates with forensic and security experts.

Does the current policy and regulatory framework have an impact on the decision on which technologies can be adapted by Hellenic Bank and, if so, how does this affect your overall IT strategy?

The current policy and regulatory framework does have an impact on decisions regarding which technologies can be adapted. The current framework governed by the European Central Bank and the Central Bank of Cyprus does not allow the use of Cloud computing for core banking activities.

This affects the overall IT strategy, as the limited use of Cloud means that scalability needs to be achieved using traditional methods, which have a different cost structure and a more limited ability to

innovate.

How do you decide which new technologies to invest in? Is the main criterion to satisfy customer needs or to follow global market trends?

The main driver for technology investment is satisfying our customers’ needs. We are constantly exploring new technologies that will allow the Bank to put the customer at the centre, identify the customer journey and be able to deliver tailor-made products and services based on customer needs.

Customers are in control today and they are driving the adoption of new business models. The use of technology is driving business transformation and banks need to react to this new customer-driven environment with innovation in business models, operations and IT. What is Hellenic Bank’s vision of digital transformation?

Hellenic Bank’s vision of digital transformation is one of simplified banking.

Through the digital transformation, we want to put the customer at the centre with a view to providing a simplified but superior customer experience, providing customers with the tools that will give them control over their finances while, at the same time, providing privacy and security. In order for our digital transformation to be considered a success, we want to ensure that we provide a secure and convenient environment where our customers can bank with Hellenic Bank, giving them a choice and allowing them to interact with the Bank in the most efficient and effective way, either through the digital channels or through the traditional channels such as a branch if that is their preference. www.goldnews.com.cy | GOLD | 47

| COVER STORY |

7+( 5,6( 2) ,16857(&+ INSURANCE

ARTEMIS PANTELIDOU GENERAL MANAGER, EUROLIFE

,

n your opinion, how is FinTech/ InsurTech transforming insurance in Cyprus and abroad?

Market surveys worldwide show that, although today’s life insurance customers start their insurance shopping online, they still value face-to-face advice when buying – only 16% say they would prefer to buy insurance completely online. What has changed today is that the customers want a more individually tailored value proposition and they want it now! They want an experience that is personalized, delights them, enables them and shows that they are valued. Innovations in insurance over the next three years will not be in the technology tools themselves but in how we design them with customers, agents, employees and other human partners in mind.

How have consumers in Cyprus responded to new technologies introduced by EuroLife?

The Cypriot consumer is comfortable with the new technologies introduced in the insurance world as they are already very mobile in their personal lives. We have delighted our customers with the launch of our Myeurolife portal, which gives them access to their insurance policies at any time and wherever they are. In addition, we are the first and only company in Cyprus to have an electronic underwriting system that, since 2011, has being enabling customers to obtain insurance cover on the spot. We enable our advisors to give

48 | GOLD | The Business Magazine of Cyprus

customers superior advice, with a number of professional automated tools such as Financial Planning tools for tax planning, retirement planning and life covers, and Robo-investment advice: we have automated the asset allocation of investments via a computer algorithm that matches each individual’s risk and return profile. We call it the “hands off approach”. Alternatively, customers who prefer more involvement can select the “hands on approach” whereby they use a tool to identify the fund that corresponds to their own risk and return profile.

What is EuroLife’s vision of digital transformation?

EuroLife takes a business-first, humancentric approach to digital transformation.

Leveraging innovation, industry acumen and agility, we have a vision of our transformation into an organisation that can rapidly adjust to disruptive forces and evolving expectations. At the heart of this strategy is the successful launch in 2017 of our new core life system. It is a comprehensive, end-to-end, policy administration solution for life, pensions, annuities and investment and manages the entire life cycle of insurance and investment products, from initial customer enquiry to final product maturity. It is built using the latest in technological advances and industryy standards and allows online real-time processing.

Next, we will launch new portals for our customers and advisors with an

improved user interface. Data Analytics and the implementation of a CRM platform are also part of our digital agenda as they will enable us to better know our customer and to have an integrated customer view, channels and products and to offer further personalization.

How do you envisage InsurTech developing by the end of this decade?

In the near future, through the power of artificial intelligence, the use of the Internet of Things and Data Analytics, we will deliver hyper-personalization and better outcomes to our customers, creating new products and services that not only compensate them for loss but also help reduce the chance of incurring a loss in the first place.

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| COVER STORY |

INSURANCE

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%86,1(66(6 $1' &21680(56 ARISTOS STYLIANOU EXECUTIVE CHAIRMAN, GENERAL INSURANCE OF CYPRUS

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n your opinion, how is FinTech transforming finance in Cyprus and abroad?

Financial Technology is a basic pillar of the operations of the financial industry globally. In Cyprus, in particular, it is being adopted at an accelerated pace and has become a strategic imperative in the banking, insurance, investment and other industries. Its benefits are manyfold and, whilst investment in Financial Technology is a necessity, the way in which talent will be deployed to take advantage of its potential and possibilities is a key aspect of how the industry will be transformed. This trans-

50 | GOLD | The Business Magazine of Cyprus

formation, happening now at a fast pace, will provide multiple benefits for both businesses and consumers including: x the facilitation of the exchange of financial products, x the timely dissemination of information x the provision of prompt up-to-speed interactive communication etc.

Do you believe the current policy and regulatory framework for a technology-driven financial marketplace is the right one in Cyprus? What else could be done?

Policymakers and regulatory authorities are certainly turning their attention towards regulating for an automated, technology-driven landscape. They recognize the need and the importance of keeping up with the changing environment. It must be borne in mind, however, that regulation always follows the industry in the sense that it is the industry that identifies the needs of its consumer base and takes the initiative to design and imple-

ment new technology, set the parameters and test its effectiveness.

Trust and confidence are the bedrocks of finance. How is the Cypriot financial sector performing as regards cybersecurity in comparison to the rest of the world?

Consumer trust and security are of paramount importance to General Insurance of Cyprus. Over the years, we have been distinguished as, perhaps, the most reliable and trustworthy insurer in Cyprus.

We consider this distinction a vital strand of our image and way of doing business.

Consumer trust and confidentiality are elements we will defend at any cost. Today, especially, with the many risks presented by the great, new technologies, we are aware of the dangers involved and are taking every available measure to ensure that our performance is on a par with the latest technologies available, globally. We partner with the local offices of global players in the industry and we take the issue of cybersecurity very seriously.

What is more, as a leading insurer in the general sector in Cyprus, we are examining ways in which we can provide insurance against such risks and working closely with our global reinsurance partners to make sure we are at the forefront of new developments in the field.

How have consumers in Cyprus responded to new technologies introduced by General Insurance of Cyprus?

One of the most important goals of General Insurance of Cyprus is to provide products, services and a level of service that meet the modern needs and demands of our customers. For this reason, we study and assess societal and consumer trends and needs and build these changes in consumer behaviour into our planning. One such trend is the focus of todayâ&#x20AC;&#x2122;s consumer on seeking additional value on every purchase. Moreover, it has become clear that the consumer is no longer focused on specific service providers but is, instead, placing emphasis on maximising the value of the transaction/agreement. One important current trend enabling consumers and broadening their options is the use of the Internet, which, in addition to its function as an information medium and a means of purchasing goods and services, is also a primary source of communication, interaction and social activity.

Any organisation that wishes to progress and evolve must concern itself with these changes and General Insurance of Cyprus wants to be at the forefront of developments. This is why we have recently launched a website for the sale of vehicle, home and travel insurance. Through www.gic.com.cy customers are able to complete a proposal, find out the cost of the insurance and complete the purchase of the policy with a charge to a bank card via JCC. The insurance plans available through www.gic.com.cy are aimed at customers who are accustomed to Internet

shopping, and who are looking for basic, simple products at a lower cost.

It follows that online products are not recommended for those customers who need a personal service and personal contact and who would prefer to be served at a branch.

With this move, General Insurance of Cyprus has turned a new page in insurance. The innovative online plat-

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digital journey but also on creating the digital landscape for the insurance industry as a whole, as we project that this is the way forward for the next five to ten years. Our digital transformation is business-centred, spearheaded by business needs and requirements in line with consumer demand and preferences and is accelerated by the possibilities offered by financial technologies.

Among the many opportunities we are engaged in, we envision: x A paper-light operation, reducing bureaucracy and minimising procedures. x Providing instant connectivity across our various sources of business, delivering a uniform service experience and achieving on-the-spot sales. x Creating fast-lane, hassle-free customer service and experience, irrespective of the transaction channel (e.g. website, e-mail, phone, branch).

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form at www.gic.com.cy ensures the continuous development of General Insurance of Cyprus operations and the modernisation of its customer service.

This new route to selecting and buying insurance products heralds a new era since www.gic.com.cy will be constantly enriched with new insurance plans.

Consumer interest and response to our new website has exceeded our expectations, which is another element that encourages us to continue to innovate and place the consumer at the centre of gravity of our operation.

What is your companyâ&#x20AC;&#x2122;s vision of digital transformation and how do you envisage FinTech developing by the end of this decade?

General Insurance of Cyprus not only places great emphasis on its own

www.goldnews.com.cy www.go www gold ldn news.co ews om.c m.cyy | GOL GOLD OLD D | 5511

| COVER STORY |

INSURANCE

),17(&+ ,6 /($',1* 7+( :$< DEMETRIS SPARSIS HEAD OF INSURANCE DIVISION, HELLENIC GROUP

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n your opinion, how is FinTech transforming finance in Cyprus and abroad?

The evolution of FinTech is affecting all aspects of life directly and indirectly as consumers are increasingly gaining information and buying products and services by using all available vehicles of delivery. In the financial world â&#x20AC;&#x201C; and specifically in the Insurance industry â&#x20AC;&#x201C; we are increasingly facing challenging demands to offer products and services via digital channels of distribution such as mobile and on-

52 | GOLD | The Business Magazine of Cyprus

line. Cyprus is closely catching up with what is on offer throughout the world and FinTech is leading the way. FinTech companies have won over many investors and consumers with innovative product and service offerings that are often less costly, more convenient or less complex than many traditional bank and insurance offerings. However, as they grow in popularity, FinTech firms face more and more scrutiny from federal and state regulators.

Do you believe the current policy and regulatory framework for a technology-driven financial marketplace is the right one in Cyprus? What else could be done?

The Cypriot regulatory framework is as

strong as, if not more strict and detailed than, other European jurisdictions.

Compared to many of its European counterparts, Cyprus is still in its infancy in terms of its start-up ecosystem. The country has made innovation a top priority in its strategy to develop a digital economy and is determined to make all the right connections to achieve its goal.

Cyprus was recently included on a list of eight emerging global technology hubs

by Transfer Wire and no wonder, with its rapidly growing economy and efforts to improve its telecoms landscape. An excellent infrastructure has already been established on the island, as well as a state-of-the-art satellite and submarine cable infrastructure, connecting the island with its neighbours and the rest

of the world. Until recently, FinTech was only about the banking sector and insurance was left aside. But recently Insurtech has arrived and convenience can revolutionize the Insurance Sector.

Trust and confidence are the bedrocks of finance. How is the Cypriot financial sector performing as regards cybersecurity in comparison to the rest of the world?

Trust and confidence are indeed the bedrocks of finance and insurance.

New technologies are arising, leading to the emergence of FinTech. To name just the most powerful ones: The Internet of Things (IoT), Advanced Analytics and Artificial Intelligence, Telematics and GPS, Smart Contracts and Blockchain, and Drone and Smart Industries. The Cypriot financial sector is beginning to understand the importance of Cybersecurity and through Pancyprian Insurance we are in a position to offer specific products to secure the integrity and safe storage of data.

How have consumers in Cyprus responded to new technologies introduced by Pancyprian Insurance and Hellenic Alico Life?

Both Pancyprian Insurance and Hellenic Alico Life, which deal with the general insurance aspect and life insurance aspect respectively, are in the process of re-evaluating their products offering and deciding our next steps in the new digitalized world of Insurance. Consumers in Cyprus, as in the rest of the world, especially the younger generations are picking up with technology and are willing to test and buy products through alternative channels of distribution. We are still at the beginning of this new era of FinTech and InsurTech but be sure that the new products that are already available in the market are only the tip of the iceberg. We are evaluating our options and those that do not respond and evolve will be faced with huge prob-

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How do you envisage FinTech developing by the end of this decade?

I envisage that by the end of the decade FinTech and InsurTech will need to answer questions on the new regulatory and policy framework â&#x20AC;&#x201C; questions on the impact of Big Data, the ethics of algorithm, the impact of robotisation and of using personal health data.

Moreover, Cyber Insurance will need to address issues such as how damage can be verified and its financial impact be accurately assessed, what should be covered and not, and what the ecosystem of cyber resilience means for EU citizens.

lems, even problems affecting their very existence in the market.

What is your companyâ&#x20AC;&#x2122;s vision of digital transformation?

Our vision of the world of Digital transformation encompasses both Pancyprian Insurance and Hellenic Alico Life and we foresee a future where simple and easy-to-acquire products will be available at a touch of a button.

Technological innovation will impact how Insurance Companies measure risks, price risks, engage with consumers, reduce costs and improve efficiency Therefore, we will become digital proof and the distribution of insurance products via mobile and pure digital channels is and will be a strategic positioning of our Insurance Sector.

www.goldnews.com.cy www.go www .goldn news ws.co .com.cy | GOL GOLD | 53

| COVER STORY |

NON-BANKING

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75$',1* CHARIS MOUNTIS GLOBAL HEAD OF DEALING, FOREXTIME LTD

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n your opinion, how is FinTech transforming finance in Cyprus and abroad?

FinTech has fostered a new era of currency trading.

The main goal of financial technology innovation has been to connect clients to a product more efficiently and cheaply. It has revolutionised the financial landscape.

Transaction speeds have changed from

54 | GOLD | The Business Magazine of Cyprus

days to seconds and the monitoring and recording of transactions are transparent and accessible with just a few strokes on a keyboard. FinTech improves everything from pricing accuracy to delivery, especially in the Forex space.

It has improved trading conditions in Cyprus and the entire European Union.

It has been especially useful in terms of processing and analysing of vast amounts of data, a key focus point in currency trading. Pricing latency has also significantly improved, along with quality and speed of execution of the trades.

Do you believe the current policy and regulatory framework for a technology-driven financial marketplace is the right one in Cyprus? What else could be done?

The regulatory environment worldwide has been positively impacted by FinTech because it facilitates a high degree of transparency. These improvements in transparency have been passed down to clients and have resulted in better service frameworks. The advances also mean that it is much easier to detect illegal practices, making the entire Forex industry a much safer environment for traders.

Everything from on-boarding to appropriateness testing is recorded, audited and scrutinised, so clients have a high degree of protection. They have peace of mind, knowing that regulators are equipped to enforce high standards of compliance. Trust and confidence are the bedrocks of finance. FinTech in the Forex space is continually evolving and many start-ups are focusing their efforts

on Artificial Intelligence and “robots” to provide traders with tools to help them navigate the markets. Innovation is progressing at a blistering pace but it often changes focus as innovators try to peg where the most critical pain points are. Currently, the main challenges lie in Big Data analysis and speed, and FXTM agrees that this is where the big spending should be because these areas are core to the Forex industry.

How is the Cypriot financial sector performing cybersecurity, in comparison to the rest of the world?

Security is a key business imperative for FXTM. We employ state-ofthe-art encryption methodologies to ensure the integrity of our company data and that of our clients. Regulation requires all brokers to take security seriously. Cyprus follows the EU in terms of implementing safeguards against cyber attacks. Officials are now compiling a regional database to record all digital attacks to help get a handle on where and how attacks occur.

The switch to mobile technology for financial transactions has spawned another headache for the cyber police.

We do, however, have full confidence that our team at FXTM, will keep our clients protected from such attacks.

How have consumers in Cyprus responded to new technologies introduced by ForexTime?

There is often resistance to new technology – humans are creatures of habit and react badly when a system they have been using for years has changed. When Internet banking was first introduced, there were plenty of naysayers claiming that they would never entrust financial transactions to an online platform. Fast forward 20 years and most people can’t imagine their lives without online banking.

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How do you envisage FinTech developing by the end of this decade?

Financial institutions will have to up the stakes. They cannot be passive about innovation and hope to ride on the coattails of other innovators.

Innovation in businesses will have to be a collaborative effort between the industry and the tech pundits. Many companies are already partnering with tech firms to enhance innovation. A good tech and innovation department will no longer be “nice to have” in a business. It will be the key to their growth.

However, the resistance to new technology does not seem to faze Forex traders; in fact, they embrace it. A trader by his or her nature is tech-savvy and, to them, new technology and innovation means more efficiency, security and control.

What is ForexTime’s vision of digital transformation?

We have an acute awareness of how technology is going to keep us at the forefront of our industry. Our teams are constantly researching trends and refining our systems in order to quickly adopt any new technology. We are also positioning ourselves as trend setters by being early adopters of new technology and, in some cases, developing it. We are already using the precursers of Artificial Intelligence in the form of our Expert Trader offering, which, in essence, is a smart algorithm that can process massive amounts of data to assist trading decisions. The age of Artificial intelligence is dawning and we have to be ready for that. www.goldnews.com.cy www ww w..g .go g go gold old ldn dn news e s.co .co ..c co om. m.ccy | GOL GOLD LD | 55 55

| COVER STORY |

NON-BANKING

67$<,1* $+($'

2) 7+( &859( CHARALAMBOS PSIMOLOPHITIS CEO, FXPRO

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n your opinion, how is FinTech transforming finance in Cyprus and abroad?

I think it is not an overstatement to say that financial technology has radically transformed the finance sector in both Cyprus and abroad, and is continuously expanding the horizons of the financial services industry.

This is a global sector, an ever-changing sector where each millisecond matters, and the extent and quality of our operational capabilities depends almost exclusively on the rate of technological progress. FinTech is changing the scenery now faster and more pervasively than ever before, constantly replacing our standard processes and procedures with better, more efficient and more effective ones.

Do you believe the current policy and regulatory framework for a technology-driven financial marketplace is the right one in Cyprus? What else could be done?

From the rapid growth of the financial services industry in Cyprus, one can tell that the current policy and regulatory framework does manage to set some effective foundations for the successful development of the sector. That said, it should be kept in mind that the downside of what is fundamentally a technology-driven sector is that together with the growing benefits of FinTech there emerges an added level of risk that demands to be effectively and timely managed. There is definitely more that can and should be

56 | GOLD | The Business Magazine of Cyprus

done in terms of supervision as well as in terms of adapting pre-existing guidelines and setting new ones that take into account every possibility that opens up with every new technological advancement. In other words, it is necessary for local regulation to stay up to date with technological developments that affect the industry if it is to meet the demands of the financial marketplace and ensure its longevity.

operational model and capabilities. Over the last few years we have invested massively in these areas since, given the rate by which new technological advancements occur, staying ahead of the curve is an ongoing, never-ending process. As a global company, we seek to fully leverage the opportunities presented to us by developments in financial technology to expand and enhance further the services we offer to our clients.

Trust and confidence are the bedrocks of finance. How is the Cypriot financial sector performing as regards cybersecurity in comparison to the rest of the world?

Cybersecurity is a global issue, with cyber attacks and digital crimes among the top threats facing organisations today. The growing threat of cyber attacks does not leave the financial sector in Cyprus unaffected. Given the extent to which they rely on technology, I believe that financial services firms based in Cyprus have long realised the necessity for a cybersecurity strategy and actively enhance their IT infrastructure, taking the necessary steps to shield themselves from the detrimental consequences of falling victim to hackers.

As is the case with the rest of the world, I think the Cypriot financial sector is investing in maximising its cybersecurity capabilities and in maintaining its reputation and credibility as a prominent financial marketplace.

How do you envisage FinTech developing by the end of this decade?

Given the ever-accelerating rate by which technology is affecting and, indeed, defining our business and operational models, I am certain that, by the end of this decade, we shall witness many significant changes.

Financial technology can surely be expected to open up new possibilities in the finance sector, to streamline our existing procedures and present us with new opportunities. With regard to the financial services industry in particular, I expect that we will see further improvements in most, if not all, aspects of online trading, including the handling and execution of trades, the process of payments, and especially the ease with which investors are able to access the financial markets.

What is FxProâ&#x20AC;&#x2122;s vision of digital transformation?

As an online broker, FxPro is largely dependent on digital technologies and we are continuously refining our infrastructure,

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| COVER STORY |

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n your opinion, how is FinTech transforming finance in Cyprus and abroad?

FinTech is not something new. It has actually been instrumental in transforming the financial industry for the last decades. What we are experiencing now is the much faster pace at which this transformation occurs as it becomes more evident and disruptive in the financial sector as a whole. FinTech has already changed the way the average consumer in Cyprus manages his financial affairs. Some examples include the way in which we interact with banks through online and mobile banking applications, electronic trading in financial instruments and wearable technologies

58 | GOLD | The Business Magazine of Cyprus

LOUCAS MARANGOS CEO, TFI MARKETS

that allow the contactless purchase of goods. In larger and, arguably, more innovative economies we are witnessing significantly more disruption to the financial sector as branchless banks become more common, smaller startups offering efficient payment solutions compete for market share, crowdfunding and automated peer-to-peer lending provide novel ways in which entrepreneurs can raise capital and NFC-enabled smart devices are used to effect contactless payments.

Do you believe the current policy and regulatory framework for a technology-driven financial marketplace is the right one in Cyprus? What else could be done?

I feel that it is important that on a national level we appreciate that FinTech represents an opportunity which, if missed, can quickly turn into a threat for the business models of incumbents

against the backdrop of todayâ&#x20AC;&#x2122;s globalized financial environment. There are a number of components that must be put into place to implement a successful national strategy. These range from legislative measures that look specifically into making use of emerging technologies to change the way we do business, e.g. electronic signatures, public-private sector initiatives that look to increase awareness and use of new technologies, incentives to attract foreign participants and knowhow and, looking more long-term, an educational framework that puts emphasis on technology. The current regulatory framework poses challenges to financial innovation. Perhaps understandably, the focus of the regulators is still on addressing the issues of the banking sector and the negative publicity that put Cyprus in the spotlight in 2013. Other regulators, such as the FCA, operate â&#x20AC;&#x153;Regulatory Sandboxesâ&#x20AC;? where firms can quickly test new technol-

ogies providing a first mover advantage to firms under their supervision.

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Trust and confidence are the bedrocks of finance. How is the Cypriot financial sector performing as regards cybersecurity in comparison to the rest of the world?

Cybersecurity is a key theme of todayâ&#x20AC;&#x2122;s financial sector as the proliferation of online technologies has given rise to cybercrime and successful high-profile attacks on international companies prove that no one can be 100% secure.

The financial sector is probably the most prepared sector in Cyprus. This is a result both of arrangements in the regulatory frame work that requires financial firms to specifically audit their IT infrastructures for weaknesses as well as financial firms having a better defined and better funded IT function.

It is extremely difficult to reach an objective measure of Cyprus vs the rest of the world. There are a number of studies which differ in their methodologies, making comparisons difficult, but they suggest that Cyprus as a whole ranks somewhere in the middle.

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How have consumers in Cyprus responded to new technologies introduced by TFI Markets?

The large majority of our customers are keen to embrace new technologies and, as a company, we always provide incentives and training to support both during launch but also during the lifecycle of services. It is also worth mentioning that we see a strong correlation between the industries in which our clients are active and their uptake of new technologies.

The more technologically advanced clients also have an appetite to test new solutions and we work closely with them during development and testing. A small number of clients prefer doing business in the traditional pen and paper way. Either they are accustomed to doing business in a set way or, on some occasions, they do not trust technology. We do maintain less technologically savvy solutions for these clients but we are actively trying to convince them to migrate to more efficient and automated solutions.

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What is TFI Marketsâ&#x20AC;&#x2122; vision of digital transformation?

As a principle, we always remain flexible and take a view on how technology, in conjunction with other drivers for change, shapes the financial environment in which we operate. Technology is an opportunity that impacts both internal as well as external users. The automation of internal processes speeds up transaction processing time, reduces the likelihood of errors and lowers costs. Keeping abreast of new technologies has become part of our culture as we view our processes as fluid and are always looking into ways of improving them. In todayâ&#x20AC;&#x2122;s environment, clients have choices and we are proactive in continuously looking for ways to improve customer service. In this respect, technology is instrumental as a means to improve the customer experience, automating customer interaction, shortening processing times, minimizing errors and providing information in real-time.

continue to change the way that businesses and individuals conduct their financial affairs but will also have a profound effect on the structure of the financial markets and characteristics of market participants. Consumers will be able to shop around well beyond national boundaries for financial services and they will be engaging a larger number of smaller specialized financial service providers. Transactional costs will come down as new market entrants target areas where incumbent financial service providers enjoy higher profit margins.

To a large extent, the use of the personal approach as a means of customer interaction will be less frequent as interactions will be automated and not faceto-face. The structure of the financial industry will change as smaller IT-savvy industry participants compete for market share with the incumbents. FinTech will continue to bring innovative solutions to the market. Not all of them will work but those that do work will change the way that we pay, transact, invest, borrow or get insured.

How do you envisage FinTech developing by the end of this decade?

FinTech will undoubtedly

www.goldnews.com.cy www w.go .g gold go dnew ews ews.co ews ws.co .co com.c om m.cy | GOLD m.c GO | 599

| COVER STORY |

$ 21&( ,1 $ OPINION

*(1(5$7,21 23325781,7< FINTECH AND ITS IMPLICATION FOR FINANCIAL SERVICES AND INVESTMENT FUNDS

BY DR. ANTONIS HOURY

7

he digital revolution is transforming the way customers access financial products and services, with technology-driven applications penetrating every segment of the financial industry. FinTech is an umbrella term used for the emergence of Financial Technology and covers every type of technological innovation, including financial literacy and education, banking, investment and cryptocurrencies. FinTech is a dynamic segment that has been growing at an exponential rate, reshaping the financial industry and causing a digital disruption to the financial services landscape. While the impact of this disruption cannot yet be quantified, the ability to create better, faster and cheaper services that will become an essential part of everyday life for institutions and individuals is already clearly visible.

As people become more and more accustomed to the digital experience offered by companies such as Google, Apple, Facebook and Amazon, they expect the same level of customer experience from their financial services providers. A state-of-the-art customer experience, speed and convenience will further accelerate the adoption of FinTech, offering solutions that can better address customer needs by offering enhanced accessibility, convenience and tailored products.

Over the next decade, the average financial services client profile will change dramati-

60 | GOLD | The Business Magazine of Cyprus

cally as the leadership of the global economy moves from the older generation (â&#x20AC;&#x2DC;baby boomersâ&#x20AC;&#x2122;) to newer and more technologically adept ones (Gen X and Millennials).

The investment industry is another area with the potential to be affected dramatically by major technological developments. The emergence of data analytics in the investment sector has enabled firms to focus on investors and design and deliver tailored products and solutions. Investors of the new generation will most likely prefer to conduct personal research and thus retain more control over financial decisions. This trend will result in asset management firms moving towards more holistic, goal-based advice.

This could, in turn, enable the emergence of robo-advisors that will accommodate these needs and assist firms in attracting and serving clients more efficiently and at a lower cost. Robo-advisors can provide automated, algorithm-based portfolio management advice to clients and recent developments also enable them to offer tools and methodologies that generate real-time trade and investment recommendations, tailored to each individual investorâ&#x20AC;&#x2122;s history and preferences.

Blockchain technology, underpinning cryptocurrencies like Bitcoin, is also attracting a lot of interest within the financial industry, given its potential to create a secure, pseudo-anonymous, traceable and decentralised transaction system using a distributed ledger network to allow for peer-to-peer

(P2P) transactions without the need for any third party. These idiosyncrasies offer novel approaches to data management and sharing, providing the opportunity to improve efficiency in a number of applications, such as faster interbank clearing and settlement, lower transaction costs, reduced counterparty risk and increased transparency. The fund industry can greatly benefit from the adoption of this technology by facilitating disintermediation through greater transparency and tracking of transactions and assets records, which will certainly be a basis for further innovation and transformation.

In the coming years, the impact of FinTech will become more noticeable as new technological solutions start to flourish. The emergence of FinTech should be viewed as a once-in-a-generation opportunity to reimagine and modernise the funds industry.

Info: Dr. Antonis Houry is the Strategy and Business Development Manager at Eurobank Cyprus Wealth Management

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A. TH. LOIZOU & SON LTD Th. Loizou & Son Ltd has partnerships with leading Solution Providers and System Integrators in order to provide customers with core business software applications and IT solutions guaranteeing quality, support and real customer value.

COMPANY TIMELINE • 1947 – Established by Andreas Th. Loizou, initially representing British, German and Czech suppliers for office equipment.

• 1986 – As the Cypriot market evolved, our company began to specialize in the area of Information Technology. The business direction has progressed from the supply of hardware to the provision of complex turnkey IT solutions that include both package software and bespoke application development.

• 2015 – We acquired the Share Capital of Bull Cyprus Ltd from ATOS. This acquisition and our partnership with Atos & Bull has enriched our solutions portfolio. The company has been renamed to ATHLOS System Integrators Ltd. • We have 30 highly qualified and skilled personnel PARTNERS INCLUDE: Dell EMC, Sopra-Steria, Atos Technologies, NEC, CISCO, Microsoft, Open Text, Panda Security, Abbyy, Novastor, Commvault, VMware, ca technologies, Sophos, Barracuda MAIN MARKET SECTORS WE SERVE: The Cyprus Government, Banking Sector, Insurance Sector, Hotel Industry, Retail Sector, Automotive Sector, Energy & Utilities.

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SERVICES Managed Services: Remote & Onsite support based on defined SLA improving operations and cutting expenses.

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62 | GOLD | The Business Magazine of Cyprus

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64 | GOLD | The Business Magazine of Cyprus

AMDOCS CORPORATE FACTS x Amdocs was founded in 1982 x We are listed on the NASDAQ Global Select Market under the symbol DOX and the company went public in June 1998. x Our revenue was $3.7 billion in fiscal year 2016. x Amdocs’ client base includes over 350 customers in more than 85 countries. x We have support and development centers

located worldwide – including Brazil, Canada, Cyprus, India, Ireland, Israel, Mexico, the Philippines, the United Kingdom and the USA. x Our Cyprus Development Centre (DVCC) was established in Limassol in 1997, allowing us to celebrate 20 years on the island this year. x We have a global workforce of more than 25,000 professionals. Over 400 of them are located in Cyprus – and we’re growing!

"At amdocs the opportunities are plenty - the choice is yours"

CONTACT INFORMATION:

Address: The Maritime Center, 141 Omonia Avenue, P.O. Box 50483, 3045 Limassol, Cyprus Tel: (+357) 25886000 Career Site: O[[W! QVIZ HTKVJZ JVT

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FINTECH AND TECHNOLOGICAL INNOVATION

BANK OF CYPRUS Let's co create the future

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All around the world, technology is now being used in novel ways by new players in the field of finance to cause disruption and rethinking of traditional banking and financial transaction models. Bank of Cyprus recognises the disruptive innovation happening in the financial marketplace and aims to position itself in a way which can benefit its end customer. We wish to migrate our customers to a future where a wealth of digital services would cater for all their banking needs. To do so, we recognise that we must provide innovative services the quality and usefulness of which would be unquestionable. As we look at the latest developments all around us, we openly acknowledge that the next wave of innovation will not only come from within our organization, but from FinTech companies all around us who specialize in unbundling the financial value chain and offering best of breed solutions, tailored to specific use cases.

Ultimately, we wish to re-position ourselves from being a traditional service provider, to being at the heart of the customer relationship in a secure and holistic digital environment. We see a future where we will provide a financial app store showcasing a range of financial solutions, from a range of different providers, all within our own enhanced user experience. We want to offer freedom and choice.

To achieve this, we recognise we must open up and be willing to collaborate with FinTech incumbents so as to bring to market the speed of innovation required by todays tech-savvy customer. As a result, we are now looking towards working with innovators themselves to bring new services to the market.

CO CREATING THE FUTURE As a starting point, we break down traditional communication and collaboration styles and look to engage the local community in an open

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dialogue aimed at plotting a course towards a digital future. We are looking towards mobilizing, engaging and actively collaborating with the local development/entrepreneurial community in Cyprus, thus offering the opportunity to put prospective ideas into practice, and in the process, influence the future strategic direction of the Bank. As part of this effort, we wish to bring together the local entrepreneurial and start-up ecosystem around the field of Fintech and in turn help create, fuel and boost development of a ‘Cypriot FinTech Cluster’.

OUR STARTING POINT: A FINTECH HACKATHON! On the 9th, 10th and 11th of June 2017, we will organise a 3-day hackathon style of event with the aim of encouraging and promoting open innovation in financial services. This is the first FinTech hackathon to be conducted in Cyprus.

We wish to bring together potential interested parties and start-ups, over the course of a weekend, to work in teams to develop new innovative solutions in FinTech, up to the minimum viable

product stage (MVP) with the potential of further developing them into fully functional applications. Through this process participating teams and start-ups could potentially evolve into future viable business models.

A panel of judging experts will select the ‘winning’ teams. Winners will receive a number of monetary prizes sponsored by the Bank, as well as free tools and access to various other services by our sponsors e.g. Microsoft Azure and IBM BlueMix subscriptions, etc. In addition, they will be given the opportunity to be inducted in the IDEA Programme (http://ideacy.net). We passionately wish to reward curiosity and ingenuity, inspire you, as well as motivate you to dive further and continue exploring the field of fintech!

WHO SHOULD PARTICIPATE? We are issuing an open call for participation to developers, analysts, designers, marketing and communication professionals, business/tech consultants, members of the financial sector, as well as any participant with a keen interest in the field of FinTech.

Participants may apply as already formed teams or individuals. In case of individual participation, you will be placed in a team of other participants of complementary skillsets such as to maximize chances of being able to come up a minimum viable product offering. Participation is FREE! Entry spots will be satisfied on a first come first served basis.

Participants are invited to bring along plenty of enthusiasm, energy and curiosity, their laptop, and we will handle the rest!

WHAT WE BRING… We promise to make it a memorable weekend by bringing together under the same roof some of the biggest international names in the field of FinTech for you to get to know and connect with. We want them to inform you about international trends in FinTech, share their knowledge, mentor you and inspire you to dive further into this exciting field.

We are also bringing on board some of the biggest technology players in the international market such as IBM and Microsoft along with various other local technology service providers.

IBM and Microsoft will offer their tools for experimentation and development, as well as make available their subject matter experts for mentorship and advice.

Furthermore, we plan to move forward towards making available Open APIs which give the ability to third party service providers, as well as the Bank itself, to tap into and benefit from the innovation happening in the marketplace. To be thought of as ‘financial lego’ these APIs will allow BOC and third parties to talk to, combine, and create best of breed custom tailored financial solutions which would offer superior customer service and decrease time to market.

By having everything under one roof, along with giving access to plenty of exciting technology tools and platforms, we would like to encourage exploration and fleshing out ideas. In addition, a large number of experienced mentors and technology specialists from Cyprus and abroad will be present for the whole duration of the Event in order to inspire and advise you.

Join us! After all, who knows maybe we can help you discover the next big thing! The sky’s the limit...

CONTACT INFORMATION: Website: ^^^ IVJOHJRH[OVU JVT E-mail: OHJRH[OVU' IHURVMJ`WY\Z JVT

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68 | GOLD | The Business Magazine of Cyprus

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FINTECH AND TECHNOLOGICAL INNOVATION

CloudLayer 8 he disruption brought by cloud computing to otherwise traditional IT began about 10 years ago and, ever since, we have observed cloud adoption rates increasing continuously. According to a recent study by RightScale, 95% of companies utilize Cloud services today and, in many cases, without even noticing it.

Mate Ivanszky, Advisor to the board of CL8.com

CONTACT INFORMATION:

Address: P.O. Box 54218, 3722 Limassol, Cyprus Tel: (+357) 25022900 Fax: (+357) 25022901 e-mail: info@cl8.com Website: www.cl8.com

WHAT ARE THE TYPES OF CLOUD? Not all Cloud providers provide the same type of Cloud service and experience, as they vary in size and in their overall approach to Cloud computing. The main types of cloud are the following: Public Clouds are owned and operated by third-party service providers such as Amazon, Google and Microsoft. Customers benefit from economies of scale because infrastructure costs are spread across all users, thus allowing each individual client to operate on a low-cost, “pay-as-you-go” model. It is also important to note that all customers on public clouds share the same infrastructure pool with limited configurations, security protections and availability variances, as these factors are wholly managed and supported by the service provider.

Private Clouds are hosted by an external Cloud computing provider.

The service provider facilitates an exclusive Cloud environment with full guarantee of privacy. This format is recommended for organisations that prefer not to use a Public Cloud infrastructure due to the risks associated with the sharing of physical resources.

Hybrid Clouds combine the advantages of both the public and private Cloud models. In a Hybrid Cloud, a company can leverage third-party Cloud providers in either a full or partial manner. This increases the flexibility of computing. The Hybrid Cloud environment is also capable of providing on-demand, externally-provisioned scalability. Augmenting a traditional private cloud with the resources of a public cloud can be used to manage any unexpected surges in workload.

CL8.COM HELPS TURN CAPEX INTO OPEX Without a doubt, today’s financial instability and future uncertainty leads to budgetary cuts, so maintaining momentum and staying technologically competitive becomes a challenge. The Information Technology (IT) department needs more and more resources due to increased computational requirements, while security threats arise continuously, leaving organisations with no option but to make serious capital-intensive investments.

TURN €€€€€€ OF INVESTMENT INTO €€/MONTH EXPENSES CL8.com offers a series of services and solutions to support firms in reducing capital-intensive investments into simple operational expenses and through a variety of services offered such as: Colocation Services: Traditionally, organisations have a server room which is usually the most expensive room of the business. Climate and environmental control, generators, security, fire detection and

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suppression, UPS batteries and qualified suppliers and vendors to maintain them are just some of the concerns of maintaining a server room. Now add redundancy and Disaster Recovery into the equation and your server room’s requirements are doubled / tripled. At CL8.com, we take care of all of those matters by hosting your firm’s IT equipment with a financially backed up Services Level Agreement in our ultra-secure, Tier-3 Data Centre located in Cyprus, with 24/7/365 Support and Security, multiple Internet Providers over redundant connections and Disaster Recovery rooms.

Dedicated Servers: Do you need servers that can instantly support an unexpected demand?

Are you looking to replace your old IT equipment? CL8.com has servers available for rent for a monthly fee to support your demand for as long as you need it, so you don’t need to invest in servers that you might not need anymore.

Disaster Recovery: CL8.com offers Disaster Recovery services and rooms to support the Business Continuity Planning requirements set by your compliance department or regulator.

Security Services: CL8.com provides a variety of security services to support your defence in depth strategy. Anti-Denial of Service, email/gateway security and encryption are some of the security services CL8.com offers.

CL8.com follows all ISO 27001 Information Security Management Systems and ISO 9001 standards in order to secure the quality of services it provides. It also complies fully with PCI DSS Data Security Standards. For more information, please visit www.cl8.com

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FINTECH AND TECHNOLOGICAL INNOVATION

CRM.COM

RM.COM develops and markets on-demand (cloud) and on-premise Customer Management Software for Subscription Billing and Rewards.

Founded in 2005 and headquartered in London, with regional offices in Cyprus and a development facility in Vietnam, CRM.COM supports its software and partners across Europe, America, Asia and Africa.

CRM.COM is designed for scalability and performance. It is built on the Java Enterprise Edition platform and scales from a few thousand to millions of customers. Our web-based software can run on almost any operating system, any database and any browser. It is also inherently designed for a Service Oriented Architecture with extensive APIs to make integration to other systems easy and flexible.

REWARDS & LOYALTY The CRM.COM Rewards are used to award customers for their dedication, loyalty as well as performance, in a simple and versatile manner, allowing them to collect and spend conditional monetary awards.

CRM.COM supports several types of reward offers, enabling a rewards setup that can meet diverse business requirements.

DESIGNED FOR FINANCIAL INSTITUTIONS AND CARD ISSUERS CRM.COM provides new generation rewards and loyalty solutions designed for financial institutions and card issuers. The CRM.COM rewards model consists of the Financial Institution Product Rewards and the Merchant Driven Rewards.

The Financial Institution Product Rewards allows the institution to award its customers based on their product usage with conditional cashback straight into their wallet. The institution has the ability to award customers who have accomplished a specific financial achievement or have reached specific key business objectives as measured through their financial statement. Subsequently, the collected cashback can be spent by the on a list of participating merchants or simply on their own products such as a payment against a monthly loan instalment.

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The Merchant Driven Rewards allows the cardholders to be awarded based on their card usage at participating merchants.

The cardholders can be awarded through a variety of offer types such as sign ups, referrals, birthdays, name days, demographics, products, purchase value, purchase frequency, customer segments, personal data completion, Facebook Likes, website visits and other achievements.

Typically, merchant driven rewards are fully funded by the merchants but can optionally be co-funded by the financial institution.

The customer journey is simple, fun and intuitive. The customer joins the rewards scheme either automatically or simply downloads the CRM.COM mobile app, branded around the financial institutionâ&#x20AC;&#x2122;s brand and identity. As soon as the customer is registered, she can indicate her spending preferences, update her contact details and view all the running offers at the ease of her smartphone.

The participant then visits a merchant and pays with her card as she would normally do. She is being awarded in real time for her qualifying purchases with cashback straight into her wallet and is automatically being notified either via SMS or a mobile app notification. Sub-

sequently, depending on her spending preferences, money is being credited back into her card. Again, within seconds the participant is automatically being notified about her spend.

CRM.COM is multi-channel, meaning that participants who choose not to use the mobile app will be able to manage their rewards via the web portal or be notified via SMS for their awards, spends or other notifications.

CRM.COM INNOVATION In CRM.COM we like to keep things simple, yet powerful, following all the newest trends in the industry. The CRM. COM Rewards do not require any spending indications at the transaction point nor do they require any interference of the cashier with the award or spend process. No delay or complexity is being added at the transaction point as everything is being processed at the back end automatically.

Conditional cashback rewards allow for much bigger awards, rather than flat discounts that apply to all. This allows for the offers to be targeted to specific customer segments and be personalised.

Additionally, the cashback can optionally be specific, i.e., for specific merchants, on specific days, at specific times and for specific products as per each merchantâ&#x20AC;&#x2122;s needs. This allows the merchants to create offers with real value to them and their customers.

Finally, the CRM.COM Rewards make a better utilisation of non-spent awards. Awarded cashback that has not been spent by the participants and has expired can be used to fund financial institution product rewards or be used towards the merchant contribution.

A MODERN, EASY AND POWERFUL APPROACH CRM.COM provides rewards solutions for financial institutions and card issuers with powerful segmentation and product-based rules and is designed for a â&#x20AC;&#x153;lights out operationâ&#x20AC;? where processes run in full auto pilot.

The software is user friendly, does not require any technical skills to be set up, is pre-integrated with leading POS, card terminals, e-commerce platforms as well as payment and SMS gateways. In addition, it requires a low investment in 3rd party system software, all resulting in a faster ROI. A complete software and Web API documentation allows our customers to easily configure, modify and extend the CRM.COM software.

Furthermore, the software can be deployed either as an on premise or on demand (cloud) model depending on the customerâ&#x20AC;&#x2122;s needs and budget.

CUSTOMER SATISFACTION The CRM.COM solutions are tried and tested in customers all over the world but also here in Cyprus. In CRM.COM we are proud of the fact that we leverage our high-quality software to deliver solutions to companies of any size and transaction volume providing truly innovative and useful solutions with a fast ROI. Setting the standards high has always been the culture for CRM.COM and our goal is to provide rewards innovation for today and the future.

¸5L^ NLULYH[PVU YL^HYKZ HUK SV`HS[` ZVS\[PVUZ MVY Ă&#x201E;UHUJPHS institutions and card issuersâ&#x20AC;?

CONTACT INFORMATION:

Headquarters address: Enstar House 163-173 Praed Street, 2nd Floor, London W2 1RH, UK Postal address: 21 Elia Papakyriakou Street, YK Ă&#x2026;VVY ,NRVTP Nicosia, Cyprus Tel.: +44 207 402 2265, +357 22 265566 Email address: info@crm.com Website: www.crm.com

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FINTECH AND TECHNOLOGICAL INNOVATION

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FILEMINDERS Gain control over your business information

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Financial institutions need to secure high-risk business information while dealing with the big challenge of information silos and accessibility. At the same time, the hot upcoming EU General Data Protection Regulation (GDPR) is going to make things even harder. The GDPR can be considered as the most important change to European data privacy regulations in 20 years. Even though it is an EU regulation, GDPR affects any organisation worldwide that handles the personal data of an EU-based individual.

.+79 JVTLZ PU[V MVYJL VU 4H` [O I\[ MVY VYNHUPZH[PVUZ [OH[ KV UV[ [HRL H WYVHJ[P]L HWWYVHJO [V IL WYLWHYLK P[ ^PSS JH\ZL H ZPNUPÄJHU[ OLHKHJOL EVENTUALLY EVERYTHING CONNECTS The desired result is to gain complete control over information, reduce paper-handling inefficiencies and utilize valuable business data to improve decision-making and meet deadlines. This is how the quality of service is improved and companies become more competitive.

The solution consists of managing the physical and digital documentation. This includes secure storage of the physical documents and digitization of important document categories such as permanent files including current and ongoing documents, based on each firm needs.

Then the solution is completed with the implementation of a Docu-

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ment Management System, as a centralized repository. Once a document is created, it is stored centrally for easy access to the record and its supporting documents, with a click of a button. While maintaining a single storage location we can also control data visibility and protect sensitive documents. On the other hand, with the design of automated workflows we can improve business process efficiencies and assures employees do not accidently skip a step in important procedure ALEXIS EVANGELOU HEAD OF DIGITAL SOLUTIONS

‘Everything becomes simWSPÄLK HUK H SV^LY LMMVY[ environment is JYLH[LK ^OLYL less resources HUK [PTL HYL ZWLU[ VU THUHNPUN `V\Y WHWLY [YHPS HUK TVYL on improving your customer experience.’

IMPROVE CUSTOMER EXPERIENCE Managing and improving customer experience has become the main challenge for financial service providers. Instant access to information and customer workflows for responsiveness, consistency, and compliance will provide a degree of personal attention to individual customerâ&#x20AC;&#x2122;s needs. By combining content and processes in new and unexpected ways, organizations can dramatically reduce process costs, transform how they engage with customers and mitigate risk.

CREATE A CENTRALIZED REPOSITORY FOR BETTER DECISION MAKING Paper is an input and not an endpoint. It is a source of acquiring information. Therefore, what you need to do is digitize all customer related paper documents and upload them in a central document management repository for instant access, view and sharing. This will give you the agility required to respond faster to customer requests, as all customer information will be available to you with a click of a button.

STANDARDIZE TASKS TO SAVE TIME AND MINIMIZE RISK Financial Institutions classify each customer case to high or low risk.

Regardless the status though, they need to acquire certain information required to adhere to the KYC legislation. This checklist of different documents and forms can be monitored through an electronic procedure that will not allowed continuing with missing parts. Additionally, because now information is in a digital form, all alternations due to new legislation are updated once and in real-time. In turn, you will be able to better monitor and track each customerâ&#x20AC;&#x2122;s on boarding status; increasing customer management and reporting.

SIMPLIFY PROCESSES TO IMPROVE CUSTOMER EXPERIENCE Use workflows to automate your manual processes. Prior to accepting a customer, whether that is a company or an individual, a corresponding file is created with all the required information and documents for validation and approval. This file is shared between

different departments such as Front office, Compliance, AML and Back office for review and approval based on the case and risk status.

Now that all the information is managed through this central repository, time spent on manual compliance checks, document sorting and information acquisition is eliminated.

Instead, everyone has instant access to what they need, anywhere, anytime; with automatic workflows designed to carry that procedure seamlessly ABOUT FILEMINDERS Fileminders is the regional leader in Enterprise Information Management solutions. The company has successfully implemented many projects for financial institutions of all sizes, by helping them optimize their info-driven business processes to attain efficiency and compliance.

Our experts analyse each critical step of a business process; design the right content management solution and ensure a smooth and undisrupted transition from paper to electronic document management, wherever this is beneficial to the business operation. More importantly, our approach provides complete control over both physical and digital information, in compliance with strict standards of data protection.

CONTACT INFORMATION:

Tel:

Fax:

e-mail: PUMV' Ă&#x201E;SLTPUKLYZ JVT J` Website: http:// ^^^ Ă&#x201E;SLTPUKLYZ com.cy

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Established in 1997

We are a professionally recognized software development company with 20 yearsâ&#x20AC;&#x2122; experience in developing software for Accounting, Audit firms and in-house Account professionals. We are the first company in Cyprus that developed a Financial Statement Preparation Software with embedded bookkeeping system in Cyprus based on the IFRS.

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Today, with more than 3000 customers and a huge experience, we are one of the leading software companies in Cyprus with many Accounting Firms and Account professionals trusting us.

Although our software has been successful in the Accounting sector, that didnâ&#x20AC;&#x2122;t stopped us from seeking improvements with more advanced technologies taking into consideration our valuable client recommendations. Our new generation software Aphrodite Accounting, is based on the latest technology in the industry, and have been developed for the professional accountant that seeks something more than just an ordinary accounting software.

Advanced Accounting

From Multi Company to Multi Currency to Consolidated Account Reporting to timesheet and billing. Advanced Custom report generator with in-house developed spreadsheet module. Custom build System reports, like Cash Flow Statement, that accepts Excel like formulas that already look familiar to users. Ability to add Notes, to financial report groupings that are printed out as a report set.

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Client Support

For us, VXSSRUWLQJ FOLHQWV DFFXUDWHO\ DQG RQ WLPH LW LV D PLVVLRQ. Our reputation for excellence in support is a direct reflection of our team of professional supporters.

We know that we work with professionals that sell time, and time it is costly. For this, we have developed our own Caller ID Station Software, that allow our staff to keep in track of each client call, store each call in a database together with the reason of call, which is bound on our Artificial Intelligence algorithm that in turn classifies client enquiries into categories, deciding and suggesting corresponding solutions to enquiries thus making it easier for our support team to service clients with accurate information and on time.

Our policy is that each client call it is answered within a maximum waiting period of one minute.

Aphrodite Accounting The Professional Accountant’s Choice

InteliSoftCY Ltd has been formed in 1997 based in Limassol Cyprus. Today, with more than nineteen (19) years’ experience, InteliSoft has an accountants network of more than one thousand five hundred (1.500) professional bookkeepers, three thousand clients (3.000) and approximately twenty five thousand (25.000) companies based their bookkeeping on its products.

Softw are Applications

Throughout the years, our team of experienced developers have worked closely with accounting professionals in order to create a state of the art business software. Our main field is business software development, specializing in Financial Statements, Bookkeeping, Invoicing, Timesheet, Payroll, Caller ID Station and customized solutions according to the client’s needs.

For The Business Minded

Next Generation Software Solutions Ac c e l e r a t e yo u r bu si ne s s p ro du c ti vi t y w i t h i nno v a ti ve s o ftw ar e

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Payroll

The goal of business performance analysis is to identify improvement opportunities, understand their root causes, and take action. We have created software to help business visualize their performance issues or areas of the business that perform extremely well and can be leveraged even further and take better decisions through our business analysis performance tools Report Generator

KPMG Digital Innovation Thriving in Exhilarating times Are you ready to thrive on the opportunities delivered by the Fourth Industrial Revolution?

Solutions for Tomorrow Delivered Now - Emerging technologies and disruptive methods, like Cloud based computing, Internet of Everything and Artificial Intelligence including Machine Learning approaches have an exponential impact on the way business is performed and the way individuals discover, explore and interact. Technology, speed and expectations have disrupted the business world, forcing organizations to change or risk extinction. The message for organizations is clear, “The past is now. Be tomorrow”.

KPMG’s Digital Innovation team focusses on utilizing emerging technologies to create innovative solutions that encapsulate KPMG skills and knowledge. The goal is to work with businesses, organizations, solution providers, researchers and individuals to create an ecosystem of solutions and communities with the ability to obtain, maintain and analyze large quantities of information; update, diagnose, and correct conditions autonomously, alert, notify, and provide valuable insight in real time and connect with individuals in a more personal, adaptive, and social way. In a nutshell, to create an environment “Where human insights meet digital thinking”.

To discuss any innovative ideas, to request assistance with developing an innovative solution, or to consider joining our KPMG Digital Innovation team, please contact the following:

George Tziortzis Board Member Head of Management Consulting T: +35722209292 E: georgetziortzis@kpmg.com

Konstantinos Botsaris Manager Digital Innovation T: +35722209220 E: kbotsaris@kpmg.com

©2017 KPMG Limited, a Cyprus limited liability company and a memberr firm of the KPMG network of independent member firms affiliated with KPMG International Co erative (“KPMG International”), a Swiss entity. All rights reserved.

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80 | GO GOLD GOL D | The Business Magazine off Cyprus C Cy Cypru pru r s

KPMG Global Fintech Pulse Survey 2016 Given the global interest in fintech, and its ongoing evolution in terms of market drivers, technologies and potential use-cases, KPMG brings you the Pulse of Fintech investment globally. Each quarter, we highlight key fintech deals, issues and challenges around the world, in addition to trends and insights related to fintech in key regions, including North America, Asia and Europe. As such, KPMG is pleased to announce the release of the Q4 2016 a quarterly analysis of global venture capital trends in the fintech sector. In this edition, we not only discuss Q4 activity, but we also look back on 2016 as a whole and examine key opportunities and trends for fintech investment in 2017. The fourth quarterly edition was published on 21 February 2017. The series analyzes the latest global trends in fintech investment, including venture capital, M&A and private equity. Below are the key findings of the KPMG 2016 fourth quarter analysis.

Total investment in fintech declined globally in 2016 Reflecting the significant amount of uncertainty that plagued the broader investment market. The ramifications of the Brexit vote in the UK, the US presidential election, a perceived slowdown in China, and significant exchange rate fluctuations along with other local factors, all conspired to make investors more cautious throughout much of the year. Total fintech funding declined almost 50 percent, falling to $25 billion from the $47 billion invested in 2015.

Despite a significant decrease in annual M&A and PE funding, activity is up The significant decline in fintech investment in 2016 was a result of a decrease in M&A and PE funding in particular.

M&A deals fell from $34 billion to $11 billion year-over-year, while PE funding dropped from $18 billion to $11 billion. However, it is important to recognize that 2015 was a significant outlier in terms of M&A dollars attributable to fintech. The level of M&A deal activity this year came second only to 2015.

Global VC investment reaches a new high on the back of the record-setting Ant Financial Deal Total VC investment for 2016 bucked the general downward investment trend. Dollars invested grew from $12.7 billion to $13.6 billion year over year, while deal activity dropped from 940 to 840 deals over the same period. A massive record-setting funding round of $4.5 billion to China-based Ant Financial significantly buoyed the VC funding total.

When looking at the results on a quarterly basis, Q4’16 saw an increase in both VC funding and deal activity related to fintech, with over $2 billion invested across 199 deals. While the increase was modest, these results suggest optimism may be returning after a significant period of uncertainty around the world.

Payments and lending are losing luster in North America In the more mature fintech markets, particularly the US, investors are starting to question whether certain fintech areas are becoming saturated. Investors have grown increasingly hesitant to invest in payments and lending platforms given the proliferation of such offerings over the past 24 months.

Allegations of wrongful practices at a leading US lending company early in 2016 likely exacerbated investors’ concerns. As a result, rather than consider new opportunities in these areas, many fintech investors in the US have focused on improving business models and scaling the businesses of their existing portfolio companies.

Despite a decrease in interest in the US, payments and lending platforms continue to garner a lot of attention in other jurisdictions, particularly those with a significant degree of unbanked individuals. Countries like India and Brazil, for example, continue to see payments and lending models as key avenues for fintech growth.

Governments are recognizing the value of fintech innovation Jurisdictions have begun to realize the important role that fintech innovation can play in facilitating financial inclusion.

They also have recognized that improving the efficiency of the banking system can improve the performance of the economy as a whole. This alignment of fintech with government objectives may be one reason why a number of governments and financial regulators have moved quickly to support the development of fintech hubs and to help fintech companies manage the regulatory challenges associated with new technologies. For example, in 2016, the UK, Australia, Singapore, Malaysia and Thailand all announced the development of regulatory sandbox programs.

A number of jurisdictions are also working together to minimize the regulatory roadblocks associated with the growth of fintech companies.

In 2016, the UK has been particularly active in this regard, creating fintech bridges with Australia, Singapore and China and announcing plans for bridges with Belgium and Canada in 2017.

Blockchain reaching a tipping point After strong investor interest in blockchain technologies throughout most of 2016, there has been some deceleration in investment as corporate investors, in particular, shift from direct investment in blockchain providers to investing in blockchain-based projects. While many believe blockchain technologies can be a game changer – whether for derivatives trading, capital markets, smart contracts, syndicated loans or cross-border payments and currency exchanges – investors are getting anxious regarding blockchain’s ability to live up to its hype. The early buzz generated by blockchain is fading as investors put pressure on companies to show that blockchain technologies are ready to evolve from test case scenarios into solutions that can be commercialized, scaled and made profitable.

In 2017, investors will likely continue to invest in blockchain technologies, but potentially at a lower burn rate than in the past as they look for blockchain to deliver on its perceived value. There may also be a push for the development of consistent standards to govern the use of blockchain technologies across organizations and jurisdictions. This pressure may come from industry groups if it does not come directly from regulators.

Trends in 2017 Given the Payment Service Directive 2 (PSD2) in Europe and the commitment to open banking by other governments and regulators, 2017 is expected to put a global spotlight on fintech that can leverage open banking and API platforms.

This spotlight will likely bring increased investor interest in complementary technologies, such as data and analytics. Among corporate investors, artificial intelligence will likely be a hot area for investment. Most banks are keenly interested in finding ways to reduce costs and see AI as a key mechanism to achieve this objective. Global tech sector giants are also expected to become more engaged in fintech opportunities. Already, companies like China-based Alibaba Group are targeting promising fintech companies as a means to expand globally. www.goldnews.com.cy | GOLD | 81

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FINTECH AND TECHNOLOGICAL INNOVATION

KPMG Global FinTech Market Deal Flow Analysis and Trends for 2017

n 2015, FinTech entered the mainstream with global investment soaring eight times compared to 2013, with a subsequent decline in 2016 due to major events such as the Brexit vote and the US election results that took investors by surprise.

Key countries that lead the way include the US, the UK, Israel and – surprisingly ¶ :^P[aLYSHUK I\[ ZPNUPÄJHU[ KLHSZ [VVR WSHJL PU *OPUH HUK V[OLY THQVY (ZPHU countries. Funding and investment rounds were deployed to a wide variety of FinTech companies globally.

One key to FinTech’s growing prominence is the diversity LENDING TECH of interests considered as ‘FinTech’. Almost every major (INCLUDING LENDING process within banking and insurance is being targeted CROWDFUNDING):

by FinTech companies globally, either to disrupt the Lending companies on the incumbents or, increasingly, to enable them to serve their list include primarily peercustomers better or reduce costs. to-peer lending platforms, While many big banks and insurers have set up their as well as underwriter and own FinTech corporate venture funds, they’ve also lending platforms using increasingly looked to partnership models with FinTech machine learning technologies companies to find an edge over their competitors. In effect, and algorithms to assess these banks have moved from unbundling services to recreditworthiness.

Pangratios P. Vanezis, bundling them – from disruption to co-creation. Part of PAYMENTS/BILLING Board Member the competitive advantage that banks have over new market TECH: Payments and billing entrants is trust. But to fully become the real-time, innovative tech companies span from solutions to and modern trusted adviser, they have to be willing and able to plug and facilitate payments processing to payment card play with FinTech companies to provide customers with an amazing, developers to subscription billing software personalized, secure, easy and inexpensive experience to better manage their tools. financial lives.

PERSONAL FINANCE/ASSET Unlike some other investment areas, FinTech is gaining momentum in MANAGEMENT: Tech companies that every region of the world – with hubs developing across Asia, Europe and help individuals manage their personal bills, North America. There are many unique factors driving interest in different accounts and/or credit, as well as their personal regions, from diversification and sub-sector diversification to growth in deal assets and investments. size and an enhanced focus on FinTech as an enabler rather than a disruptor.

MONEY TRANSFER/REMITTANCE: Payments and lending, blockchain and cloud based services (market Money transfer companies include primarily peer-to-peer platforms to transfer money monitoring and tracking) have led the way in terms of investments.

Companies such as Square, Powa technologies and Stripe are key examples of between individuals across countries.

FinTech unicorns (companies valued more than $1billion). However, it’s key BLOCKCHAIN/BITCOIN: Companies here span key software or technology firms to highlight that the increasing prospects emanate from the wide spectrum of in the distributed ledger space, ranging from verticals where FinTech can be deployed. bitcoin wallets to security providers to side While FinTech covers a diverse array of companies, business models and chains. technologies, companies generally fall into several key verticals, including:

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INSTITUTIONAL/CAPITAL MARKETS TECH: Companies either providing tools to financial institutions such as banks, hedge funds, mutual funds or other institutional investors. These range from alternative trading systems to financial modeling and analysis software.

EQUITY CROWDFUNDING: Platforms that allow a collection of individuals to provide monetary contributions for projects or companies provisioned in the form of equity.

INSURTECH: Companies creating new online carriers, brokerage and distributional platforms.

GOVERNMENTS RECOGNIZE THE VALUE OF FINTECH INNOVATION The growing interest in all the aforementioned verticals indicates that we should expect a huge increase in overall investment, probably with new verticals popping up. In 2016 we saw the rise of RegTech (Regulatory Technology). In particular, governments are recognizing the power of FinTech to achieve financial inclusion and the efficiency of the banking institution and, hence, of the economy as a whole. Governments across the globe, such as those of the UK, Australia, Singapore and Malaysia, are creating regulatory sandbox programmes.

TRENDS IN 2017 Given the Payment Service Directive 2 (PSD2) in Europe and the commitment to Open Banking by other governments and regulators, 2017 is expected to shine the global spotlight on FinTech that can leverage Open Banking and API platforms. This spotlight will likely bring increased investor interest in complementary technologies, such as data and analytics. Among corporate investors, Artificial Intelligence (AI) will likely be a hot area for investment.

Most banks are keenly interested in finding ways to reduce costs and see AI as a key mechanism to achieve this objective. Global tech sector giants are also expected to become more engaged in FinTech opportunities. Already, companies like the China-based Alibaba Group are targeting promising FinTech companies as a means to expand globally.

CROWDFUNDING –A FINTECH VERTICAL CREATING AN ALTERNATIVE FINANCING WORLD Crowdfunding is an alternative source of finance in dynamic expansion across all developed economies. It is, essentially, a way in which people, organisations and businesses – including business start-ups – can raise money through online portals (called crowdfunding platforms) to finance or re-finance their activities.

Money is subscribed mainly by individuals but also by institutions.

As opposed to traditional funding, where large amounts from one or few sources are invested for the implementation of an idea or project, crowdfunding collects smaller sums from a large group of individuals i.e. the crowd. Currently, in Europe, there is a large impetus to pass national laws to regulate and streamline crowdfunding, particularly in relation to equity and lending types of funding. Crowdfunding can be conducted through various models, such as raising money in return for equity in the project, lending-based channels, through a reward scheme or through donations. While the industry initially

attracted interest from the tech world, the creative industry and social entrepreneurs, it has now become increasingly popular for other sectors too, such as the property market and the energy sector. The alternative finance industry has thus become a vibrant industry that is developing very quickly. According to recent data, the global crowdfunding industry is estimated to have achieved a fundraising volume of $30 billion in 2016. Many EU Member States have passed national legislation to regulate crowdfunding.

The focus is on removing barriers that result from existing regulation and on fostering access to finance for SMEs and start-ups, which traditionally face obstacles to receiving initial funding through other means. Nevertheless, and contrary to popular belief, crowdfunding is a complementary tool to traditional bank lending, often used in combination to raise the necessary capital. In fact, there is now a tendency on behalf of banking institutions to offer in-house crowdfunding options to clients together with other traditional services.

The leading initiative in Cyprus has been created by KPMG and the Anirot Development Organisation. The initiative was set up in 2015 and had already become an industry leader at the national level. Crowdfunding Cyprus is a key expert in the industry, and the first to have organised a dedicated conference on crowdfunding last June, which was hailed as a great success and which aims to become an annual event. Crowdfunding Cyprus acts as an advocate and field expert, implementing research and advocacy work for crowd-related activities based on innovation, the creation of ecosystems and the drafting of frameworks and regulations. It also assists SMEs, startups and established entrepreneurs to explore crowdfunding options, either as campaigners or investors, offering complete business development, advisory and legal support.

CONTACT INFORMATION:

Headquarters Address: 14 Esperidon Str. 1087 Nicosia *`WY\Z Tel: +357 22209000/+357 22209106 Fax: +357 22513293, 22 678200 E-mail: pvanezis@ kpmg.com Website: www.kpmg.com.cy

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W

MAP FinTech

ithout a doubt the Financial Services industry is by far the most rigorously regulated economic sector. Resent year’s renewed drive towards tighter regulation has not only produced a growing body of regulation, it has also seen the restructuring and reorganization of regulatory authorities. /V^L]LY YLN\SH[VY` KPZWHYP[` HTVUN L]LU [OL SHYNLY NSVIHS ÄUHUJPHS JLU[LYZ TLHUZ that navigating through divergent regulatory structures has become a logistical burden for institutions, particularly those servicing clients in multiple jurisdictions.

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ENTER MAP FINTECH! “At the core of our business philosophy, and in fact MAP Fintech’s raison d’être, is: xour commitment towards designing solutions that address the growing needs of our Clients (in such areas as regulatory and financial reporting and customised risk management), and x to meet these needs in congruence with our Clients’ systems and procedures so as not to burden their operational efficiency.”

Say’s Christodoulos Papadopoulos CEO of MAP Fintech.

RELIABLE MAP Fintech is able to deliver best in class services on the back of its in-house developed automation technology which is integrated to Clients’ systems facilitating reliable data extraction, enrichment, valuation and output generation.

FLEXIBLE The Northern Star allowing us to guide our Clients through the regu-

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latory universe is our proprietary Polaris Reporting Hub Platform. Polaris not only facilitates control over the process, it also delivers unparalleled flexibility to quickly adapt to new and evolving regulations.

Polaris also forms a space to connect our Clients, regulatory repositories, various competent authorities and MAP Fintech as needed.

ENTHUSIASTIC Our team comprises professionals with diverse backgrounds and expertise that share a commitment to excellence and the enthusiasm to conceive and deliver innovative solutions. Our Clients are also our partners and we are committed to continual learning through our interaction.

CRS REPORTING DEADLINE APPROACHING FAST Prompted in part by the ratification by the US authorities of the Foreign Account Tax Compliance Act in 2010 or FATCA (first submissions in 2016) the Organization for Economic Co-operation and Development (OECD) drafted the Standard for Automatic Exchange of Financial Account Information, more commonly known as the Common Reporting Standards or CRS. CRS sets out the framework under which Jurisdictions that endorse the agreement exchange prescribed information regarding accounts held

by Participating Countriesâ&#x20AC;&#x2122; tax residence in their own Jurisdictions.

The deadline for CRS submissions to the competent authorities in Cyprus is 30 June 2017. Is your company ready?

DREAD NOT! MAP FINTECH HAS THE SOLUTION! Within the context of the â&#x20AC;&#x153;single interphaseâ&#x20AC;? flexibility afforded

Polaris Reporting Hub, MAP FinTech developed a solution to address Clientsâ&#x20AC;&#x2122; CRS reporting needs.

Once data is imported, our systems perform data enrichment and validations and allow our clients to make amendments if needed ahead of submission. Our platform allows you to monitor the reporting process, provide an audit trail of all submitted reports and provides a range of tools to extract statistical data. For your ease our platform also allows you to customize your viewing options.

CONTACT INFORMATION:

Address: (YJOIPZOVW 4HRHYPVZ 000 (]LU\L (THYHU[VU *V\Y[ YK Floor, Mesa Geitonia, 4003 Limassol, *`WY\Z Tel: (+ 357) 25351335 e-mail: PUMV'THWĂ&#x201E;U[LJO JVT Website: O[[W! THWĂ&#x201E;U[LJO JVT

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SAS

Going Digital: The Transformation of the traditional Banking model nterview with Chrysostomos Kritiotis, Sales Manager, SAS Greece, Cyprus, Bulgaria.

Let’s start with the basics. How would you define “digital” in banking?

To define digital in banking, I will borrow the words of Neal Cross, Chief Innovation Officer at DBS Bank, who says that: “Digital is all about making what can be seen unseen – making services so smooth and seamless that it becomes invisible to the customer. Despite all the automation and improvements that digital banking has the potential to achieve, customers and their needs still form the very core of the banking sector.”

Digitalization impacts everything and everyone. Digital disruption isn’t an isolated event but is something that has repeatedly occurred over the last decades, impacting at times different types of industry segments. Banking is one of the last industries that we have seen working towards its digital transformation.

What do you believe are the drivers of digitalization in Banking?

Digitalization is both a trend and a necessity for Banks. A necessity to remain relevant and competitive against new entrants in the market, like FinTech start-ups, “challenger banks” and even technology companies like Google and Facebook.

In my opinion, digitalization is driven by three major factors: x Customer Experience: Customers expect a seamless multichannel experience and consistent service. Thus banks need to adapt their existing service models to changing customer expectations and cost-awareness. x Access to Technology: Digital technology is more affordable and accessible by everyone, now more than ever. Cost-effective digital infrastructure pro-

88 | GOLD | The Business Magazine of Cyprus

vides customers with access to information and services anytime and anywhere. x Operational and Financial Benefits: Digitalization provides new opportunities for increased revenues, lower costs and increased operational efficiency. As per McKinsey, digitizing information-intensive processes can cut costs by up to 90% while improving turnaround times. New affordable technologies allow Banks to collect, analyze and present information much easier and faster, providing the opportunity for better strategic decision making, performance management and risk management.

What is the biggest challenge traditional banks face in their move to become a ‘digital bank’?

Digitizing a traditional bank is like redesigning a car while driving. There are many challenges to be faced but there are two I would like to highlight.

The first challenge is cultural change. Everyone in the organisation needs to be convinced of the benefits of this process so that they become part of this change. Resistance to change brings obstacles in the transformation process causing digitalization initiatives to fail.

The second challenge is regulation. Banking is a heavily regulated industry. In some cases, regulation significantly compromises the competitiveness and agility of Banks, making them unable to respond to the new requirements and expectations of the “digital customer”.

One example is the adoption of cloud technologies, which is discussed with much scepticism by regulators. Another example is data treatment, as an essential part of the digital economy and the balance that needs to be struck between protecting the consumer private data and protecting the analytics that lie at the heart of competition in the data economy.

What are the opportunities for a Bank to go digital?

I believe it is very important to enhance the customer experience and, by extent, strengthen customer retention and customer acquisition.

Well-developed digital channels create opportunities for Banks to expand their market share while retaining their existing clientele.

The foundation of these opportunities is the data that digital channel transactions generate on customer behaviour, such as buying habits.

Data, from multiple channels, can provide a complete picture of customers’ behaviours. This leads to better understanding of the customer and helps in personalizing the customer experience. Data can also provide insight into customers’ emerging needs, so Banks that focus on improving digital channels today can potentially reap rewards for the future.

So Data and Analytics are essential in a digital transformation initiative for a Bank?

I would say that data and analytics are at the core of such initiatives.

Digital banking channels give Banks access to customer data that is generated in real-time and is unprecedented in its volume and detail.

Analytics programs help Banks thoroughly understand their customers, so they can design products and services that better meet the needs of each and every unique customer. These tools can also facilitate more efficient customer service in the increasingly Omnichannel environment.

With analytics tools providing real-time decisioning of personalized communications to customers who are in-session, Banks can accelerate progress to simultaneously improve satisfaction, revenues and profits.

SAS is a leader in the area of analytics. In what ways do you help your customers transform their process and operations to become more digital?

SAS provides an end-to-end, integrated technological framework to support the design and implementation of a robust analytical infra-

structure within the organisation. It provides capabilities for collecting data from disparate sources within the organisation, even in real-time, appropriately cleaning and preparing this data, analyzing and exploring it and finally presenting actionable insights through reports and visualizations to the end user.

Based on this enterprise-wide analytical foundation, SAS delivers solutions that consistently meet regulatory as well as internal requirements. One significant benefit of this “consistent” approach is that there is a common point of reference from a data perspective. For example, information that is being collected and deposited in a common data repository for the evaluation of the regulatory credit risk of a customer, can also be used for assessing its behaviour for more targeted marketing campaigns.

SAS has worked with numerous Banks around the world in providing analytical based solutions in their efforts to digitalize their businesses. For example we helped Raiffeisen move from a product-oriented Banking approach to a customer-oriented approach. We helped Unicredit have real-time insight into how customers first interact with the bank, what the logical nextbest offers should be and how to best retain customers moving forward. We supported RBS in its efforts to make more robust data-driven real time decisions, transform its organisational processes and deliver better customer service. Furthermore, SAS has helped organisations digitalize their credit granting processes, with real-time assessment of the creditworthiness of the customer applying for a credit facility.

SAS strongly believes that the ability to extract information from data is key to making the transformation to a digital bank a success and to be ahead of the competition. This is what SAS has been offering Banks over the last 40 years.

CONTACT INFORMATION:

Headquarters Address: 3, Artemidos Street, Marousi, 15125 Athens, Greece, Tel: (+30) 2106898730 Fax: (+30) 2106898715 e-mail: sasgreece@eur.sas. com Website: www.sas.com *`WY\Z 6MÄJL Tel: (+357) 22269665

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FINTECH AND TECHNOLOGICAL INNOVATION

UIBS UNITED BUSINESS SOLUTIONS LTD

UP[LK )\ZPULZZ :VS\[PVUZ HRH <0): H SLHKLY PU 4PJYVZVM[Â&#x17D; SPJLUZPUN HYJOP[LJ[\YL KLWSV`TLU[ KL]LSVWTLU[ PUMYHZ[Y\J[\YL HUK KPZ[YPI\[PVU VM LU[LYWYPZL HUK TPK ZPaLK W\ISPJ HUK WYP]H[L JSV\K ZVS\[PVUZ HUK \UPĂ&#x201E;LK JVTT\UPJH[PVUZ ZLY]PUN [OL Ă&#x201E;U[LJO ZOPWWPUN OVZWP[HSP[` Ă&#x201E;UHUJPHS YLHS LZ[H[L HUK I\ZPULZZ ZLJ[VY >P[O YLHS ^VYSK L_WLY[PZL VU ^VYSK^PKL YLHJO [V V]LY JV\U[YPLZ HJYVZZ [OL NSVIL <0): YLJLP]LZ [OL (a\YL *PYJSL 7HY[ULY KPZ[PUJ[PVU HUK ZVS]LZ I\ZPULZZ WYVISLTZ [OYV\NO [LJOUVSVN` ZVS\[PVUZ 0Z HU HJ[P]L TLTILY VM [OL 4PJYVZVM[Â&#x17D; 7HY[ULY 7YVNYHT ^P[O NVSK Z[H[\Z *`WY\Z :OPWWPUN *OHTILY HUK 0*; :\I *VTTP[[LL HUK H M\SS TLTILY VM [OL *`WY\Z *OHTILY VM *VTTLYJL HUK 0UK\Z[Y` HUK JLSLIYH[LZ P[Z [O `LHY HUUP]LYZHY` I` PUĂ&#x2026;\LUJPUN Z\WWVY[PUN HUK LUHISPUN [OV\ZHUKZ [V HJOPL]L [OLPY NVHSZ

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CLOUD, WEB APPLICATION DESIGN & DEVELOPMENT UIBS develops proprietary cloud applications on MicrosoftÂŽ and Azure development framework. Powered by a team of certified experts we drive the delivery of effective responsive websites that adapt to the device of each visitor for desktop, smartphone, or tablet in sophisticated user interface designs that are intuitive, functional and aesthetically pleasing.

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MANAGED MICROSOFT IT SERVICES To further reduce costs and improve efficiencies, we provide superior Microsoft Infrastructure and application outsourcing, allowing organisations to focus on strategic initiatives by offering: x On-premise on-cloud IT services x Configuration x Support Services x Consulting LICENSING & SAM SOFTWARE ASSET MANAGEMENT SOLUTIONS Volume licensing is complex but through a managed procedure, UIBS, a trusted worldwide SAM expert, simplifies procurement and increases efficiency while supporting each clientâ&#x20AC;&#x2122;s strategic business vision.

CLOUD FINANCIAL SOLUTIONS UIBScfs is a joined partnership with BAE Systems to provide cloud financial solution based on Microsoft Azure platform.

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UIBScfs is the ultimate leader in addressing both the compliance and security needs of enterprise customers. Its best-in-class data centers and processes, coupled with its extensive know-how in evolving compliance requirements, set it apart from its competitor. UIBS BAE Systems mission is to make security easily available and affordable for all financial institutions in all parts of the world. UIBScfsâ&#x20AC;&#x2122;s centralized security is a complete end to-end solution. We provide the multi-layered technology, security engineers, data centers, bandwidth, disaster recovery, certifications, processes, and redundancies required for a complete security infrastructure.

UIBSCRM TRANSFORM THE WAY YOU DO BUSINESS Capture new opportunities across your organization when you bring people, data, and processes together with Microsoft UIBScrm Outlook Cloud Solutionâ&#x20AC;&#x201D;intelligent business applications that help you manage and run your entire business while better engaging customers. Drive your digital transformation with UIBScrm and PowerBI Grow, evolve, and transform every part of your business to better meet the changing market and needs of your customers.

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CALL CENTER +357 7777 [UiBS] 8427 info@uibs.com www.uibs.com UiBS United Business Solutions Ltd 2005-2015. 1 Agias Zonis Street, Pentadromos Centre, Office B401, CY-3026, Limassol, Cyprus. All Rights Reserved.

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ZEBRA CONSULTANTS

Digital Transformation. Why change? Why now? Why open source?

Why Red Hat?

here are a number of challenges faced by organizations today in the Financial Industry. Compliance with certain regulations and directives, digital disruption, open standards, systems integration, processes automation, mobility, applications development acceleration, are just some of those challenges. FinTech companies OH]L HSYLHK` JOHUNLK [OL ^H` ÄUHUJPHS ZLY]PJLZ HYL KLSP]LYLK [V JVUZ\TLYZ ;OLYLMVYL [OL ULLK [V JOHUNL [OL ^H` [YHKP[PVUHS ÄUHUJPHS PUZ[P[\[PVUZ VWLYH[L PZ H necessity, and digital transformation is the key to that success.

Digital Transformation is an ongoing journey and if your organization the Gartner Magic Quadrant, has yet to embark on that journey, it should start moving towards that 3scale can handle hundreds of direction the soonest possible. As per the latest research by MIT Sloan millions APIs calls per day.

Management Review and Deloitte, 87% of IT leaders anticipate that their industries will be disrupted by digital trends but only 44% say RED HAT JBOSS FUSE that their organizations are adequately preparing for that disruption Enterprises are becomto come. Now, as per Gartner research, we still see 70% of IT ing increasingly conspending in maintaining existing systems, 19% for growing and nected, enabling digonly 11% for digital transformation. Based on these findings ital transformations, there is still a lot of space for improvement. increasing productivity, So which solutions are out there which can help you tackle and facilitating rapid intoday’s challenges? It is widely accepted that open source solutions novation. Red Hat JBoss Christodoulou, drive rapid innovation. As per open source survey conducted by Black George Fuse is an integration Managing Director Duck Software, 78% of enterprises today run open source solutions. platform which reduces This shows that organizations today have indeed embraced open the pain of connecting source technologies. Red Hat, being the leading open source company in applications, services, processes, and the world, has a significant role to play offering robust, enterprise-ready devices for comprehensive and effiopen source solutions. cient solutions.

3SCALE API MANAGEMENT PLATFORM The use of open APIs meeting the EU Payment Services Directive (PSD2) pushes the banks to proceed with the implementation of an API Management Platform offering open APIs. 3scale by Red Hat is a solution which can help the banks meet that directive.

Recognized as a leader in

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RED HAT JBOSS BPM SUITE Red Hat JBoss BPM Suite combines business process management (BPM), business rules management (BRM), business resource planning and complex event processing (CEP) technologies into a single, integrated, open source platform. It enables users to capture business policies and procedures, automate business operations, and measure the results of business activities across heterogeneous environments including physical, virtual, mobile, and cloud.

â&#x20AC;&#x153; This collaboration agreement with Red Hat will help us to capitalize on the opportunities offered by cloud computing technologies, in order to continue making Z[YPKLZ PU V\Y WYVJLZZ VM ILJVTPUN H TVYL Ă&#x2026;L_PISL HUK ZJHSHISL KPNP[HS IHUR š â&#x20AC;&#x201C; RICARDO MORENO, HEAD OF ENGINEERING, BBVA

RED HAT MOBILE APPLICATION PLATFORM Red Hat Mobile Application Platform brings together agility and centralized control for mobile innovation and a competitive edge.

This product offers a suite of features that embrace collaborative app development, centralized control of security and back-end integration, and a range of cloud deployments.

RED HAT OPENSHIFT CONTAINER PLATFORM Red Hat OpenShift Container Platform helps organizations develop, deploy, and manage existing and container-based applications seamlessly across physical, virtual, and public cloud infrastructures.

Built on proven open source technologies, OpenShift Container Platform helps application development and IT operations teams modernize applications, deliver new services, and accelerate development processes.

BLOCKCHAIN-AS-A-SERVICE (BAAS) Blockchain is considered to be a secure distributed database which contains a continuously growing list of records. Recently, BlockApps became the first blockchain application to run on Red Hat OpenShift Container Platform which helps financial institutions to build hosted blockchain solutions. Red Hat believes in blockchainâ&#x20AC;&#x2122;s potential, and that a flexible open source and container-based platform offers an ideal platform for blockchain and FinTech applications.

ABOUT RED HAT Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to provide reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As a connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at www.redhat.com.

ABOUT ZEBRA ZEBRA Consultants is an innovative IT company that specializes in software development, infrastructure solutions, consulting services, systems integration and cloud solutions. ZEBRA being the only Red Hat Premier Business Partner in the region, provides qualitative Red Hat and JBoss Middleware solutions and services in diverse markets. ZEBRA Consultants mission is to equip its clients with the tools to compete in todayâ&#x20AC;&#x2122;s global market, in a time when harnessing technologyâ&#x20AC;&#x2122;s power is not only necessary but imperative. Our expertise, coupled with our customer driven focus, allows our clients to tackle their technological challenges, boosting up competitiveness and maximizing their potential. For further information please visit www.zebrac.com.

â&#x20AC;&#x153; We are pleased to be collaborating with Red Hat to provide an innovation platform for our innovation engineers. The use of [Red Hat] OpenShift [Container Platform] enables us to maximize the chances of our best ideas reaching the hands of our customers.â&#x20AC;?

CONTACT INFORMATION:

Address: 131, Athalassa AveU\L 6MĂ&#x201E;JL Strovolos, Nicosia, Cyprus Postal Address: P.O. )V_ 5PJVZPH Cyprus Tel: Fax: e-mail: info@zebrac.com Website: www.zebrac.com

â&#x20AC;&#x201C; RICHARD CROOK, HEAD OF INNOVATION ENGINEERING, ROYAL BANK OF SCOTLAND

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| COMPLIANCE |

Founded in 1977 in the USA, LexisNexis started as a pioneer in the electronic accessibility of legal and journalistic documents and is considered today a worldleading provider of information and analytics as well as solutions and decision tools that assist customers in predicting risk and enhancing operational efficiency. Anthony Carey, Director, EMEA Channels, LexisNexis Risk Solutions, tells GOLD about the use of technology within compliance, the growing need for a frictionless transaction environment and the emerging trend of building consortia.

ENSURING

COMPLIANCE LexisNexis THROUGH TECHNOLOGY

By Artemis Constantinidou

94 | GOLD | The Business Magazine of Cyprus

Gold: In a few words, what does LexisNexis do?

Anthony Carey: LexisNexis Risk Solutions is a data and analytics company that enables customers to detect, evaluate and manage risk. We bring a vast data repository to the marketplace, and high-performance open-sourced technology – HPCC Systems – analytic linking capabilities and advanced analytics, like machine learning, all coupled with deep domain expertise in risk and compliance and the industries we serve.

Gold: What types of solutions does the company offer?

A.C.: We offer watchlist screening, customer due diligence and enhanced due diligence solutions for the prevention of money laundering, bribery and corruption. We also offer fraud and identity verification as well as identity authentication solutions.

Gold: What is your main client base?

A.C.: We have clients across the globe. The world’s biggest banks work with us, while recognizable industry leaders in the ecommerce, digital economies and payments space also select us.

Gold: How is LexisNexis Risk Solutions different from other companies offering similar services?

A.C.: We combine unparalleled data assets with proven technology, analytic linking and advanced analytics to provide a robust and reliable enhanced due diligence platform.

Gold: What developments do you expect to see in the near future as regards risk solutions?

A.C.: Our customers’ need for creating a frictionless transaction environment for their own customers is growing in importance. So the question is: How do companies protect themselves and their reputation while, at the same time, making it easy for customers to do business with them?

Gold: What has been the company’s greatest achievement in recent years?

A.C.: The world in which our customers operate is extremely complex. More and more, they have a moral obligation to solve major societal issues like financial

inclusion and financial transparency.

The cost of failure for not meeting this obligation is significant and results in front-page, reputation-altering headlines coupled with hefty fines. So perhaps one of the greatest achievements of our company has been the ability to create risk information ecosystems that bring peer companies together to form consortia.

By creating these consortia, companies, like banks, can better control and leverage the value of their data and become more efficient, especially in this era of heavy operational workload. In addition, these consortia dramatically improve the customer onboarding process. We help our customers be better businesses while, at the same time, enabling them to improve the customer experience.

We’re always looking for ways to innovate. Another major accomplishment is our effort to bring more insight around virtual currency transactions. The lack of transparency on the blockchain has been a

THE EMERGING TREND WE’RE TALKING ABOUT MOST FREQUENTLY IS AROUND BUILDING CONSORTIA hurdle for virtual currency companies and banks. We’re helping to unmask identities on the blockchain so that greater transparency can be gained and virtual currency exchanges can thrive and reach their potential in the marketplace. Last year, we formed an alliance with a blockchain intelligence company. As a result, bitcoin companies now have access to the same bank-grade anti-money laundering controls that the biggest financial institutions in the world use, those tthat regulators already know and respect.

Gold: How has people’s perception of compliance changed over the years and how does this translate into the role it currently plays in most companies?

A.C.: Regulators around the world are putting teeth into their compliance laws, which is evidenced by the MAS actions taken last year to tighten anti-money laundering controls, going so far as to shutter banks that were not complying.

Financial institutions and companies in other industries, too, are under increased scrutiny so we think that there is a real perception change around the role of technology in compliance. Different regions around the world are at different stages of leveraging technology. The True Cost of AML Compliance study we conducted in Asia last year showed that personnel costs accounted for 81% of AML compliance spending in Asia, while technology costs were only 19% of AML budgets. In Asia great opportunities exist to leverage technology. From a global perspective, anti-money laundering operations increasingly rely on sophisticated technology to automate behaviour analysis and entity screening and to support analysis workflow and decisioning. More efficiency will be driven as companies rethink how they are using data, analytic linking and technology in their compliance departments.

What is the biggest technological trend in the financial services sector now and what type of solutions do you provide to meet the corresponding needs?

The emerging trend we’re talking about most frequently is around building consortia, as mentioned earlier, which are also known as utilities. The consortia are created among peers and require a sophisticated high-performance technology foundation to make them viable. In another survey we conducted on the topic of financial inclusion and financial transparency, 79% of respondents agreed that they would be willing to collaborate with peer institutions to streamline onboarding, KYC activity, etc. Another interesting finding from this global study showed that 78% of respondents agreed that the benefits of being part of a global customer due diligence utility outweighed the hurdles of participating.

This is an exciting space because it really is the next generation of compliance. We are one of the few companies in the world that has a Big Data technology that can move consortia from concept to real-world implementation. www.goldnews.com.cy | GOLD | 95

| EUROPE |

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ow do you feel about the UKâ&#x20AC;&#x2122;s decision to withdraw from the European Union?

Jean-Eric Paquet: We regret the United Kingdomâ&#x20AC;&#x2122;s decision to leave the European Union but we respect it. We will soon begin negotiations on its orderly withdrawal from the EU, which we will approach constructively. Our goal is to reach an agreement. For us, it is clear that if you want to divorce but remain friends on the basis of a new relationship, you first need to agree on an orderly separation.

The sooner we agree on the principles of an orderly withdrawal, the sooner we can prepare our future relationship. In the future, we hope to have the United Kingdom as a close partner.

Gold: At this time of the EUâ&#x20AC;&#x2122;s 60th anniversary celebrations, are you confident that the Union has a bright future?

J-E.P.: Rome was not simply a birthday celebration. It marked the birth of the EU at 27 and of a new chapter in our history.

At this important juncture, the Commissionâ&#x20AC;&#x2122;s White Paper on the future of

Europe presents a number of scenarios forr how the EU could evolve, depending on the decisions we make. The starting pointt for all of them is our unity at 27. Globali-sation, security and a changing society and the development in the world of work are profoundly affecting the daily lives of Europeans. There are as many challenges as there are opportunities. There is no better time â&#x20AC;&#x201C; and there is no other time â&#x20AC;&#x201C; than now to have this debate. This is about our people. This is about our future. This is the beginning of an honest, open debate on our future. It is time to bridge the gap between what people expect of Europe and what Europe is able to deliver. The end goal is to reach a unifying consensus on how best we can move forward.

Europe must now choose. This can be Europeâ&#x20AC;&#x2122;s hour, but it can only be seized by all 27 Member States acting together with common resolve.

Gold: Do the anti-EU and â&#x20AC;&#x2DC;populistâ&#x20AC;&#x2122; party successes across Europe cause you particular concern?

J-E.P.: As President Juncker has already said â&#x20AC;&#x153;The populists are spreading slogans.

We have to offer solutions and answers.â&#x20AC;?

He also usually warns politicians not to imitate populist parties as, in the end, the people vote for the original.

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Jean-Eric Paquet began his career in the European Commission in 1993 in the Directorate-General for Transport, in the International Relations area, and later as assistant to the Transport Director General, Robert Coleman. In 1999 he joined WKH RĎ&#x201E;FH RI *XQWKHU 9HUKHXJHQ (Member of the European Commission in charge of enlargement).

In 2002 he became the Deputy +HDG RI 2Ď&#x201E;FH RI 3KLOLSSH %XVTXLQ member of the European Commission in charge of Research policy.

Paquet was EU Ambassador to the Islamic Republic of Mauritania between 2004 and 2007. He returned to transport in 2007 where he led the development of the Trans-European Transport Network policy. As Director for the European Mobility Network, he was responsible for Europeâ&#x20AC;&#x2122;s transport infrastructure policy and investment strategies, the single European rail area, inland waterways and port policy.

He joined DG Enlargement in November 2013 where he took over the Directorate in charge of UHODWLRQV ZLWK $OEDQLD %RVQLD Herzegovina, Serbia and Kosovo.

In January 2015, he became DirecWRU IRU :HVWHUQ %DONDQV DGGLQJ Montenegro and the Former Yugoslav Republic of Macedonia to his portfolio.In November 2015, he was appointed Deputy Secretary General of the European Commission UHVSRQVLEOH IRU %HWWHU 5HJXODWLRQ and Policy Coordination (economic governance, internal market and FRPSHWLWLYHQHVV UHVRXUFH HĎ&#x201E;FLHQcy and employment, education and social policies).

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| EUROPE |

Gold: You will be speaking in Nicosia on â&#x20AC;&#x153;Cyprus through the eyes of the European Commissionâ&#x20AC;?. There was considerable anti-EU feeling in Cyprus following the 2013 bail-in of depositors of Laiki Bank and Bank of Cyprus. Can you understand why people felt let down by the Union?

J-E.P.: At the end of June 2012, Cyprus received an economic programme to address financial, fiscal and structural challenges. The purpose of the programme was to restore the soundness of the Cypriot banking sector and to rebuild depositorsâ&#x20AC;&#x2122; and market confidence; to correct the excessive general government deficit; and to support competitiveness and sustainable and balanced growth.

Given the magnitude of the challenges faced, Cyprus had to implement difficult but essential reforms in the financial and public sectors. The sacrifices made by the Cypriot people during these few years have not been in vain. The policies implemented by the Cypriot government are now bearing fruit. After three years of recession, Cyprus has returned to healthy economic growth since 2015 and last year posted one of the highest growth rates in the euro area.

Throughout this period, the EU stood behind Cyprus, providing much-needed financial support as well as technical assistance to help Cyprus emerge from the crisis. For instance, to ensure a smooth transition after Cyprusâ&#x20AC;&#x2122; successful exit from the economic programme, the EU agreed to increase its co-financing of projects in Cyprus from 50% to 85%, until the current regional and social policy programming period ends in 2020. This will relieve the Cypriot budget by â&#x201A;Ź99 million. Furthermore, Cyprus is one of the main beneficiaries of the European Structural and Investment Funds and is eligible to receive some â&#x201A;Ź874 million from the Funds between 2014 and 2020, which represents almost a quarter of national public investment.

98 | GOLD | The Business Magazine of Cyprus

1LHU 5PJVZPH ,JV ,YPJ 7HX\L[ ^PSS HK KYLZZ [OL UVTPJ *VUN [O YLZZ W VU ;\LZKH` YLZLU[LK I` (SWOH ) HUR ( W YPS H[ [OL /PS[V 4HPU :WVUZ U 7HYR /V[LS 5PJVZP H VY! Alpha B :WVUZVYZ! A an (CIM), G.A.P yia Napa Marina, Cyp k Cyprus Ltd . Vassilopo ru s Institute ulos Group Ltd, Trust In , KPMG Lim of Marketing te ited, TFI Mar >P[O [OL Z\ rnational Insurance C kets om WWVY[ VM! Th e European pany (Cyprus) Ltd Commission â&#x20AC;&#x2DC;Breaking Th pr oject e Mou 6YNHUPZLYZ! 0UZ[P[\[L VM * ldâ&#x20AC;&#x2122; LY[PĂ&#x201E;LK 7\I Accountan SPJ ts of C *VVYKPUH[V yprus, GOLD Y! IMH

*`WY\Z PZ LSPNPISL [V YLJLP]L ZVTL Ă TPSSPVU MYVT [OL ,\YVWLHU :[Y\J[\YHS HUK 0U]LZ[TLU[ -\UKZ IL[^LLU HUK Gold: As part of the Troika of international lenders, how do you view the countryâ&#x20AC;&#x2122;s achievement of exiting the Economic Adjustment Programme ahead of schedule?

J-E.P.: During the programme and thanks to committed reform efforts, Cyprus has indeed managed to emerge from recession, stabilised its financial sector and consolidated its public finances faster than expected.

Key structural reforms that were implemented during the programme include the overhaul of insolvency and foreclosure frameworks, the modernisation of public financial management and revenue administration as well as introduction of the Guaranteed Minimum Income. Importantly, the reforms implemented during the programme were designed to minimise the negative impact on the lowest income groups.

As mentioned earlier, Cyprus has now been enjoying a solid recovery, which has also translated into the improvement of the labour market. Looking ahead, it is essential to build on all the progress made so far to finalise the structural reforms that Cyprus needs to ensure sustainable and inclusive growth.

Gold: How does the Commission view Cyprusâ&#x20AC;&#x2122; broad economic prospects today?

J-E.P.: Cyprus is experiencing a solid economic recovery and growth is expected to

remain robust. Inflation is projected to turn moderately positive this year and the labour market is expected to perform strongly. The situation in the financial sector has improved. To sustain these trends in the future, continued prudent fiscal policy and a renewed reform momentum are crucial. For instance, although deleveraging efforts are already ongoing, the high level of non-performing loans still needs to be addressed.

Gold: How significant will a resolution (or non-resolution) of the longstanding â&#x20AC;&#x2DC;Cyprus Problemâ&#x20AC;&#x2122; be to the EU and the European Commission? Could the EU/EC play a greater role in efforts to bring about a settlement?

J-E.P.: Since becoming President of the Commission, President Juncker has taken a personal interest in the unification of Cyprus and the Commission has actively supported the settlement process and continues to do so. This is a United Nations-led process which has always benefited from the Commissionâ&#x20AC;&#x2122;s full support. I would like to reiterate our readiness to help in whatever practical way both parties and the United Nations would find useful.

BOOK SHELF

BOOKS of the month 1

The inside story of the Libor scandal

2

3

How to be a successful manager of people

How and why women work below their level of competence

4

A collection of 71 short essays on new and old economic theories

5

A 50-yearROG·V venture into the world of start-ups

1.

2.

3.

4.

In 2006, a group of bankers, traders and brokers made a startling realization: Libor (the London Interbank Offered Rate, which determines interest rates on loans worldwide) was set daily by a small group of easily manipulated administrators, and that they could reap huge profits by nudging it fractions of a percent to suit their trading portfolios.

This is the story of the scam and how the crooks were caught.

The right balance between being obnoxiously aggressive and ruinously empathetic is something that many managers fail to achieve.

The author believes that great bosses have a strong relationship with their employees and she has identified ways of building such relationships. They involve praise as well as criticism, which not only produce better results but help employees develop their skills and success.

The 1960s bestseller The Peter Principle argued that most men will inevitably be promoted to one level beyond their competence but Schuller’s book shows how women today face the opposite scenario, hence its subtitle How and Why Women Work Below Their Level of Competence. An absorbing and well-reasoned analysis of what holds today’s women back, the obstacles that many of them face and how gender impacts on working life.

In the light of the global financial crisis, many economic ideas have lost their relevance. This fascinating, thought-provoking collection of 71 short essays, written by respected economists and social scientists from all over the world, reports on cutting-edge advances in economics while revealing the weaknesses of several core concepts. It will appeal to anyone interested in scientific progress and the further development of economics.

THE SPIDER NETWORK

By David Enrich (W.H. Allen, 2017) RRP: £14.99 (£10.49 FROM AMAZON.CO.UK)

RADICAL CANDOR: HOW TO BE A GREAT BOSS WITHOUT LOSING YOUR HUMANITY

By Kim Scott (Macmillan, 2017) RRP: £18.99 (£15.90 FROM AMAZON.CO.UK)

THE PAULA PRINCIPLE

By Tom Schuller (Scribe UK, 2017) RRP: £14.99 (£14.99 FROM AMAZON.CO.UK)

5.

ECONOMIC IDEAS YOU SHOULD FORGET

By Bruno S. Frey & David Iselin (Springer, 2017) RRP: £16.50 (£16.50 FROM AMAZON.CO.UK)

DISRUPTED: MY MISADVENTURE IN THE START-UP BUBBLE

By Dan Lyons (Hachette Books, 2017) RRP: £13.02 (£12.82 FROM AMAZON.CO.UK)

A successful magazine writer until he lost his job aged 50, Lyons decided to head for Silicon Valley and join the tech explosion he had been reporting on. The often hilarious tale of his time at Hubspot, which had obtained $100 million in venture capital, is an insider’s look at a technology start-up from an outsider’s perspective and a broader commentary on today’s business culture.

www.goldnews.com.cy | GOLD | 99

IN GOOD COMPANY

GROWING TOGETHER +2: 3$),/,$ (1&285$*(6 7($0:25. %< &5($7,1* $ )$0,/< 7<3( $70263+(5( ,1 :+,&+ $// 0(0%(56 2) 67$)) $5( +(/3(' 21 7+(,5 3(5621$/ $1' 352)(66,21$/ -2851(< By Voula Loizou | Photos by Christos Tsekouras

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100 | GOLD | The Business Magazine of Cyprus

F

ounded in 1977, Pafilia is the largest privately owned residential developer in Cyprus, renowned for its pioneering approach to construction projects. The group is owned-managed by Elias Eliades and currently has over 300 employees. Over the years, Pafilia has created landmark developments, built to the highest standards, that have set a new benchmark for the sector. Marianna Efstathiou, HR Manager at Pafilia, says “We are dedicated to delivering the best in concept, design and quality with the best service. Our new flagship projects – ONE in Limassol, and Minthis Hills Golf Resort in Paphos – redefine the way we perceive luxury living.”

Employee satisfaction is an important pillar of the success of Pafilia, according to Efstathiou. “We are dedicated to ensuring that we maintain a pleasant working environment.

Pafilia continuously focuses on creating and reinforcing job satisfaction, ensuring appropriate employee recognition and growth, and offering career development and progression opportunities. We are delighted to see that our efforts are appreciated and are paying off. We consider the overall attitude of our employees, their loyalty and commitment, the positive workplace climate and competitive intelligence culture as well high levels or employee retention, as key indicators of job satisfaction,” she explains.

Pafilia’s corporate culture and philosophy embrace change and thinking outside the box as integral parts of the company’s business mentality, Efstathiou states, adding, “This applies not only to the projects we plan and deliver but also to our working environment.

We encourage our employees to be confident in themselves and to come forward with suggestions and proposals for how we can progress as a company, both regarding our projects and the way we operate as a business.”

The Group is an ‘Equal Opportunity Employer’ committed to providing a working environment free of any form of discrimina-

www.goldnews.com.cy | GOLD | 101

IN GOOD COMPANY

tion. Efstathiou describes the working environment as “a living organism, a family, whose operation relies on each and every one of its individual that comprises it.” She goes to note that every member of staff is treated with the utmost respect and is given a chance and the tools to grow and evolve both professionally and personally.

Pafilia is dedicated to providing an exceptional employee experience, that allows the staff to pursue their potential and goals, says Marianna Efstathiou. The company employs a multifaceted approach to educating and equipping its employees to reach their potential and evolve into confident, complete professionals and, through a performance management system that fosters a culture of meritocracy, it also places particular emphasis on providing them with opportunities to progress within the company and the management has established an embracing and open connection with all members of staff. “Our employees can take advantage of finding themselves in a friendly working environment with top quality employment conditions and the tools to help them evolve and develop professionally, plus opportunities to progress through different posts within the company structure. As a result they feel appreciated and part of the Pafilia family, knowing we are growing together”, Efstathiou says.

The HR Manager goes on to explain that, in addition to the professional, friendly, healthy and positive work environment that caters to the needs of Pafilia’s staff and ensures work satisfaction, employees enjoy a wide array of benefits that extend beyond those commonly offered by other firms, including healthcare and study leave. “We have set up a Pafilia Group Discounts scheme, by which members of staff can take advantage of exclusive offers and discounts on company products and services as well as on other well-known brands. Additionally, we provide our team with learning opportunities to further expand their knowledge and skills, helping them to follow their ambitions and reach their potential” she explains. At Pafilia, the management team is continuously working towards initiating or supporting actions and initiatives that further their employees’ well-being, their sense of belonging as well as enhancing their team spirit. “We work

102 | GOLD | The Business Magazine of Cyprus

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extensively on instituting a sense of pride in the company among our employees both for the unique and innovative projects we deliver and for our comprehensive corporate social responsibility programme and charitable work”, Efstathiou says.

Discussing what makes Pafilia stand out as an employer, Efstathiou notes that the company offers its staff and prospective employees a comprehensive package of benefits and advantages that involve not only a competitive salary and rewards but also excellent working conditions and the chance to work alongside some of the most experienced and skilled professionals, thereby benefiting from their expertise and guidance. “Our team is composed of excellent professionals with long experience and expertise in the field. Most importantly, we are delighted by the family-like environment of our offices; all staff members work as a team

or a group of friends and make newcomers welcome. Our most experienced members are more than happy to advise and assist junior employees, guiding them through the work and helping them enhance their understanding and practical skills,” Efstathiou explains and she concludes: “We consider this as the cornerstone of our success and continuous progress, contributing significantly to the planning, development and delivering of projects of high quality”.

BUSINESS CLASS

How often do you travel, whether for business or pleasure?

What is the most st n you exciting destination ork? have visited for work? e?

And for pleasure?

On average, 6-7 times a year, for both business and d pleasure. But on most of the occasions when it’s for business, I try to extend it for some pleasure time.

I think for work it would uld LZ H[ [OL KLÄUP[LS` OH]L [V IL *HUULZ H[ [OL International Advertising Festival. e with For pleasure, I fell in love St. Tropez, the magical Phuket huket in ot least, Thailand and, last but not T` ÄYZ[ HUK VUS` Z\TTLY TLY nd love – the Greek island of Mykonos!

Tell us about your best corporate travel experience.

I may have had a few that I could describe as ‘best’ but the one I will always s rem remember was a business trip to Athens a few months ago, when I managed to make arrangements for a few ‘me-ho ‘me-hours’ to go for wedding dress hunting at the ateliers of various well-know well-known designers. And I said the big “ye “yes to the dress” I will wear at my wedding in September.

Joanna Kasoulidou

The Director at PR Partners can’t choose between London and Rome when it comes to her favourite destination but, with a wedding coming up in September, right now she can’t wait for her honeymoon in an exotic d destination to get away from her busy usyy lifestyle. y What is your favourite international destination and why?

Wha is your What favourite airline, and why?

I think so far the best experience I have had was with Emirates, travelling t to New ew York.

Yo ork. k. It was id deal and a great c ho oice for ideal choice Z\JO H SVUN ÅPNO[ O[

If you could travel anywhere tomorrow, where would you go?

Because I urgently need a holiday as soon as possible, somewhere without an Internet connection, e-mails and phone calls, I would say somewhere far, far, far away in a different timezone, on a beach, PU T` IPRPUP ^P[O T` ÄHUJt VM JV\YZL plus sunscreen protection and cocktails!

So, anywhere would do… Bali, the Caribbean islands, Hawaii, Mexico...

I don’t know! Just let me know when [OL ÅPNO[ SLH]LZ HUK 0 ^PSS TLL[ you at the airport!

What is the he most impressive ssive ve ever hotel you have stayed at and d why?

I am torn between the Burj Al d Grand Hotel Arab Hotel in Dubai and *VU]LU[V VU [OL (THSÄ *VHZ[ ^OPJO Ä *VHZ[ ^OPJO el that was a was an amazing hotel monastery in the 13th century. It has ormed & renobeen completely transformed ]H[LK PU[V H KLS\_L Ä]L Z[HY OV[LS ]L Z[HY OV[LS piration and offering a unique inspiration an amazing view w of the tline famous coastline

I am torn between London and Rome for different reasons. London because it’s is where I studied and where I have many friends and endless things to do – shopping, p g, galleries, pin galle g theatre, etc – and Rome, be eca e ause for me it is one of the most because rom romantic ma m antic destinations for long walks, en njjoy ying wine and great Italian food, enjoying th the he a ama amazing ma vibes of Italian culture, piz izza z pizzas, gelatos, shopping, etc!

How does C Cyprus compa compare to these destinations?

Cyprus is the place I call home. It’s my base! It’s where I belong and couldn’t imagine myself anywhere else.

www.goldnews.com.cy | GOLD | 103

TIME

OFF

104 | GOLD | The Business Magazine of Cyprus

e O p e K n n n u R i

APART FROM HEADING ONE OF THE COUNTRY’S LARGEST COMMUNICATIONS AGENCIES IN HIS CAPACITY AS CEO OF ACTION GLOBAL COMMUNICATIONS, CHRIS CHRISTODOULOU IS ALSO AN AVID SPORTS LOVER WITH A TRUE PASSION FOR RUNNING. WHAT BEGAN AS A HOBBY DURING HIS SCHOOL YEARS STILL PLAYS A BIG PART OF HIS LIFE AS HE ALWAYS FINDS TIME WITHIN HIS BUSY SCHEDULE TO PARTICIPATE IN MARATHONS OR GO FOR RUNNING IN HIS TWO FAVOURITE PLACES: NICOSIA’S LINEAR PARK AND THE ATHALASSA NATIONAL PARK.

By Artemis Constantinidou | Photos by Christos Tsekouras

C

hris Christodoulou is grateful to have found a hobby early on that acts as a getaway from everything. Explaining how his love of running first came into his life, he tells GOLD, “I’ve been running since I was at school and I used to compete in the 3,000m race. I

g n

can’t say I was ever very good but I seemed to have a knack for long distance!” That said, he stopped exercising when his twin boys and his daughter were born, a break that lasted about six years.

He clearly enjoys participating in running events as he has taken part in one full marathon, competed in three half marathons and several 10,000m and 5,000m races, all of which require hard training. “The full marathon involves approximately four months training, unless you take part in a couple a year, in which case you would probably never stop training!” he admits.

“Personally,” Christodoulou reveals, “I run on average,

about 30km a week. Usually three times a week – I do a tempo run, an interval and a long run. I work with my coach, George Loukaides from Dro.Me.A racing, who prepares a weekly programme for me based on my competencies.”

This has helped him achieve impressive times in different running events, including the Athens Marathon (4 hours and 18 minutes), 21km in Limassol (1 hour and 50 minutes), 10km (48 minutes) and 5km (25 minutes) in Athalassa Park.

According to Christodoulou, however, winning is not the ultimate goal. “This is going to sound so clichéd but it’s really not about winning, it’s

www.goldnews.com.cy | GOLD | 105

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OFF

RUNNING IS A GETAWAY FROM EVERYTHING; IT’S JUST ME, MY THOUGHTS, AND THE PATH I’M RUNNING ON about participating,” he says. “Every race is different and sometimes you just may not feel up to it on the day.”

Revealing what he loves most about running, he states, “You definitely want to test yourself and see how far or fast you can go, but at the end of the day, for me running is a getaway from everything; it’s just me, my thoughts, and the path I’m running on.”

Asked whether he normally participates in these sporting events alone or with friends, he explains that it all depends, as running fits around his schedule but sometimes does not fit around the schedule of others.

“Running is probably one of the biggest social gatherings that exist; where else would you get 50,000 to 100,000 participants in one place? You often start off alone and then end up with

a group of people that you gather along the way. It’s funny,” he says, “but when

106 | GOLD | The Business Magazine of Cyprus

you attend different races, you often bump into the same people that you’ve run

alongside at previous events, as you have a similar pace. It really is incredible how many people you meet on the way.”

Even though running is an activity he would most definitely recommend to others, it was never his dream to become a professional athlete.

“My godfather once said to me: ‘Don’t make your hobby your profession.’ I really do think he was right about that.

My friends and colleagues, on the other hand, think I am crazy for getting up at 5am to run when I could be spending an extra hour in bed,” he laughs. “A friend once even said that I should stop running as ‘more mileage means less value’!”

Besides running, Chris Christodoulou has always enjoyed different sports and still has an endless list of outdoor activities he wishes he had the time to practice, such as skiing, cycling and swimming. “Up until today,” he concludes, “I am restless with my hobbies; I am keen to try a triathlon next, I’ve never done one of those!”

Lunc Lunch with CHRISTIS CHRISTOFOROU

THE CEO OF DELOITTE IN CYPRUS IS PASSIONATE ABOUT TWO THINGS: ONE IS HIS PROFESSION AND ALL ISSUES RELATED TO THE LOCAL AND GLOBAL ECONOMY. THE OTHER IS FOOTBALL. AS A LONG-TIME SUPPORTER OF MANCHESTER CITY, HE CAN TALK ABOUT THE GAME FOR HOURS. OVER LUNCH IN NICOSIA, WE DISCUSSED BOTH SUBJECTS BEFORE TOUCHING ON THE DELICATE ISSUE OF AGE AND RETIREMENT.

Gold

By John Vickers

A OMANTIC GIORNO R des St. TUTTO IL ri a ras Pallik 13, Evago Nicosia a k Ly vitos,

T

108 | GOLD | The Business Magazine of Cyprus

he first time I met Christis Christoforou was exactly five years ago, in March 2012, when GOLD brought the heads of the ‘Big Four’ accounting firms together for a discussion of economic and other matters. He revealed an interesting blend of well-thought-out views and opinions together with a relaxed character and a gentle, witty sense of humour. He has remained seemingly unchanged since I formed that initial impression and I had no doubt that a meal in his company would be highly enjoyable. And so it turned out to be.

He orders a healthy dish of black-eyed beans (louvi), while I go for the rabbit with lemon and, after a brief discussion of the current state of the accounting

S ED BEAN BLACK EY EMON L H IT W RABBIT DESSERT WATER MINERAL O S ESPRES

€8.00 €14.00 €7.00 €2.50 €2.50 €34.00

TOTAL

profession (“Business is good. We’re back to how things were four years ago, as far as the number of new trainees is concerned and I think it's probably the same for all the firms. The only difference is that we have probably become more demanding of them than we were before.”), we inevitably spend most of our lunchtime on his two favourite topics – the political and economic situation and… football. First things first: “As a country, it's fair to say that we've done better than expected since 2013,” he says, but he is quick to add, “We still need to be very careful. The reforms

need to continue and the Government has to show zero tolerance to those who think that the country’s problems have been resolved and we can all go back to our old ways.

We're not out of trouble yet.”

He considers that the island’s banks are “still very vulnerable” and will have to learn to live with their Non-Performing Loans for a long time. He dismisses the much-publicised luxury real estate revival as “an Illusion”, insisting that “we’re just selling passports” and notes that “Households are overleveraged and they now have less income.”

Given his views, I ask whether Deloitte and other major private sector organisations have any input when it comes to government policy. “I think we do have,” he tells me, noting that the Anastasiades government has been “more forthcoming” when it comes to listening to industry views and he makes particular mention of Finance Minister Harris Georgiades: “On many occasions he has created ad hoc committees and brought us together to advise the Government,” he acknowledges but he adds that there is a problem with the pace at which proposals are implemented. “Let's put it this way: The Government is listening but it reacts slowly,” he says. “Things could have been better.”

Turning to issues that may have an effect not only on the island as a whole but on the accounting profession specifically, I ask if he fears that Cyprus may lose its competitive

tax advantage due to the European Commission’s proposal for a Common Consolidated Corporate Tax Base (CCCTB), which would create a single set of rules for how EU corporations calculate their taxes with the potential of consolidating EU taxes. He does not.

“This proposal has been on the table since 2011 but there are so many differences among countries that I fail to see how they will ever agree on it,” he explains. “It doesn't make sense. You don't treat patients with different illnesses by prescribing the same pill! Germany thinks it has the magic pill that can treat everyone but I’m not the only one who doesn’t think it works.”

Christoforou may be upbeat about the likelihood of Cyprus being forced to change its corporate tax rate but he does have a genuine concern about other issues: “The situation in Cyprus remains very fragile, not only from an economic standpoint but politically as well,” he says, referring to what he calls “the Oil & Gas issue” and his concern about

decides to erect a platform close to where the major foreign companies are drilling, who is going to be able to do anything about it?” he asks, noting that it wouldn’t take much to disrupt the summer tourist season.

The mention of oil and gas takes the conversation on a brief detour about the way Larnaca appears to bent on self-destruction by refusing to let the oil companies use the town’s port facilities.

“Don’t people realise that every foreigner these

Larnaca been in a position to refuse foreign investment? By not taking advantage of its opportunities, it has become the least-developed town on the island.”

He cites in contrast what he calls “a striking example of what a single company can do in a town” and his example is Wargaming, which, he says, has changed so many things simply by setting up its headquarters in Nicosia.

I ask the Deloitte Cyprus CEO if he believes that we are any nearer to solving the Cyprus issue than we were the first time we met. “If you had asked me one or two months ago,” he replies, “I would have told you that I was confident that ‘something was cooking,’ especially when Turkey was finally persuaded to come to the negotiating table, but now…?” He pauses to collect his thoughts, and says, “The way things appear to be going, I don't see us resolving the problem.

SUCCESS IS NO LONGER MEASURED

BY THE BOTTOM LINE. IT’S ALL ABOUT THE VALUE OF THE BRAND how Turkey might act if large reserves of natural gas or oil are discovered in the Cypriot Exclusive Economic Zone offshore. “If Turkey

companies employ needs to rent a house, buy a car, use restaurants and shops?” he asks. “Now Limassol will benefit. Since when has

Some of our politicians keep saying that they don't want a solution that is brought from outside but where is it going to come from? If two people

www.goldnews.com.cy | GOLD | 109

| LUNCH WITH GOLD |

have a dispute, isn't it sensible to bring in an arbitrator or go to court and let a third person decide on the solution?

Every time the UN brings a new person here to help us, he is quickly described as an enemy and there are calls to get rid of him. Find me one we've ever been happy with.”

I agree with the last remark but when I suggest that, perhaps, he is being too pessimistic he insists that he’s simply being realistic. “I don't think anyone cares about Cyprus,” he says. “Turkey is a huge country and if the US or Russia or any major power weighs the relative importance to their interests of Cyprus and Turkey, it's obvious what they'll do. It's not about morality. It says something when our media consider as a news item the fact that Cyprus has been mentioned on the news in other countries!”

Tutto Il Giorno Romantica is a remarkably popular restaurant and the first of several diners stopping off to greet my guest is CIPA Chairman Christodoulos Angastiniotis. He is followed a few minutes later by Health Minister George Pamboridis. All three engage in some friendly banter before we turn our attention to football. I know that Christis Christoforou is a long-time supporter of Manchester City – going back several decades, throughout several of which he kept it as a closely guarded secret, for fear of embarrassment!

Today, of course, his team is one of the most successful in the English Premier League.

“We're doing well this season but we should have done better,” he says, adding that, “It's now the end of an era for City, after five years of [coaches] Mancini and Pelegrini. The players that came in during that time are now in their 30s so it's time for a revamp with lots of young players. Pep Guardiola has the recognition to attract the most talented young players. They are not

110 | GOLD | The Business Magazine of Cyprus

joining City only for the money.

Most of them are millionaires already so if it wasn't for him, they would prefer to play for Barcelona or Bayern Munich. Everybody was excited to have Guardiola as coach and we still are because of what we see as the things to come.”

The Premier League many not have all the world’s best players but it certainly has its fair share

and orders an espresso. I give in to my sweet tooth (again) and choose the Tiramisu.

“In the next 20 years, football is going to change enormously,” Christoforou says, warming to his theme. “The Chinese are going to be playing a huge role. In the past, the Beckhams of this world would eventually leave the Premiership and go to the United States. Now,

IN THE NEXT 20 YEARS, FOOTBALL IS GOING TO CHANGE ENORMOUSLY of world-class managers/coaches. Does he believe that Arsene Wenger will stay at Arsenal? “I hope so! For our sake!” he jokes. When I suggest that, as an accountant, he should be impressed by the way Wenger has dealt with his club’s finances, as well as with the team, he tells me that, unfortunately, football has changed a lot over the past 10 years.

Success is no longer measured by the bottom line. It’s all about the value of the brand.

“No-one doubts Wenger's abilities but football is not only about a club’s finances. Young supporters want titles!

They don't want to be second! Arsenal were worth a certain amount 10 years ago and today they are worth more.

But they have no silverware and this affects the brand. How many youngsters support Arsenal globally? Manchester City now have more Facebook followers than Arsenal. Today, no manager would be given the chance that the older ones like Ferguson and Wenger were given because the investment is so great and so is the pressure to succeed. Success raises the profile of the brand.”

It’s time for dessert but my guest is sticking to a decision to avoid sweets

more and more players are going to China and, what’s more, they are going much earlier.

The Premier League cannot raise wages much more – and they can’t match Chinese teams anymore, so they will have to find younger talent much earlier.

In England these days, the best players are foreigners, which is why the national team never succeeds. Local talent will have to be developed from a much earlier age and first team players will gradually become younger and younger.”

The talk of age brings us on to the subject of retirement. At Deloitte, the official retirement age is 65. Christis Christoforou has another eighteen months on his current contract and, he says, he may serve another term as CEO but it’s still early days. I happen to know that he is ten years younger than me but, as we leave the restaurant, he leans over and whispers, “Actually I'm 48 plus VAT and I wish I could claim the VAT back!”Don’t we all!

WHAT’S

ON

THINGS

to do PAPHOS 2017 Paphos finally starts to prove itself worthy of its much-publicised title of European Capital of Culture with the first of several world-class events coming up over the next few months.

CASTLE BERLIN SQUARE, PHILHARMONIC PAPHOS ne of the MONDAY, MAY 1, 12 world’s greatest NOON. orchestras performs its annual European ean Concert, broadcast ast live around the world, from Paphos. Mariss Jansons conducts two works

by Carl Maria von n Weber and Dvorak’s ak’s Symphony No. 88.

Castle

O

Square,

UTE LEMPER Paphos erman muSaturday, May 20, sical and 8.30pm chanson star Ute Lemper sings BrechtWeill songs in a programme entitled One Touch of Venus and More, accompanied by the Cyprus Symphony Orchestra.

G

JAZZ ENCOUNTERS our different concerts in two days for jazz fans at Ibrahim’s Khan, Paphos.

Jazzologia Big Band 13 musicians under the artistic direction of Giorgos Krasidis.

Saturday, April 29, 12 noon

F

112 1 1 | GOLD | The Business Magazine of Cyprus

Sokratis Sinopoulos Quartet Where the ancient sound off the lyre meets jazz.

Saturday, April 29, 8pm

Sunday, April 30, 8pm

Sunday, April 29, 8pm

Karapatakis, Hildenbrand, Spyridakis Jazz meets Mediterranean colours and oriental fragrances featuring Cretan lyre, guitar and fretless bass.

HILTON PARK HOTEL, NICOSIA SUNDAY, APRIL 16, 11PM

STELIOS ROKKOS ate-night Easter show by the popular Greek singer.

L

KONSTANTINOS ARGYROS he Greek singer in an Easter Monday concert.

T

PAVILION, NICOSIA MONDAY, APRIL 17, 7PM

STALO PATSIA & GIORGOS Monday, KARELIS April 17, Two of the participants in this 8.30pm year’s Greek version of “The Voice”. To Steki tis Pareas, Larnaca

Irenaeos Koulouras Trio, Jess Koren & Ofer Ganor Pieces by Mingus, Monk and Coltrane are among the repertoire of these five top musicians.

Sunday, April 30, 9.30pm LYSISTRATA his international production of Aristophanes’ comedy about women who try to stop a war by refusing to have sex with their men features actors from Cyprus, Brazil and Nigeria and musicians from Germany.

House of Aion, Archaeological Park, Paphos Friday, May 12 & Saturday, May 13, 8.30pm

T

GREEK MUSIC GIANNIS KRITIKOS The Cretan singer and lyre player in a one-off performance on Easter Sunday. Lush Beach Bar, Larnaca Sunday, April 16, 9pm

ALOT LIVE, MIKROUTSIKOS AYIA NAPA THIVEOS SATURDAY, POLYCHRONIDI APRIL 22, reek composer Tha10.30PM nos Mikroutsikos with singer Christos Thiveos and singer/actress Marianna Polychronidi in a one-off Cyprus performance.

G

ELENI DIMOU Two shows by the now veteran Greek singer.

VINYLIO WINE ETC, LIMASSOL M SAT A URDAY, SATURDAY, APRIL 29 & A SUNDAY, APRIL 30, A 9.30PM

JJAZZ

Dolce Club Limassol Saturday, May 6, 9pm

N NINO KATAMADZE & INSIGHT eorgian jazz singer Nino Katamadze makes her Cyprus debut with the band Insight.

G

DANCE THE ROYAL BALLET ayne McGregor’s critically acclaimed ballet triptych, Woolf Works, inspired by three of Virginia Woolf’s landmark novels (Mrs Dalloway, RIALTO Orlando and The THEATRE, Waves) with music LIMASSOL WEDNESDAY,

by Max Richter.

APRIL 19, Live from the Roy6.30PM al Opera House, London.

W

THE BOLSHOI BALLET he brand new production by choreographer Yuri Possokhov, adapted from RIALTO Mikhail Lermon- THEATRE, LIMASSOL tov’s celebrated SUNDAY, novel A Hero of MAY 7, Our Time.

7PM

T

PIANO RECITALS

SERGEY MANUKYAN The Russian vocalist, instrumentalist, composer and arranger is well-known for artfully combining jazz elements and popular music.

Rialto Theatre, Limassol Friday, April 21, 8.30pm

THE SHOE FACTORY, NICOSIA FRIDAY, MAY 5, 8.30PM

ROCK MUSIC WOVENHAND sually described as ‘alternative country’, the music of the band from Denver, Colorado, contains elements of country, post-rock, punk, industrial, folkrock and native American music.

Savino Live, Larnaca Sunday, y Mayy 14, 8pm p

FESTIVAL STREET LIFE 2017 For the 10th year, Saripolou and Athinon streets in Limassol’s old town come alive with graffiti artists, w Saripolou musicians and dancand Athinon ers plus over 50 stalls.

Streets, Limassol Last year it attracted Saturday, May 20,000 visitors.

T

THEODORE TZOVANAKIS One of the most talented Greek pianists of his generation in an all-Russian programme.

DER ROSENKAVALIER Renée Fleming, Elina Garanca and Günther Groissböck star in Strauss’s grandest opera, live in HD from the Metropolitan Opera, New York.

U

6, 9am-7pm

ASHLEY WASS he acclaimed British pianist presents a Shakespeare-inspired programme THE SHOE with works by FACTORY, NICOSIA Beethoven, FRIDAY, Liszt, Smetana APRIL 28, 8.30PM and Prokofiev.

RIALTO THEATRE, LIMASSOL, K CINEPLEX NICOSIA, LARNACA & PAPHOS SATURDAY, MAY 13, 7.30PM

FAMILY ENTERTAINMENT THE GODFATHER othing sinister here, despite the name. Two hours of magic and illusions for the whole family.

N

PATTICHION MUNICIPAL THEATRE, LIMASSOL SATURDAY, APRIL 22, 5PM

THEATRE OPERA EUGENE ONEGIN Deborah Warner’s production of Tchaikovsky’s setting of Pushkin’s novel, starring Anna Netrebko, Dmitri Hvorostovsky and Alexey Dolgov, live in HD from the Metropolitan Opera, New w York.

Rialto Theatre, Limassol, K Cineplex Nicosia, Larnaca & Paphos Saturday, April 22, 7.55pm

HEDDA GABLER Ruth Wilson stars in the title role of this new National Theatre production of Ibsen’s masterpiece, directed by Tony Awardwinner Ivo van Hove, live from the Lyttelton Theatre, London.

With Rafe Spall as Brack.

RIALTO THEATRE, LIMASSOL & THOC NEW THEATRE, NICOSIA TUESDAY, APRIL 25, www.goldnews.com.cy ldn dneew dn w wss.co s..co com om.cy | GOLD GO G OL O LD | 1113 13 13 8.30PM

A DAY IN THE LIFE

Christos Michael

A Although I get up at 6 o’clock every morning, I rarely arely go to bed before midnight – I may be out to dinner with clients, working before bed or just spending time with the family mily – so it’s good that I don’t need too much sleep. I take my three sons to school at 7.15 and then go straight to the office. I find that it’s easier to concentrate and have a clear mind at that time so I try to get some of the difficult work out of the way before dealing with client issues.

When I was younger, my dream was to become an architect but when I was due to start my studies in Greece, the construction industry was going through a bad period and I was advised that the future of Cyprus lay in Financial Services. I listened and switched to Accountancy, which I studied at the University of Glasgow, and I soon realised that the subject provided a good basis for anyone wishing to become a successful business-

The Managing Director of First Names Group in Cyprus on how he reached his current position, what LI IRNS]W EFSYX XLI ÁHYGMEV] WIGXSV [LMGL WMRKIV LI sees in concert every year and how he still makes use of his innate talent for architectural drawing.

man m or a good financial fi advisor.

I later qualified as a a Chartered Certified C Accountant and, A after a working with w a number of major audit firms, m I became a partner in Deloitte. When the th firm was required to separate q off o its fiduciary business in 2005, b it was taken over by b one off our ex-partners and I eventually decided to join him. Three years later, we were acquired by IFG and in 2012 a leveraged management buyout meant that a new name was required. The result was First Names, reflecting the company’s people, values and relationships.

What I like about the business is precisely that interaction and relationship with clients. I have to admit that the sector is currently facing numerous new and quite difficult challenges, including the disproportionate amount of time spent on regulation and compliance. My expectation is that it will shrink significantly but, although there will be fewer clients, they will be of a higher calibre and will demand significantly higher skills from sophisticated service

providers that have invested heavily in people and technology.

Most days I leave the office at 7pm and we all have dinner together – my wife is also an accountant and works until quite late but fortunately for the rest of us she enjoys cooking! I often wish we could spend more time with our sons but with the schedules we all have it’s almost impossible. I don’t have much time for reading but I always make a point of doing so during the summer holidays. Last year I read Eagles Die Free, an excellent historical novel by the Greek writer George Polyrakis.

We try to have one long holiday with the children every year, usually in a green, cool place in Central or Southern Europe.

I like Greek music, especially from the 70s and 80s and my all-time favourite singer is Yiannis Parios, whose career I have followed from the very beginning. We still go to Greece at least once a year to see him perform. I rarely go to the cinema these days and the last film I saw was Spotlight a couple of years ago but I still have vivid memories of watching Sylvester Stallone in the Rambo and Rocky movies, also in the 70s and 80s.

I think I have achieved most of my professional ambitions by now. I would like to keep the

company in a leading position, to enable my fellow I still see him directors to sing every year grow and make sure that all our people have a nice work environment in which to meet their /DVW VXPPHU·V personal and best read professional objectives.

My children are not especially interested in taking up I enjoyed this my profeson the big screen sion – this generation is more fascinated by technology and not so keen on the concept of commitment and long hours! They want excitement. Our eldest son intends to study engineering and the second one may also be heading in that direction.

I still design and draw.

When we renovated the house recently, I presented the architect with a complete set of sketches of how we wanted it to be so I can still use my old talent even if I didn’t turn it into a profession. Maybe I’ve got the best of both worlds!”

I HAVE TO ADMIT THAT THE SECTOR IS CURRENTLY

FACING NUMEROUS NEW AND QUITE DIFFICULT CHALLENGES 114 | GOLD | The Business Magazine of Cyprus

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