The extraordinary circumstances that shaped the recent years have outlined an environment of ongoing uncertainty. Within this volatile global landscape, Cyprus is not immune to external pressures and shifting dynamics, many of which pose challenges rather than opportunities. Despite these complex circumstances, the Cypriot banking sector has doubled down on efforts to safeguard and promote its credibility abroad, while reinforcing its resilience at home. Extrovert and consistent communication once again emerged as a cornerstone of this effort, ensuring that the sector’s message is clearly conveyed to policymakers and lawmakers, the economic and business community, Media and society at large.
Discussions regarding Extraordinary Tax on Banks
Throughout most of 2024, public dialogue has been heavily influenced by the proposal for an extraordinary tax on banks, fuelled by the recent economic results of the local banks that were positively affected by the European Central Bank’s increases in interest rates. Effective communication was essential in providing context, presenting data, and explaining the potential consequences of such taxation, not only for banks, but for the broader economy as well.
The industry’s approach focused on transparency: public interventions, media statements and direct engagement with stakeholders were undertaken to highlight the banking sector’s contribution to the economy, its tax footprint, and the long-term implications of policy decisions.
Interest Rates and ECB Policy: A Complex but Crucial Explanation
One of the more technical yet vital topics throughout the last couple of years, was the relationship between loans, interest rates and the European Central Bank’s monetary policy. Public understanding of interest rate changes, particularly when linked to household loans, is limited and this gap can lead to frustration and confusion.
Efforts were made to clarify how mortgage rates are influenced by different benchmarks, such as the ECB base rate, Euribor, and each bank’s own base rate. By explaining the role of monetary policy in managing inflation and economic stability and how this trickles down to lending conditions, the banking sector helped bridge a knowledge gap. Informed citizens are better able to understand their financial obligations and to plan accordingly, especially in a time of increased rate volatility.
Banking Education through the Media
Beyond crisis communication, the Association also invested in proactive education. Through a steady presence in traditional and digital media, professionals from the banking sector and more specific from the Association explained practical issues that directly affect consumers. Topics such as opening bank accounts, using digital banking services, understanding transaction processes and recognizing the role of technology in service delivery were demystified.
Informative Campaigns and Timely Content
In a world where digital fraud grows alarmingly, banks are responding with timely and engaging content. During high-retail periods like Christmas, for instance, targeted videos and informative material were released to raise awareness about scams and phishing attempts.
The introduction of Instant Payments in Cyprus also called for clear, accessible explanations. By offering information through visual content and articles, the Association helped consumers embrace innovation while remaining vigilant.
BANKAST: A Platform for Dialogue
For a fourth consecutive year, the Association of Cyprus Banks continued producing the podcast series BANKAST, featuring discussions with professionals from across the financial ecosystem.
This initiative offers a platform for open dialogue on matters ranging from ESG to innovation, financial topics, and regulatory challenges. It allows for in-depth analysis, giving stakeholders and the public access to the insights that shape banking policy and practice. Our BANKAST podcasts are available on our youtube channel https://www.youtube.com/@acbassociationofcyprusbank3382/video and our website https://acb.com.cy/?lang=el .
Joining Forces Against Fraud
One of the most impactful campaigns of the past year was the joint initiative with Mastercard to combat online and phone fraud. The message: “Some messages, emails, and calls must remain unanswered”, was simple and powerful.
By using strong visual elements and broad traditional and social media exposure, the campaign effectively raised awareness of modern fraud tactics and encouraged behavioral change among consumers. Its success lay not only in its creative execution but in the relevance and urgency of the message.
Next steps
The future holds many unknowns, but what is certain is the continued importance of effective and dynamic communication. The Association of Cyprus Banks will remain committed to transparency, education and information provision as the key ingredients for fostering trust and resilience in a rapidly evolving landscape.
