Megalou (Piraeus): Scale and flexibility “key” for banks

Companies that will manage to combine the strong infrastructure and range with the flexibility and know-how that characterizes regional organizations will be the winners, Piraeus CEO Christos Megalou, said at the Financial Times “Global Banking Summit” international banking conference in London.

The Financial Times Global Banking Summit is one of the most important international conferences in the financial industry, organized annually by the Financial Times in the British capital. It brings together leading executives from banks, regulators, investment institutions and leading financial analysts from around the world, with the aim of examining the most critical challenges and trends in the global banking system. It has established itself as a point of reference for the international banking community and as a place where ideas are presented and strategies are formulated that affect the global economy.

In the CEO panel that he participated in with Alexandra MacMahon, CEO of ING Bank UK, on the topic “Global vs. Regional Banks – Does Scale Still Determine Success?”, it was revealed that the traditional distinction between global and regional banking groups has now weakened. As Megalou emphasized, the real winners will be those who manage to combine the strong infrastructure and range provided by scale with the flexibility and local know-how that characterizes regional organizations. “The key is the combination of scale and flexibility,” he noted.

“Large groups have resources, but often lack local networks, which is why collaboration is essential. Mid-sized banks are the golden mean as they are large enough to innovate, but also flexible enough to respond immediately,” he added.

In response to questions about potential acquisitions and mergers, Megalou also referred to the recent acquisition of Ethniki Insurance by Piraeus Bank. “The chance to acquire the leading insurance company in the domestic market is rare. The agreement with Ethniki Insurance consolidates our leading position and creates the conditions for a substantial transformation of the financial landscape in Greece.”