The rapid spread of digital banks, electronic payments, crypto-assets and new financial technologies is creating significant opportunities for consumers and businesses. At the same time, it is bringing to light new risks related to security, supervision and user protection. These issues were at the centre of a discussion at the Cyprus Forum with the participation of Financial Ombudsman Valentina Georgiadou, Andreas Papadatos, Director General of the Institute of Certified Public Accountants of Cyprus (ICPAC), and Eirena Georgiadou, Vice-President of the Glafcos Clerides Institute.
The speakers agreed that technological progress is transforming the financial landscape at unprecedented speed, making it harder for the regulatory and supervisory framework to adapt. The challenge, it was noted, is to ensure consumer protection without stifling the innovation brought by new technologies and artificial intelligence.
Security and trust as foundations
Valentina Georgiadou stressed that security and trust are the foundations for the sector's growth. As she explained, citizens are more willing to use or invest in new financial services when they know that effective protection mechanisms exist in case something goes wrong. She also pointed out that many consumers struggle to understand which body they should turn to when a dispute or complaint arises.
Particular reference was made to the growing risks of online fraud and cybersecurity incidents. Ms Valentina Georgiadou noted that the ability to make investments and transactions with a single "click" often leads users to overlook critical information: who provides the service, which authority supervises it, and what rights they have if they lose money or face another problem. For this reason, she described financial education as a key tool for prevention.
Blurring the traditional boundaries
For his part, Andreas Papadatos pointed out that technology has begun, in practice, to erase the traditional boundaries between banking, investment and other financial activities. Through a single platform, users can now carry out a wide range of transactions, which makes the supervisory framework harder to understand. He argued that Cyprus needs better coordination between the competent authorities, the closing of possible supervisory gaps, and clearer information for citizens about their rights and obligations.
Supervision as a competitive advantage
Eirena Georgiadou stressed that, despite technological change, the core principles of the financial system remain unchanged: security, transparency and accountability. She also underlined that reliable and effective supervision can become a significant competitive advantage for Cyprus, attracting high-quality international fintech companies that seek clear rules, stability and institutional credibility.
