Local banks investing in IT companies
The upcoming entry of National Bank of Greece into the share capital of information technology Epsilon Net constitutes another strong indication of the momentum of the digital sector.
Talks between the two sides have been ongoing for days, and on Monday the Athens-listed IT company listed on the Stock Exchange. Founder, president and CEO is Yannis Michos made it known that “it is in the final phase of negotiations for a strategic agreement with National Bank,” expecting its completion in the near future.
Kathimerini understands that NBG’s minority stake in Epsilon Net could reach 20%, with the IT company’s capitalization at 325.2 million euros.
Local banks are increasingly resorting to acquiring such assets even if they are not related to their core business.
Synergies and cost savings, market players explain, are the main reason for the expected NBG-Epsilon Net deal. Lenders, after all, are among the first private sector companies to invest in the technological modernization of their operations and services, with digital banking having been a key pillar of their strategy for decades. It is no coincidence that over 22 years ago Alpha Bank acquired 5.79% of Space Hellas, while its percentage increased in 2005 to 18.96% after the completion of the merger with the absorption of Delta Singular by the bank. Today, Alpha’s stake in Space Hellas is 19.33%.
From the time that ATMs were introduced, to the launch of phone banking and e-banking and the implementation of a series of remote service applications, banks have spent significant amounts on their digital transformation. After the outbreak of the pandemic, the complete digitization of services and, above all, absolute protection against cyberattacks, has given banks a comparative advantage.
The success of a technological modernization project is determined, per market professionals, by the speed and scale of its implementation, as well as the reduction of the costs required. Therefore, the upcoming transaction will enable the faster digitalization of National, while Epsilon Net will have the opportunity to promote its services and digital applications to the banking group and its member companies.
