If the first quarter of this century has taught us anything, it is that resilience and adaptability are key ingredients of success. Euromoney sat down with Thanos F Vlachopoulos, general manager and head of large corporate finance and wholesale products at Piraeus Group, to discuss how the bank chartered a new path focused on innovation and sustainability.
Strategic overhaul
Today you are the leader in the market, but you need to continue investing if you want to be in the same position in two or five years
Piraeus’ story is one of perseverance. Emerging from Greece's prolonged economic crisis, compounded by the global pandemic, the bank’s resilience has been recognised globally. Earlier this year, Euromoney named Piraeus not only the best bank in Greece and the best bank in Greece for corporate responsibility, but also the world’s best bank transformation.
The distinction highlights the bank's strategic overhaul and return to profitability, fuelled by innovative digital solutions, customer-centric services and sustainable practices. Through disciplined management, with CEO Christos Megalou at the helm, the bank successfully reduced its non-performing exposure (NPE) ratio to less than 3.5% in 2023 from 52% in 2017, and is expecting more than €1 billion in net profits in 2025 and 2026.
Investing in technology
Recognising the pivotal role of technology in modern banking, Piraeus has made substantial investments. Piraeus was the first bank in the Greek market to launch a state-of-the-art digital transaction banking platform. The platform includes cash management and invoice management services, virtual accounts, trade payables supply chain solutions, and analytics and forecasting tools. Vlachopoulos recognises the fast-paced nature of transaction banking. “Today you are the leader in the market, but you need to continue investing if you want to be in the same position in two or five years,” he explains.
Tailor-made TBX services
Piraeus is the first Greek bank to offer a trade payables supply chain and virtual accounts solutions in the market. Buyers and importers of products and services can leverage a digital solution for the prepayment (discounting) of domestic and foreign suppliers’ invoices. As part of the broader TBX offering, the invoice management service offers a fully automated process of invoice payment and reconciliation. Virtual accounts are used by clients as a collection tool or to further automate receivables reconciliation. All TBX services are offered to corporates on a tailor-made basis, after analysing the needs and transaction behaviour of the client.
The investments in digital transaction banking focus on two key areas. “Firstly, we work with our teams to understand how to relieve the CFO, the treasurer and the accounting department of a company from the administrative tasks they perform, using our platforms and products,” Vlachopoulos notes. “Secondly, it’s about the data we have and understanding how to use it for the benefit of our customers.”
These efforts enhance efficiency and allow businesses to focus on strategic growth. The proactive use of data analytics enables the bank to anticipate client needs and offer tailored solutions. “Our small and medium-sized clients do not have the time and resources to rethink their operations and constantly look for efficiencies,” Vlachopoulos highlights. “Data allows us to understand the profile of each client, build a tailored solution and be proactive – you go with a proposition to the client; you don’t wait for the client to come to you.”
Piraeus operates in a domestic environment with increasing competition, not only from fintechs but also from traditional local banks, which are becoming more aggressive, offering a wider range of products and services at competitive prices. “Our key strategy is to leverage technology to enhance our efficiency and customer experience,” Vlachopoulos says.
Thinking about positive impact
Sustainability lies at the heart of Piraeus strategy. “If you do not have a positive impact, both on your people and society, or if you harm the planet, you’re not going to have a future,” Vlachopoulos argues. In 2019, Piraeus was the only Greek bank that founded the United Nations Environment Programme Finance Initiative (UNEP FI) Principles for Responsible Banking.
If you do not have a positive impact, both on your people and society, or if you harm the planet, you’re not going to have a future
Piraeus led from the front on sustainable finance, too. “Being the largest underwriter in the Greek corporate market, we led the first sustainability-linked loan transaction in Greece, offering our clients an incentive to commit to ESG targets,” Vlachopoulos says. “Our portfolio exceeds €700 million, with deals signed both by large corporate and SME clients from industries such as energy, construction, metallurgy, packaging, shipping and many others.” The bank plans to integrate ESG criteria into its supply chain finance products, ensuring its offerings align with evolving market demands.
Looking back, Vlachopoulos firmly believes that by prioritising people, technology and sustainability, the bank not only overcame the financial crisis but has strengthened its position as a leader and innovator in the Greek financial sector.
