Paola Papanicolaou: digitalisation drives banking growth in CEE

According to Paola Papanicolaou, banks in Central and Eastern Europe continue to show solid fundamentals and resilient performance.
“Banks in Central and Eastern Europe are demonstrating resilient and high-quality performance, underpinned by dynamic economies with strong growth fundamentals,” she said.

Higher growth potential compared to the Eurozone, combined with timely and decisive monetary policies, has supported robust returns and efficient operating models across the region.

Looking ahead, Paola Papanicolaou stressed that sustainable banking performance in the region is increasingly shaped by structural growth factors rather than interest rates alone.
“Sustainable banking performance in the region is increasingly driven by structural growth factors rather then interest rates alone,” she noted, pointing to digitalisation, innovation and advanced advisory models as key accelerators.

These trends are particularly relevant in societies with young, digitally native populations that are reshaping consumption, saving and investment patterns.

In her remarks, Paola Papanicolaou underlined the transformative role of digitalisation in Central and Eastern Europe.
“Digitalisation in the region has moved well beyond its traditional IT role. It is now a core growth engine,” she said.

Digital transformation allows revenues to scale faster than costs and enables banks to serve younger generations with simple, fast and inclusive digital services, from everyday banking to long-term financial planning. The region’s latecomer advantage has supported rapid adoption, leapfrogging legacy systems and fostering innovation-friendly environments that enhance productivity, entrepreneurship and financial inclusion.

Within this context, Paola Papanicolaou highlighted Intesa Sanpaolo’s positioning in Central and Eastern Europe.
“Intesa Sanpaolo stands out for its ability to combine industrial scale with technological leadership,” she stated, recalling more than 800 innovation projects and over €5 billion invested in technology under the Group’s 2022–2025 Business Plan, at Group level.

According to Paola Papanicolaou, Intesa Sanpaolo’s integrated Wealth Management, Asset Management and Bancassurance model, supported by advanced digital infrastructure and high-trust advisory, is well positioned to address the evolving needs of Central and Eastern European societies, where rising incomes, demographic change and a growing middle class are driving demand for protection, pensions and long-term savings solutions.

In her concluding remarks, Paola Papanicolaou also referred to the Group’s investments in next-generation advisory platforms for SMEs and its comprehensive offering for large corporates and High Net Worth clients, ensuring a consistent standard of excellence across all Central and Eastern European countries.

With a selective presence in Central and Eastern Europe and in the Middle East and Egypt (MENA), the International Banks Division of Intesa Sanpaolo serves 7.5 million customers through 898 branches across 12 countries. Find out more.