Cyprus’ small banks have become targets for global fintech companies and financial institutions, with potential acquisitions aimed at securing a European banking license. Among them, Ancoria Bank appears to be at the center of renewed interest from major fintech firms with operations inside and outside Cyprus.
While these banks have not taken steps to acquire fintech companies themselves – despite increased profitability from rising interest rates – fintech firms are actively exploring various strategies. These include outright acquisitions, equity participation and shareholding transactions, positioning themselves for potential takeovers.
Limassol-based firm XM has long been rumored to have held a 9.85% stake in Ancoria over the past three to four years. In late 2023, a Kazakhstan-rooted company (not XM) reportedly attempted a takeover of Ancoria. However, the deal stalled due to unfulfilled regulatory requirements. Allegedly, XM then sold its 9.85% stake to other existing Ancoria shareholders to facilitate the transaction.
Nevertheless, XM’s main shareholders acquired shares in Ancoria near the same stake XM previously held, so the ultimate purpose may be to transfer the whole of Ancoria to XM’s major shareholders later.