Financial services are undergoing rapid transformation, driven by technological innovation and evolving customer expectations. While fintechs and neobanks have helped accelerate change, traditional banks are now firmly advancing their own transformation agendas making significant investments in technology, data, and customer experience to offer services that are simpler, increasingly more seamless, and personalised.

As the lines between fintech players and neobanks continue to blur, established banks are building on their trusted foundations to combine innovation with scale, security, and deep customer relationships. In this context, the industry is not simply adapting but actively shaping the next phase of financial services.

These views were shared by Kenneth Farrugia, Chief Executive Officer of Bank of Valletta, during a panel discussion titled Reshaping Malta's Financial Services for a New Era at the IFSP Conference 2026. Mr Farrugia highlighted that Maltese banks have already laid strong digital and operational foundations, positioning them well to meet and exceed customer expectations in an increasingly mobile and interconnected world.

"As financial services become more accessible and mobile, customer expectations around speed, convenience and personalisation continue to rise. Banks are not standing still. We are evolving our models, investing in capabilities, and leveraging technology to deliver more intuitive and responsive customer journeys," he said.

Mr Farrugia emphasised that the next phase for the industry is not only about digital transformation, but also about sharpening Malta's strategic positioning in financial services. "We have built a strong platform. The opportunity now is to clearly define what Malta stands for and to deepen our strengths in key sectors, while ensuring that the broader ecosystem continues to support sustainable growth."

He pointed to asset management as one example, noting the wider value it creates across the economy through service providers and family businesses. "Our focus should be on strengthening the ecosystem around sectors where we already have credibility, attracting operators, building expertise, and enabling long-term value creation."

On the role of technology, Mr Farrugia underlined that digital transformation is accelerating across the entire financial services landscape. Banks are deploying digital solutions not only to enhance customer experience but also to improve operational efficiency and service delivery. Reflecting Bank of Valletta's own journey, he said that the Bank has already made meaningful progress in this area.

"We have significantly improved the way we serve complex client segments, including foreign-owned and multi-jurisdictional structures. Through a dedicated business and specialised expertise, we are now able to offer tailored solutions that were not possible a few years ago," he added.

Speaking about Malta's attractiveness as an investment destination, Mr Farrugia stressed the importance of consistency and clarity in the way the country presents itself internationally. He underlined the value of "discovery meetings" in shaping investor perceptions, noting that alignment across industry participants is key.

"When engaging internationally, we must articulate a clear and compelling value proposition. This requires consistency across stakeholders and a shared understanding of Malta's priorities and strengths," he said.

He also encouraged the continued hosting of international financial services conferences in Malta, highlighting their role in strengthening relationships with investors and showcasing the country's evolving capabilities.

Looking ahead, Mr Farrugia emphasised the importance of a triage collaboration between government, regulators, and industry players. "There are strong interdependencies across the ecosystem. By working closely together, we can ensure that the necessary frameworks, infrastructure, and innovation continue to support growth and competitiveness."

He concluded by reinforcing the importance of strategic clarity: "We must be focused on who we are targeting, what value we offer, and how we communicate this effectively both internationally and within our domestic market."

Bank of Valletta is a corporate partner of IFSP. Issued by Bank of Valletta p.l.c., 58, Triq San Zakkarija, Valletta VLT 1130. Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and is licensed to carry out the business of banking in terms of the Banking Act (Cap. 371 of the Laws of Malta).