The Church of Greece is breaking into fintech with a fully digital lender set to rival neobanks like Revolut and N26.
The move signals a broader transformation within the Church of Greece, seeking new revenue streams amid declining state subsidies and shifting social dynamics.
Its choice of name, Phos Bank, is symbolic, meaning light in Greek, carrying, also, deep spiritual and symbolic significance in Greek culture and Orthodox Christianity, often representing divine illumination, truth, and guidance.
The venture, spearheaded by the Church-owned Financial Innovation Holding S.A., aims to establish a fully digital bank mirroring neobanks like Revolut and N26. The Church of Cyprus and private investors are expected to join the project.
The initiative is led by Archimandrite Nikodimos Pharmakis, director of the Church’s financial affairs, following a proposal by Angelos Philippidis, former chairman of the defunct Hellenic Postbank. The Church is finalizing its business plan for submission to regulatory authorities.
Phos Bank, expected to secure its banking license by year’s end, will offer loans, deposits, and digital financial services. Church officials dismiss concerns about religious institutions entering banking, emphasizing its modern digital focus.
Bank of Greece Governor Yannis Stournaras is said to have signaled cautious approval, welcoming increased competition.
The Church, which previously held shares in the National Bank of Greece, and the Church of Cyprus, which was a major shareholder in the collapsed Laiki Bank, are re-entering the financial sector.
The headquarters of Financial Innovation Holding has been relocated to Athens' central Syntagma area, signaling the project's seriousness. Church insiders say Phos Bank aims to attract the global Greek diaspora.
It remains unclear whether the bank will creep into crypto currency tradings, currently under the spotlight Greece’s financial authorities.