The Digital Banking CEE Summit 2025 in Bucharest revealed a region that is no longer cautiously exploring digital transformation but actively reshaping its banking DNA. Artificial intelligence, digital-first strategies, and the shift to platform-based business models are no longer just buzzwords—they are the new foundation. While the pace of adoption varies quite a lot across Central and Eastern Europe (CEE), one conclusion is universal: banks that fail to embrace this evolution risk losing relevance in a fast-digitizing world. This is particularly pertinent for regional banks that are not affiliated with Western banking groups, which have typically implemented digitization strategies early on with established industry leaders.
AI: From Innovation to Expectation
Artificial intelligence has officially crossed the threshold from experimental to essential. No longer a niche capability, AI has become a competitive necessity. Approximately 30% of banks in the region are already deploying AI tools, and two-thirds of professionals across Europe are open to AI in their workflows. The conversation has shifted from “if” to “how”—specifically, how to deploy AI responsibly, transparently, and in ways that genuinely add value. Still, skepticism remains. Customers are cautious about algorithm-driven personalization, often expressing discomfort with the lack of transparent decision-making.
Internal AI: Quietly Transforming Operations
Romanian banks are offering compelling examples of how AI can be thoughtfully and strategically deployed. One prominent institution shared its approach to AI enablement, which includes the launch of a proprietary AI assistant, and a comprehensive training program designed not only for technical specialists but also for broader staff across the organization. This initiative reflects a growing recognition that successful AI integration depends as much on people and processes as it does on technology. Perhaps more significantly, the bank has invested heavily in document understanding AI, reaching 90% accuracy in processing complex financial documents like invoices. The move from simple recognition to cognitive interpretation reflects a broader industry evolution toward AI systems that understand context—not just content.
International banks are echoing this internal-first philosophy. Citibank’s AI suite, which includes Citi Assist, Citi Stylus, and Citi Squad, is designed to empower employees rather than dazzle customers. This internal-first strategy is apparently becoming increasingly popular since many financial institutions now prioritize boosting staff efficiency and decision-making over flashy front-end AI tools.
Partnerships Powering Change
Banks across the CEE region are also making strategic bets on partnerships to accelerate digital transformation. Subsidiaries of major French banks in Romania and Poland have begun working with regional IT providers to overhaul legacy systems in favor of modular, agile architectures. These collaborations aim to enable faster innovation cycles and tighter alignment between business strategy and tech delivery.
Yet, a word of caution was raised: as many as two-thirds of digital transformation projects in banking fail, largely due to misalignment between technology execution and business goals.
Neobanks Redefine Customer Expectations
The rise of neobanks is impossible to ignore. In 2024 alone, Revolut added nearly 15 million customers, a testament to the growing demand for digital-native, intuitive, and hyper-personalized banking services. Regional challengers are also gaining ground, especially among retail and SME segments.
Unlike their traditional counterparts, neobanks are not burdened by legacy infrastructure. They are built around data, optimized for mobile, and operate with the core belief: “We know you better than your legacy bank does.” Increasingly, that promise rings true.
Bricks & Clicks: Rethinking the Role of the Branch
Despite the momentum behind digital, physical branches are not going extinct—at least not yet. In the Balkans, where customer trust is still closely tied to face-to-face engagement, traditional banks retain an advantage. One Austrian bank, with SME and retail business ambitions in Southeastern Europe, underscored the value of its hybrid model: digital-first operations backed by high-value advisory in branches.
This “bricks & clicks” approach is not about resisting change but redefining the role of branches as strategic advisory hubs. With remote onboarding and digital ID solutions becoming standard, branches may shrink in number but grow in strategic importance.
Payments Infrastructure: The Quiet Revolution
Behind the scenes, the infrastructure of money movement is undergoing a seismic shift. While over 50% of EU transactions remain card-based, the account-to-account (A2A) payments revolution is accelerating. Driven by open finance, API connectivity, and embedded banking, this shift allows fintechs and neobanks to bypass traditional intermediaries altogether.
The implications are enormous. As A2A payments become more common, traditional banks risk being disintermediated—not by other banks, but by invisible platforms offering seamless, integrated financial experiences that consumers might not even recognize as banking.
“You Don’t Need Banks—You Need Banking”
This quote, famously attributed to Bill Gates, became recurring subtext at the summit. The challenge for regional, European and overall global banks is to decouple their services from legacy structures and recast them as embedded, intelligent layers in customers’ daily lives. The winners will not be those with the most branches or the biggest brand presence, but those that deliver value where and when it’s needed.
A Region on the Verge of Reinvention
The summit closed on a note of pragmatic optimism. The technology is there. The capital is there. The customer appetite for digital experiences is stronger than ever. What remains is execution—fast, ethical, and human-centered.
The focus in CEE and Europe as a whole is slowly shifting from regulation to customer experience: banks that embrace openness to adopting technology, agility, and data-driven decision-making will set the pace.
