CHARTING THE GROWTH OF MALTA’S FINANCIAL SECTOR
SPOTLIGHT ON FINANCE IN MALTA
Malta may be one of the world’s smallest countries, but it is also a vibrant financial hub where FinTech start-ups, fund managers, insurance firms, payment providers, and family offices co-exist and thrive side-by-side
Writer: Ed Budds | Project Manager: Alfie Wilson
Located at the heart of the Mediterranean, between Europe and North Africa, Malta has become deeply integrated in the world of finance.
Famous for its 7,000-year history and 300 days of sunshine a year, the island has emerged as one of the most remarkable success stories in the Eurozone.
Malta’s pro-business attitude, state-of-theart infrastructure, and modest costs of doing business have led it to become the go-to country for growth-minded entrepreneurs and multinational companies.
Despite its small size, the nation has made the conscious decision to support a variety of financial activities and specialist segments, including a rich mix of international, regional, and local institutions.
Today, asset management, insurance, banking, private wealth, and FinTech are the dominant forces of the nation’s finance industry.
Moreover, aviation, yachting, maritime services, capital markets, space finance, and sustainable finance are also playing important roles.
This diversity is building a path to prosperity, paving the way for Malta to thrive and promote cross-sector partnerships and cooperation amongst companies operating from within the country.
The nation progressively aligns itself with global standards in the realm of international finance today.
As such, from Malta, financial services companies can now readily access the EU’s massive single market of over 500 million people.
In addition, the island enjoys a vast network of more than 70 double-taxation treaties, covering most of the world’s high-growth markets, facilitating trade and international business.
Malta is also a major transhipment hub, with the Malta Freeport Terminal being one of the most efficient and successful freeport operations in the Mediterranean.
Almost all goods being shipped through the port or re-packaged for onward shipment now do so tax-free.
Meanwhile, moderate operating costs coupled with a highly-qualified population and a desire to support innovative ideas has positioned Malta
as the ideal location for small to medium-sized enterprises (SMEs), regional headquarters, back-office functions, and fast-growing FinTech firms to prosper.
Furthermore, as a finance centre, Malta has also become internationally recognised as a thought leader, championing the introduction of cell company structures, which today are an important element in the captive insurance sector.
Boasting sophisticated ICT infrastructure that is well connected to the international backbone of Europe’s network, high broadband penetration, and a competitive market with the latest technologies, Malta now offers the perfect environment for business.
Another advantageous factor is that friendly relationships exist between the island and its Mediterranean neighbours. Through bilateral agreements between Malta and the EU with third countries, and as a result of Malta’s traditional economic links, the country continues to strengthen its position as a business location and financial centre in the region.
More than just a smart place to invest, Malta is the multifaceted gem of the vibrant Mediterranean. This friendly and welcoming island contains everything needed to strike the perfect balance between business and pleasure. It offers a variety of lifestyle choices that range from urban, cosmopolitan, and luxurious to relaxed and rural.
Boasting shopping, cultural, and leisure activities, all at affordable rates, Malta also provides expatriates with a unique opportunity to live every aspect of life to the full.
Globally, the financial services industry is approaching a new digital frontier, and with a keen eye on the future, Malta has set itself the ambitious target of providing financial firms with a technologically advanced, top-tier regulatory and business environment.
The clear aim is to be a global player in the regulated digital finance and FinTech space.
For now, Malta’s unquenchable thirst and active appetite for innovation will undoubtedly continue to power its growing financial services sector.
INTERVIEW: FINANCEMALTA
Created in 2007, FinanceMalta is the public-private initiative set up to promote Malta as an international financial centre within, as well as outside, the nation. We catch up and learn about all the latest developments with Chairman, George Vella
FinanceMalta brings together and harnesses the resources of both industry and government to ensure Malta maintains a modern and effective legal, regulatory, and fiscal framework in which the financial services and FinTech sectors can continue to grow and prosper.
The organisation arrived on the scene at a critical time for the nation, just as Malta entered the Eurozone. Fast forward to today and the financial services sector is now
a major force in the country’s economy.
Malta possesses numerous significant strengths to offer the industry, such as its highly-qualified, motivated workforce, low-cost environment, and an advantageous tax regime backed up by more than 70 double-taxation agreements.
On top of these benefits, FinanceMalta now offers world-class ICT infrastructure, English as an official language, an enviable climate, and a strategic location.
EME Outlook (EO): Firstly, could you provide us with some insight into your career to date and explain how you became interested in the finance industry?
George Vella, Chairman (GV): It’s been quite a journey from a very young age to where I am now.
I don’t come from a business family but grew up surrounded by a family of professionals. Early on in life, I knew I wanted to take my own unique path into something that no one else in my family wanted to branch out into.
As soon as I started studying the area of finance, it immediately felt like my natural home, and after a lot of hard work, I took on several very interesting roles, notably as Finance Director of a hotel chain, which then transitioned into a central treasury role where I’ve thankfully learned a lot.
During a brief interlude, I spent some time working for a local bank which was an interesting and valuable experience. After that, I was lucky enough to have the opportunity to build a financial advisory practice from scratch which is still thriving today and something I am very proud of.
Three years ago, I was also asked to chair FinanceMalta,
a public-private partnership between the financial services industry and the Government of Malta.
It acts as the extended business development arm of the entire financial services industry, which means my role carries a lot of responsibility - an honour I gladly accepted.
I feel that the country of Malta and the profession I practice has been so kind to me personally and to many of my colleagues – I owe both a huge debt of gratitude.
Simialrly, whenever the country, fellow professionals, or the sector asks for something, I cannot say no.
Now, when I see all the great opportunities coming our way and the incredible transformation that is happening in our respective industries, I remain very enthused by what’s happening.
EO: What is your take on the finance landscape in Malta over the last year? Have you identified any recent trends developing since we last spoke?
GV: At present, we are seeing FinTech really take off, in a comparable way to successes we have previously observed with financial services, gaming, and digital services.
Trusted Across Generations
For over 50 years, Bank of Valletta has been a cornerstone of Malta’s economic landscape, enjoying a strong, sustainable market position as Malta’s leading financial services institution. The Bank provides retail and business clients with a suite of services, offered through a network of branches, business and investment centres, financial well-being centres, 24x7 services and corporate and wealth management arms. Bank of Valletta is an institution trusted across generations, leading by example in sustainability and active in its support to the communities it serves, living up to its promise of being Malta’s Bank of Choice.
Issued by Bank of Valletta p.l.c., 58, Triq San Zakkarija, Il-Belt Valletta VLT 1130. Bank of Valletta p.l.c. is a
BANK OF VALLETTA: A Strategic Transformation Toward Sustainable Growth
or over five decades, the Bank of Valletta Group (BOV) has stood as a pillar of Malta’s financial system, playing a central role in the country’s economic development. Deeply embedded in the fabric of Maltese society, BOV has evolved in step with the islands’ macro and microeconomic shifts, transforming into a modern, forward-looking financial services provider.
With a client base exceeding 360,000 and over 20,000 shareholders, BOV remains committed to its role as Malta’s leading bank. It serves a diverse customer spectrum – from individuals and small businesses to large corporates – whilst maintaining strong ties with communities across
Malta and Gozo.
In an era defined by economic volatility and rapid technological change, BOV continues to demonstrate resilience and agility. Its strategic focus on innovation, prudent governance, and customercentric service has enabled the bank to sustain performance and achieve key milestones outlined in its transformation roadmap.
Enhancing Customer Experience
Customer-centricity is at the heart of BOV’s strategy. The bank prioritises community-focused banking and consistently improves its service quality, as reflected in rising customer satisfaction and net promoter scores. A standout initiative is the launch of
financial well-being centres in Malta and Gozo. These centres offer holistic financial planning services – including credit, investment, and retirement solutions – tailored to each stage of a customer’s financial journey. Offerings range from savings accounts to asset management and stockbroking, along with protection plans covering life, loans, insurance, and pensions.
To meet evolving consumer behaviour, BOV has extended branch hours and is upgrading its entire ATM fleet – 94 units in total – with next-generation machines featuring contactless technology. A branch renovation programme is also underway, enhancing the customer experience across Malta’s largest banking network.
Left: Kenneth Farrugia, CEO, Bank of Valletta Group
For business clients, the bank introduced the BOV SmartPay brand in early 2025. This suite includes SoftPOS, e-commerce solutions, and corporate card services. A new commercial card product and digital platform now offer businesses real-time transaction visibility and greater control over spending, streamlining financial operations.
Accelerating Digital Transformation
Technology is a cornerstone of BOV’s strategic plan. The bank is actively advancing its digital transformation programme to deliver enhanced convenience and financial agility for both personal and business customers. Upgrades to mobile and internet banking are in progress, promising a significant increase in new features. The bank is also reengineering internal processes and deploying digital solutions to boost efficiency and responsiveness.
Growing with the Community, Leading in Sustainability
BOV’s commitment to community well-being is reflected in its robust corporate social responsibility (CSR) programme. The newly launched BOV Foundation drives initiatives across five pillars: supporting vulnerable groups, promoting education, preserving Maltese heritage, advocating ethical conduct, and championing environmental sustainability.
BOV is deeply committed to its environmental, social, and governance (ESG) goals, actively working to reduce its carbon footprint and helping customers transition to more sustainable practices. The bank offers green lending incentives and ESG-aligned investment products, positioning itself as a key partner in Malta’s shift toward a greener economy.
This commitment has earned BOV several prestigious accolades. At the 2024 Malta Business Awards, the bank received the Gold Award for Environmental Innovation for its Rebbiegħa CSR Initiative, which included a collaboration with Nature Trust Malta to protect loggerhead turtles through satellite tracking and outdoor tank facilities. It also secured the Silver Award for Social Impact, recognising its long-standing dedication to community well-being and ethical banking.
On the international stage, BOV was honoured by the World Savings and Retail Banking Institute (WSBI) and the European Savings and Retail Banking Group (ESBG) for its leadership in sustainable finance, its role in promoting
financial inclusion, and community-led initiatives. These awards underscore BOV’s growing influence in shaping responsible banking practices across Europe.
Beyond recognition, BOV continues to champion sustainability through education, product innovation, and operational transformation. Whether by offering interest rate incentives on green loans or expanding its portfolio of ESGfocused investment solutions, the bank remains at the forefront of sustainable finance – helping customers embed ESG principles into their operations and supporting Malta’s transition to a lowcarbon economy.
Strategic Renewal and CustomerCentric Evolution
As BOV advances its strategic journey, it aims to enhance service delivery, streamline operations, embrace new technologies, and elevate the customer experience across all touchpoints. The bank is diversifying its business model by expanding existing services and introducing new ones. Through its partnership with MAPFRE MSV Life, BOV now offers general insurance products and is actively growing its presence in second and third pillar pensions.
BOV remains a steadfast advocate for long-term financial well-being, ensuring regulatory compliance, strengthening cybersecurity, and upholding anti-money laundering and anti-financial crime
standards to protect customers and the institution.
Investing in People
People are BOV’s greatest asset. The bank embraces a people-first philosophy, believing that empowered employees deliver exceptional customer service.
Over the next 12–18 months, BOV will invest heavily in talent development through extensive learning programmes to attract and retain top professionals.
Looking Ahead
As BOV looks to the future, it is focused on building on its transformation success. Strategic initiatives will continue to enhance service offerings, optimise operations, and expand market reach. The bank’s commitment to innovation, sustainability, and community engagement remains unwavering. International rating agencies have recognised BOV’s progress, affirming its transformation journey.
BOV will also continue to reward shareholder loyalty and increase shareholder value through targeted initiatives. Ultimately, BOV aims to remain Malta’s bank of choice for generations to come.
Phone: +356 2131 2020
Email: customercare@bov.com
Website: www.bov.com
Solid Partners, Flexible Solutions.
At the core of Malta’s economic success, the nation is applying the same ingredients to several very similar complementary service industries and, time and again, it’s thankfully very clear that the financial proposition the island offers remains highly attractive.
Meanwhile, one big trend developing in the last year is the huge success we have witnessed with the EU’s new Markets in Crypto-Assets (MiCA) regulation.
This new directive has led to a significant number of applications being submitted to the Malta Financial Services Authority (MFSA), the local regulator.
As such, we are currently witnessing a number of both local and foreign entities choosing Malta as their natural home, who we embrace with open arms.
If you look at our economy compared to other more traditional examples from the rest of Europe, we are very service-based. This dependence accounts for 87 percent of our GDP, and we also have a surplus on these services, meaning roughly 30 percent of what we do is exported to other countries.
Additionally, when you’re exporting, you are earning foreign cash, which is always extremely important for economic policy.
“I AM MOST PROUD OF OUR PEOPLE – IT IS ONLY A VERY SMALL TEAM, BUT THEY ALWAYS GO THE EXTRA MILE OR MORE EVERY SINGLE YEAR WITHOUT FAIL”
– GEORGE VELLA, CHAIRMAN, FINANCEMALTA
Another big trend that we are seeing – and which will be occupying much of our time and energy in the coming years – is the digital transformation of traditional businesses, such as law and accountancy firms, and any other professional services within the financial services realm.
It has been predicted that we won’t even recognise how these services will be offered in the future and we’re slowly but surely seeing that many of the operators are smelling the vast opportunities available and doing what needs to be done to achieve this game-changing digital transformation.
MALTA’S FINANCIAL ADVANTAGES
Geographical location
Malta is favourably located within three hours’ direct flight time from other European financial centres. Moreover, the Malta Freeport Terminal is now a major regional hub. The island is also part of the Schengen Area, a zone of 29 European countries that have abolished internal border controls, allowing for free movement between them. Additionally, Maltese Standard Time is one hour ahead of Greenwich Mean Time and six hours ahead of Eastern Standard Time, so business runs smoothly within the international community.
Diversified economy
Historically, the tourism sector contributed to around 25 percent of the island’s GDP. However, a variety of service businesses have joined the traditional economic generator which now accounts for 75 percent of Malta’s GDP. As such, industry accounts for 23 percent and agriculture makes up the remaining two percent of what is now a diversified economy.
Accessible regulator
Respected and forward-thinking, Malta’s financial regulator is accessible with risk-based supervision.
Technology and services
Key to Malta’s success as the most successful knowledge-based economy in the Mediterranean region has been the growth of service-focused businesses in fields such as ICT and the booming Maltese financial services industry. Expansion of the FinTech industry, together with life sciences and education, also continues to pave the way for a prosperous future.
Simplicity through Innovation
Through innovative solutions, Finance Incorporated Limited streamlines and simplifies a full range of financial services under one roof, making your financial management accessible, adaptive, and reliable. Cenk Kahraman, CEO, delves into the unparalleled services the company provides, making it an industry stalwart ripe with expertise.
Over the course of your career, how have you seen Malta’s finance landscape evolve? What recent opportunities or challenges have you encountered in the region?
It’s been a fascinating evolution. When I started, the landscape was quite different. The real gamechanger was Malta’s entry into the EU, which gave us a credible regulatory framework and access to the European market. That foundation allowed us to become a hub for tech-driven finance, like payment companies and Fintechs. More recently, we’ve seen Malta take a leading role as a pioneer in crypto regulations, which really put the country on the map for innovation.
As for recent opportunities and challenges, they are two sides of the same coin. The opportunity is to keep building on that innovative reputation. The challenges, however, are becoming more pronounced.
• First, talent. Finding and keeping the right people, especially with specialised tech and compliance skills, is a major struggle. The sector grew faster than the local talent pool could.
• Second, competition. We’re not the only option. Other jurisdictions are competing fiercely for the same business, so we can’t afford to be complacent.
• And third, infrastructure. There’s a critical need for better banking and payment solutions, specifically for non-traditional financial firms. It’s a real bottleneck that’s undermining the potential of our Fintech and crypto sectors.
Could you provide a brief overview of Finance Incorporated Limited’s (FIL) main products and
services, and how you are streamlining and simplifying a full range of financial services through innovative solutions?
At FIL, we cater to a wide range of clients – from individuals and small businesses all the way up to large corporations and other financial institutions. Our main products are the tools they need for their daily financial activities: we offer EUR-based accounts, debit cards, and, for our business clients, provide POS systems, e-commerce platforms, and other payment solutions.
The way we simplify and streamline all of this is by focusing our innovation on the back-end. Think of it like a car; you see a simple dashboard and steering wheel, but underneath there’s a complex engine making it all work. Our innovation is that engine. We connect different specialised platforms behind the scenes.
This approach gives us – and our clients – three main benefits. It creates significant speed, makes our services very cost-effective, and gives us the power to handle a very high volume of transactions without breaking a sweat. So, for the user, it’s a simple, fast, and efficient service, all powered by our integrated back-end.
What does security mean to FIL? How do you ensure the security of all customers’ transactions?
Security is everything to us at FIL. We consider protecting our clients’ data and their accounts to be our number one job.
We take a ‘security-first’ approach to everything we build. From day one of any project, we’re thinking
about cybersecurity. It’s built in from the ground up, not bolted on at the end. To make sure we’re properly secured, we use multiple layers of security tools – one layer protecting the next. We also have independent experts test our systems every year to try and find any weaknesses, which helps keep us sharp.
For the transactions themselves, security is absolute. Every transaction is wrapped in industry-standard encryption. Think of it like sending a message in a locked, unreadable box. This ensures that from the moment a client initiates a transaction to the moment it’s completed, their information is kept completely private and secure.
Can you tell us more about your belief that straightforward financial services are a fundamental human right, and how this informs your mission to offer financial solutions for everyone?
Our belief is based on a simple reality: the world has changed. Think about how much less you use cash today compared to a few years ago. Digital payments are now the standard for everything, and the smartphone in your pocket is the key to it all. It enables and fuels this entire trend.
Given that, we see access to a digital account as a basic necessity, not a luxury. You need it to safely pay for things, receive your salary, and just manage your life. In today’s world, being without a digital account is like being without an internet connection – you’re effectively cut off from society.
This reality directly informs our purpose at FIL. One of our goals is to provide the essential tools that allow people to participate confidently in the digital
economy. That’s why we are committed to developing solutions that are designed to be simple, secure, and inclusive.
Looking ahead, what are your key priorities, goals, and targets for the coming year, and are you optimistic for the future of Malta’s finance industry?
For the coming year at FIL, our priorities are clear. First, we’re doubling down on our home market in Malta to increase our presence here. At the same time, we’re actively planning our expansion into several other EU countries. To broaden our horizons, we’re looking to partner with firms outside the EU to give us a more global reach. It’s about strengthening our base, expanding in the region, and then connecting globally.
As for Malta’s finance industry as a whole, I’m very optimistic. Our leadership in areas like Fintech and crypto gives us a great head start. We’re wellpositioned to ride those waves. However, to really succeed in the long term, we cannot be complacent. There are a few things we need to get right. We need better connections with other financial hubs, we have to make it easier and more attractive for companies to do M&A deals or list on the exchange here to attract bigger investors, and critically, we need to solve the talent shortage. If we can tackle those points, Malta’s future in finance looks very bright.
Moving forwards, we will also do our best to continue increasing our attractiveness for wealthy individuals who decide to allow us to administer their finances effectively.
EO: What are the organisation’s key differentiators and most valuable qualities?
GV: A key differentiator, and one which has been widely recognised across the sector, is the versatility afforded by the local legislative framework to those who use Malta as a logistical and jurisdictional base.
Moreover, our jurisdiction and legislative framework is second to none. There are historic reasons for this as, until 1964, Malta had always been occupied by a variety of very influential European forces.
Over the years, this cultural mix left an imprint on the nation’s legal system, significant parts of which can still be seen today in the form of principles bestowed into Malta’s legal framework from both French and English rule.
Elsewhere, the Malta Ship Registry is used for ship finance through mortgages and other security interests, which are recorded in the registry to provide legal certainty for financiers.
Our legal framework, modelled on British maritime traditions, allows for the registration of mortgages over
“WHEN A PERSON DECIDES TO VISIT FOR BUSINESS, LEISURE, OR TO MAKE MALTA THEIR SECOND OR NEW NATURAL HOME, THEY WILL QUICKLY DISCOVER WE ARE A VERY SMALL COSMOPOLITAN ISLAND WITH LOTS OF FUN TO BE HAD”
– GEORGE VELLA, CHAIRMAN, FINANCEMALTA
vessels, creating a special charge on a ship that can be enforced even if the vessel is under charter.
The effectiveness of our courts of law – coupled with the fact we are English-speaking, a member of the EU, and possess a very nice climate – combine to make us a burgeoning proposition.
When a person decides to visit for business, leisure, or to make Malta their second or new natural home, they will quickly discover we are a very small cosmopolitan island with lots of fun to be had.
I believe we possess an attractive overall package for anyone that decides to visit.
EO: Could you tell us about the upcoming edition of the FinanceMalta Annual Conference later this year and the importance this holds?
GV: The flagship FinanceMalta Annual Conference reviews sector performance, regulatory updates, and growth priorities across banking, funds, FinTech, and insurance. It is the must-attend forum for anyone shaping Malta’s financial-services agenda.
Our 18th edition of the conference, held between 19th and 20th November, has secured record support from the industry, with 45 firms confirmed as sponsors for the sector’s flagship meeting point, reflecting the increasingly strong confidence in Malta’s financial services ecosystem. This investment ensures that the conference is not
only entirely industry-funded but also built by and for the sector, making it a truly collaborative platform.
We are really excited for the conference to map out where we are in terms of progress with several significant and exciting future projects, one of which includes the digital transformation of tax returns and collection of taxes in Malta, collating all data into one unified system.
EO: Finally, what element of the organisation are you most proud of?
GV: I am most proud of our people – it is only a very small team, but they always go the extra mile or more every single year without fail.
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“AT PRESENT, WE ARE SEEING FINTECH REALLY TAKE OFF, IN A COMPARABLE WAY TO SUCCESSES WE HAVE PREVIOUSLY OBSERVED WITH FINANCIAL SERVICES, GAMING, AND DIGITAL SERVICES”
– GEORGE VELLA, CHAIRMAN, FINANCEMALTA
With only six spokespeople, we have managed to be present at over 50 events internationally and have also organised several events ourselves. Right now, our membership base is growing significantly because of the value being brought to the table.
We’ve managed to increase our income, not only from our members and private entities, but also from government, meaning we have doubled our budget.
I believe this is all an indication that what we’re doing is creating significant value for our members and the jurisdiction. Therefore, it fills us with even more responsibility to deliver more and continue our forwards momentum.
We try to stay in contact with both the founding bodies of FinanceMalta and our stakeholders, which is always a balancing act because you’re trying to negotiate and serve everyone’s interest.
Yet, in some shape or form, we seem to be doing that because we are seeing our membership and the number of people attending our conferences grow alongside the wider financial services sector.
Last year, Malta embarked on a revision of its entire strategy for the country and, based on the successes that we’ve seen so far, it looks like this has convinced the strategy-setters to ask for more from our financial services sector.
This strategy is based on the assumption that we will continue to grow at an even greater pace, which marks a huge vote of confidence – we will do our very best to fulfil these ambitious targets.
Tel: +356 21 224 525 info@financemalta.org www.financemalta.org
