Corneliu Cojocaru,
Senior PR & Communication Consultant
Romania’s post-pandemic financial industry is a living structure undergoing dynamic evolution under the pressure of the IT revolution and changing consumer behavior and preferences, particularly among those aged 15–45. Its maincharacteristics are accelerated digitalization, consolidation of the banking sector, and a strong focus on sustainable finance (ESG) and bonds. The banking system continues to be the central pillar of the financial sector (with 29 active banks, including Revolut), while non-banking financial institutions (NBFIs) focused on lending—more than 200 companies currently operating—maintain their relevance through technology and a broad financing scope. The structure of the financial system is further complemented by 32 credit cooperatives, 2,434 mutual aid associations, more than 3,800 pawnshops, electronic money institutions, payment institutions, and others.
Also included, of course, are the state entities responsible for managing financial flows and specific financial policies, such as the National Agency for Fiscal Administration (ANAF), the State Treasury, guarantee funds, and payment agencies.
Resilience and Consolidation – A Brief History
The evolution of Romania’s banking system during the 2020–2026 period has been defined by remarkable resilience in the face of global, continental, and national crises, aggressive consolidation through mergers and acquisitions, and accelerated digitalization. The banking sector rapidly progressed from the severe uncertainty caused by the COVID-19 pandemic in 2020 to achieving record profits of RON 16 billion in 2025, while the first half of 2026 has been marked by entry into a relatively advanced stage of maturity.
2020–2022: Pandemic and Inflationary Shocks
The beginning of the third decade of the third millennium once again tested the strength of Romanian banking capital, following the financial crisis of 2008–2010.
- The Pandemic (2020): The National Bank of Romania (NBR) implemented quantitative easing measures, while several banks introduced loan repayment moratoria to protect their customers. Digitalization became the top priority, driven by restrictions on human During the pandemic, inflation remained within a reasonable range, although it doubled in 2021 (5.1%) compared to 2020 (2.6%). Lending rates declined in 2020, with the ROBOR index reaching historic lows due to the pandemic and NBR’s monetary policy rate cuts, which injected liquidity into the economy to stimulate activity. Toward the end of 2021, however, interest rates began to rise slightly amid the first signs of inflationary pressure.
- The War in Ukraine and Inflation (2022): The outbreak of the regional conflict on February 24, 2022, brought increasing market volatility and a surge in prices. Average inflation climbed to 8%, driven by substantial increases in energy, gas, and fuel prices. Interest rates rose rapidly. The NBR increased its policy rate, and ROBOR exceeded 8.20% in October 2022, reaching a historic peak, with the IRCC benchmark subsequently following the same trend.
- 2023–2025: The Wave of Major Mergers and Record Profits
During this period, inflation showed a declining trend in 2023 (10.4%), which continued in 2024 (5.6%). However, 2025 was marked by renewed price acceleration, with annual inflation reaching 9.7% in December compared to December 2024.
Excess liquidity in the banking system forced commercial banks to lower interbank market quotations. ROBOR gradually declined throughout 2023 as inflation eased, maintaining its downward trend in 2024 in direct correlation with NBR monetary policy decisions.
In 2025, the indicator stabilized within the 5.5%–6.2% range, reflecting an economy in contraction amid significant uncertainty and fiscal risks.
The so-called “austerity measures” introduced in 2025— including the freezing of pensions and public-sector salaries, widespread tax increases, higher energy prices, and similar measures—triggered a major shift in the economic behavior of both households and businesses, reflected in a sharp decline in consumption and GDP.
In recent years, the banking system has undergone a radical reconfiguration of its hierarchy, marked by the disappearance of historic brands and increased capital concentration.
- Massive Consolidation: Romania experienced an intense process of mergers and As a result, the market became concentrated around just seven systemic banks, which held 80.5% of the Romanian
banking sector’s total assets as of September 2025 and provided the majority of financial services to the real economy: 80% of outstanding loans, approximately 79% of household and corporate deposits, and more than 60% of payment transactions. The Banca Transilvania Group strengthened its position as the undisputed market leader by acquiring OTP Bank Romania and BRD Pensii assets. At the same time, the merger between UniCredit Bank and Alpha Bank—the first foreign bank to enter Romania after 1989—reshaped the systemic ranking. The acquisition of First Bank by Intesa Sanpaolo Bank further contributed to this transformation.
- The Financial Peak of 2025: Benefiting from still- elevated interest rates and robust lending activity, Romanian banks achieved a record aggregate profit of RON 16 billion in 2025, despite the introduction of a turnover tax (2% in the first half of the year and 4% in the second half). This compares with RON 14 billion in 2024. Total banking system assets reached RON 6 billion by the end of 2025.
2026: Slower Growth and the Asset Tax
The current year has brought a shift in paradigm and a moderation of financial optimism.
- Profitability Correction: Initial data for 2026 indicate a visible decline in sector Return on equity (ROE) fell to 14.1% in the first quarter of 2026, compared with 18.2% during the same period in 2025, representing the lowest profitability level in the past four years.
- Causes of the Slowdown: Slower overall economic growth and the implementation of special turnover taxes on banks have placed pressure on balance sheets. Non-government lending growth slowed significantly, increasing by only 1% in nominal terms in March 2026 (compared with 9.2% in March 2025), which represents a contraction in real terms.
- The Digital Landscape: Physical branches continue to close at a sustained pace, while customer migration toward mobile banking applications has become nearly universal for basic banking operations in urban
Instead of a Conclusion
Between 2020 and 2026, Romania’s banking system underwent a profound transformation, evolving from a relatively fragmented and reactive sector into a mature industry characterized by greater concentration, strong capitalization (with solvency consistently exceeding 20%), and structural resilience capable of adapting to continuously changing national, European, and global macroeconomic realities.
The Digitalization Revolution: The Rise of Online Applications, Branch Closures, and the Fintech Impact
Between 2020 and 2026, Romania’s banking system underwent an accelerated digital transformation, initially driven by the pandemic and subsequently supported by the need to reduce costs and by changing consumer and business behavior, both of which increasingly favor digital interaction.
Romanian banks have effectively evolved from emergency solutions deployed during the pandemic to sophisticated digital ecosystems resembling financial supermarkets, offering fully online services enhanced by Artificial Intelligence (AI). Recent analyses suggest that institutions such as BCR, Banca Transilvania, and ING Bank are at the forefront of digital technology, integrating complex infrastructures fully compliant with European regulations.
In 2020, mobile banking applications were used primarily for balance inquiries and simple transfers.
Today, most digital banking applications function as fully- fledged virtual branches.
- Near-Complete Online Access: Customers can now access personal loans, refinancing products, account opening and closure services, debit and credit card applications, insurance products, investment services, and more directly through banking applications, without visiting a branch. Income verification is performed instantly through ANAF database Participation in the instant payments system has accelerated transfers, while contactless digital wallets such as Apple Pay and Google Pay, along with phone-number-based payment technology, have become standard elements of everyday life.
- Digitalization of State-Owned Banks: State-owned banks have also developed proprietary digital platforms and CEC Bank, Romania’s oldest state- owned bank (established in 1864 under legislation introduced by Alexandru Ioan Cuza), currently operates six major digital platforms and applications. The bank has recently launched five Digital Branches and introduced a new banking interaction model combining fast access to services through self-service equipment with remote human assistance for more complex transactions. Exim Banca Românească offers customers a comprehensive digital platform (although not online lending), a dedicated internet payments application featuring biometric authentication, and an online desktop platform.
- Automation of Customer Interactions: Virtual assistants and electronic bots now dominate customer interactions, handling nearly three-quarters of all inquiries and
- Closure of Physical Branches: Process automation and banking mergers have led to extensive restructuring of branch networks. Between 2024 and 2025 alone, commercial banks closed more than 135 physical branches, a trend that continued during the first half of Most remaining branches have been transformed into advisory centers focused on complex products such as mortgages and business consulting. Traditional teller counters are being replaced by ATMs and multifunctional machines (MFMs) that allow customers to perform a wide range of account operations 24/7.
- Transformation Under Fintech Pressure: Traditional banks initially competed with technology-driven challengers such as Revolut but have increasingly adopted their business models or launched their own A notable example is Salt Bank, launched in April 2024 as Romania’s first fully digital bank following Banca Transilvania’s acquisition of Idea Bank. At the same time, developments such as Raiffeisen Digital Bank’s withdrawal from Romania in spring 2025, as it shifted focus to Poland, highlighted the intensity and competitiveness of the local digital banking market.
Brief Timeline
2020–2021: The Pandemic and Forced Digitalization
Mobility restrictions forced banks to rapidly eliminate physical interactions. Digital customer journeys were introduced for account opening, balance verification, payments, and simple transfers. Online transaction fees were removed to encourage electronic payments. The COVID-19 pandemic also compelled banks to temporarily or permanently close numerous teller offices.
2022–2023: Expansion of Mobile Banking Applications
Mobile banking applications became an integral part of everyday life. Banks integrated fast personal loans, insurance products, investments, road tax purchases, and other services into mobile platforms. Instant online payments, processed through Transfond and introduced in 2019, gained significant momentum, enabling interbank transfers within less than ten seconds, 24/7 throughout the year.
2024–2026: The Impact of Artificial Intelligence and the Maturation of Online Banking
Attention shifted toward AI-driven fraud detection and prevention systems and AI-powered chatbot assistants. Physical transactions at branches declined dramatically, with most remaining branches focusing on complex operations and advisory services. Digital Branches emerged, while the transformation of branches into cashless units accelerated. Cash operations—both deposits and withdrawals—are now conducted almost exclusively through ATMs and MFMs, while over-the-counter transactions have become subject to substantial fees. Most local banks have joined the instant payments service, allowing transfers in both Romanian lei and euros where implemented.
Challenges for 2026–2027
- Ensuring cybersecurity in an increasingly sophisticated threat environment, amplified by AI and growing online data volumes, requiring continued investment in platform security, two-factor authentication, biometrics, and related technologies.
- Reskilling branch employees from operational roles to advisory functions, enabling them to provide complex credit, financial planning, and investment
- Managing customer relationships with greater empathy, offering emotional support and personalized solutions during financial difficulties or crises.
- Recalibrating ethics and governance requirements, with analytical staff increasingly responsible for overseeing automated and AI-generated decisions.
- Addressing the shortage of IT professionals and cybersecurity experts capable of developing and managing banking digital infrastructures.
- Reducing employee turnover and attracting younger talent by addressing concerns related to compensation, workload, digitalization-driven stress, work-life balance, remote work opportunities, and bureaucratic
- Responding to intensifying competition in the financial products and services market.
- Expanding financial and digital education programs, particularly those aimed at improving financial and digital inclusion in rural areas.
- Adapting to new European regulations, requiring banks to restructure operations and governance frameworks in accordance with initiatives such as DORA (Digital Operational Resilience Act), PSD3, and emerging Artificial Intelligence regulations.
Romania’s banking system therefore faces a challenging environment marked by crises, uncertainty, and reduced legislative and fiscal predictability. At the same time, rapid technological advancement is compressing decision- making cycles, creating a multitude of challenges that require banks to continuously strengthen their capacity to manage an increasingly complex landscape.
