Bank of Valletta has entered into a strategic collaboration with Oracle Financial Services as it moves to modernise its core systems and transition toward an AI-first banking model.

The multi-year collaboration, formalised through a non-binding Memorandum of Understanding, will focus on rebuilding key parts of the bank’s technology landscape using cloud-native architecture, embedded artificial intelligence, and regulatory compliance by design. The agreement was signed in Malta by Bank of Valletta CEO Kenneth Farrugia and Oracle Financial Services senior vice president Sovan Shatpathy, in the presence of senior executives from both organisations.

The initiative is structured around four pillars: governance and engagement, compliance and risk management, innovation and skills development, and performance excellence. Together, these will guide the bank’s technology overhaul while ensuring strong oversight and alignment with regulatory requirements.

A key milestone in the roadmap is the planned deployment of Oracle AI Agents across BOV’s retail and corporate banking operations, payments, and insurance by mid-2026. These AI-powered tools are expected to support processes such as loan origination, credit assessments, and customer engagement, with the aim of improving speed, consistency, and personalisation.

BOV’s leadership said the collaboration is designed to balance innovation with stability, allowing the bank to evolve its services while maintaining the reliability expected by customers. The focus, they said, is not simply on automation, but on building an operating model where intelligence is embedded into decision-making and service delivery from the ground up.

Oracle, for its part, described the partnership as an example of how financial institutions can adopt AI and cloud technologies without compromising governance or regulatory discipline. The collaboration will also include knowledge-sharing and capability-building initiatives to help BOV develop internal skills alongside new technology.

The agreement marks a significant step in Bank of Valletta’s broader transformation journey, as Maltese financial institutions face growing pressure to modernise infrastructure, improve customer experience, and operate efficiently in an increasingly digital and data-driven environment.

While the Memorandum of Understanding is non-binding, both sides said it establishes a framework for long-term cooperation aimed at delivering sustainable value for customers, shareholders, and the wider economy.