The Digital Transformation of BBVA
Axis Corporate hosted an executive breakfast with the participation of Carlos Torres Vila, BBVA, CEO who shared his experience on the digital transformation of BBVA, with an audience of 200 attendees, at the Palace Hotel in Madrid.
Axis Corporate President, Casimiro Gracia, moderated a discussion on the main challenges for the financial sector and the process of change towards the digitalization of the market.
Before inviting views from the audience, Casimiro Gracia stated that the current financial market is facing changes in consumer habits and the gradual emergence of new competitors. How financial institutions respond to this challenge, will define a new banking reality.
Casimiro Gracia highlighted four important factors that face the Spanish financial sector in the coming years:
- An environment of low interest rates
- The emergence of new digital competitors
- The difficulty of being profitable with overburdensome regulation
- Difficulties restoring consumer confidence.
“An environment marked by the emergence of new technologies that has forced companies in the sector to embark on ambitious processes of digitalization to respond to the demands of the market” – concluded Gracia.
BBVA invested over 900 million Euros and launched its Digital Banking unit in 2014. Today, the platform processes more than 450 million transactions in just 24 hours.
“BBVA aspires to be the trusted bank for its clients by helping them make the best financial decisions, with personalized advice” said Torres.
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Data is Key
BBVA believes that the bank needs to evolve to digital in the future. Carlos Torres Vila also emphasized that data will be the key raw material for decision making. “It will be fundamental to generate a circle of trust with the client,” Torres said. In this sense, if intelligence is applied to the data, value-added recommendations can be generated that will increase the confidence of the clients, thus completing the circle. BBVA will be moving towards an office model that supports the digital transformation. Today, many of its clients are digital but they also go to the branch (in what Carlos Torres Vila called a hybrid model). Digitalization and advice for operations with greater added value are promoted.
Pablo Beivide Cavia, Director of Business Transformation at Axis Corporate further reiterated the bank’s success in digital: “BBVA has put the customers first when designing and transforming their online banking services. BBVA online banking services is leading the way in helping customers make better financial decisions by using customer data to offer money management insights.”
Digital Future for BBVA
The bank aspires to have 25 million digital customers worldwide in the coming years, wherein they predict that more than half of which will use the mobile banking functionality. As part of its initiatives to move to a more digitized process, BBVA is making profound changes to its corporate culture. These initiatives have recently earned BBVA the “Global Innovator in Banking 2017” award by European Financial Management & Marketing Association (EFMA).
The executive breakfast event was organized by Axis Corporate and Association for the Advancement of Management (APD).