As European banks fight back against neobanks such as N26, Wise, Starling, Monzo and Revolut that are taking more of the incumbents’ market share and competing across every service area, it is the Spanish banks who look best placed to match them.
BBVA is renowned for its early digital transformation under former chairman Francisco González, who began his career as a programmer at IBM. When he stepped down, the bank promoted its head of digital banking, Carlos Torres Vila, first to chief executive and now chairman.
The past 12 months has seen BBVA regain its position as the region’s best digital bank.
BBVA says that its aim is to improve its customers’ financial health. To do that, it uses data science to calculate multiple variables related to customers’ income, expenses and debt. Based on this information and using analytical engines developed by the bank, BBVA can identify the historical and daily characteristics that define each customer: their average income from the past year, ability to save, financial cushion available, whether or not they have debt, their most common expenses and their investment products. Customers are then offered personalized suggestions.
The bank is looking beyond Spain. It recently increased its investment in Atom and is the largest shareholder in the UK digital bank. BBVA launched a full retail digital bank in Italy that is commission free and includes a new type of card with no long card number or short verification number but rather with a key generated through the app for each purchase.
In Spain, BBVA has launched a comparison shopping engine on its app that helps when purchasing an electric car. The tool shows the price of both types of vehicles (petrol and electric) and offers the customer an estimate of the costs (fuel expenses, maintenance, insurance and parking) of both options throughout a year. Finally, the tool allows users to request a loan for the purchase of the vehicle.
Another step forward in 2021 was the launch of a carbon footprint digital calculator available in BBVA’s apps for individuals, small and medium-sized enterprises and corporate customers. It automatically learns to read customers’ bills, distinguish their energy costs and calculate their equivalent in carbon dioxide emissions. Currently this calculator is operating for more than 12 million retail customers in Spain and Turkey and is available for 300,000 businesses in Spain.
Our pioneering commitment to digitalization over a decade ago is an enormous competitive advantage that continues to bear fruit
Carlos Torres Vila
“Our pioneering commitment to digitalization over a decade ago is an enormous competitive advantage that continues to bear fruit,” Torres Vila wrote to shareholders.
In 2021, 40% of BBVA’s nearly nine million new customers signed up using digital channels. That figure was just 4% five years ago.
