Regarding the challenges in the development of digital banking, a need has arisen to make changes to the regulatory framework, address the issue of cybersecurity and overcome the cultural resistance within the banks themselves.
Banks in Latin America project that during the next five years they will have to share new market niches with the startups. They are thinking of giving priority to the technological aspects of the ‘fintech’ related to digital channels, cybersecurity, data analysis through digital culture of the organization. Although several of them consider that their current innovation strategies will be sufficient to maintain their financial leadership.
BBVA has been making important efforts in terms of digital transformation and has focused on offering the best customer experience, with new products and services with a high technological component. In fact, thanks to digitalisation, it has been possible to move from a product bank to a bank that anticipates the needs of users and advises them on their most important financial decisions.
The ‘fintech’ sector in Latin America grows With record investment figures. The creation of ‘fintech startups’ in Latin America has gained momentum in the last year and now exceeds 1,100 companies. Little by little there is a consolidation and maturity of the whole ecosystem in the region. Brazil, Mexico and Colombia are the countries with the highest number of ‘fintech’ ventures.
This has resulted in customers making more and more use of the digital tools that the bank has put at their disposal. These tools are a part of its purpose, to make all the opportunities of this new era available to all.
In Latin America, BBVA is bringing the same user experience with frontline digital services in the seven countries where it is present. An example of this global approach is GloMo (Global Mobile), the first mobile banking development platform. GloMo operates in Spain, Mexico, the United States and Uruguay, and will soon make its landing in Peru. It is a solution that unifies design and functionalities and will allow to unify the customer experience in all countries.
BBVA has also applied different strategies in relation to the “fintech” ecosystem. It has been promoting the development of fintech startups through initiatives such as Open Talent. Open Talent has been promoting this ecosystem for ten years, identifying and supporting the development of the best financial technology solutions.
Fintech BBVA works with fintech startups in Latin America to create the digital solutions of the future BBVA. It is developing an open innovation program in the region, known as ‘fast track’, which makes it possible to streamline and make more efficient the processes that the Group develops together with the startups. Their aim is to implement new digital products and services for the benefit of customers.
BBVA has invested in several fintech companies such as the British Neo-banking Atom Bank and also in the German startup SolarisBank. It also invested in the Brazilian neo-Neon and Trussle, the British ‘online’ mortgage platform. Recently it has invested in Grabango, a ‘startup’ of invisible payment technology in the US. UU
Similarly, BBVA acquired Madiva, a ‘startup’ that has participated in the development of the BBVA Valora tool. Madiva uses ‘big data’ to provide information on the value of homes and on the offer of properties by zones. Also the Mexican startup Openpay, a company that offers a wide range of payment solutions and advanced online functionalities for businesses.
All these ‘startups’ and ‘fintech’ companies with which BBVA has been working, are already integrated into the Group’s DNA and with them are developing new products and services that mark innovation in the banking business.