South America maintained its growth levels in both business activity and earnings throughout 2012. It also improved its asset quality indicators against a background of severe financial turmoil at a global level and high competition in the region. This has been possible thanks to the plans implemented in the area, focused on: growth in key segments (individuals and corporates), customized value-added products for each segment, and improvements in customer service, productivity and efficiency.
The same strategic focus will be maintained in 2013. The business strategy in South America will be based mainly on the following pillars:
1. Promote a cross-cutting approach in the Group’s business initiatives.
2. Make the most of the Group’s strengths and experience in each country in terms of segments, products and geographical areas.
3. Achieve the right balance between specialization by geographical area and by business (banking, segment, product, multi-channel service, etc.).
In addition, simplicity will be present in each one of the 5 priority dimensions for the area:
1. Innovation: to define a value proposition adapted to customer needs and to the Bank’s abilities.
2. Branding: to reinforce the image of an easy, innovative and flexible bank, with products and channels designed to offer a better customer service. The Bank will also continue to promote a coordinated and consistent strategy regarding advertising, communication and corporate social responsibility.
3. Planning: especially in relation to organizational and commercial models.
4. Quality: to move from managing metrics to managing processes focused on the customer’s experience, using a “Comprehensive Quality Model” that each country must put in place and execute.
5. Intelligence: to build commercial trend models in all the countries that contribute to increasing productivity and making better use of the multi-channel service, in order to develop both proactive and reactive customer retention models, design customer loyalty models, and implement a segmentation model according to the Group’s criteria.
Lastly, with the launch of the GPS Plan (Growth, Performance and Stability), the Global Risk Management area has set out the main risk management lines for South America for the period 2012-2013. The aim is to make the most of the opportunities afforded by the region within the prudent framework that characterizes BBVA.