South America
2015
Constant €
Net attributable profit
€ 905 M
+8.7% vs. 2014
Activity increase
Robust recurring revenues generation
Stable risk indicators
A detailed explanation of the aforementioned business area can be found in the Management Report.
Definition of the area
South America manages the Group's banking and insurance businesses in the region. The area is notably diversified and has units operating in practically every South American country.
BBVA's footprint in South America
(31-12-2015)
| Bank | AFPs | Insurance company | |
|---|---|---|---|
| Argentina | x | x | |
| Bolivia | x | ||
| Chile | x | x | |
| Colombia | x | x | |
| Paraguay | x | ||
| Peru | x | ||
| Uruguay | x | ||
| Venezuela | x | x |
Management priorities
The Plan framework includes implementation of various transformation programs, development of a number of technology projects, an increase in the number of distribution channels and enhancement of the value offering. Significant progress has been made in the goals set, such as positioning BBVA as the Bank preferred by customers and the biggest digital financial Group in the region.
The efforts in 2015 have therefore focused mainly on the following lines of action:
1. Strategic priority 1: To provide a new standard in customer experience to our customers
Improving the service quality offered across all the channels for interaction and ensuring continuous contact to identify the root causes of their satisfaction or dissatisfaction. This focus on quality has enabled BBVA to lead its peers in many of the South American countries in which it operates, such as Peru, Argentina, Paraguay and Uruguay.
2. Strategic priority 2: To drive digital sales
The digital strategy has been strengthened through the launch of websites with more features, specific apps for mobile banking and the design of a new service offering. One example is BBVA Wallet, a product first launched in Chile, that enables customers to manage their payment channels easily and was named Most Innovative Banking Product Chile 2015 by Global Banking and Finance Review magazine. BBVA Wallet will be launched in other South American countries. The Francés GO app created by BBVA Francés in Argentina enables customers to obtain exclusive benefits such as discounts and points for using the bank's payment channels. The banks in the region have enhanced their digital sales capabilities, selling around 10% of the total in some products, such as consumer finance.
3. Strategic priority 3: To create / associate with / acquire new business models
New joint ventures have been implemented in the business of consumer finance for vehicles, establishing strategic alliances with global brands that have a significant presence in Colombia and Argentina. In Peru, the purchase of 100% of BBVA Consumer Finance Chile's auto finance business has been completed.
4. Moreover, and as part of strategic priority number 6: To develop, retain and motivate a first class workforce
Transformation of the internal working methods has continued with initiatives such as:
- Development of new ways of working, particularly through the gradual introduction of work teams using the agile format, which expedites and makes more efficient the development of solutions and products by setting up multidisciplinary teams focused on a common goal.
- Transformation of the work spaces in the corporate headquarters to enable faster and simpler interaction. This transformation has already been completed in Chile and will soon be implemented in the new headquarters in Argentina.
The new Growth Plan was launched in the second half of 2015 to strengthen BBVA's leading position in the region as a benchmark in service quality and capacity to relate digitally with its customers
For 2016, South America will continue to prioritize its development toward a digital ecosystem, aiming not only at the sale of products but also transactionality and digital self-service. The region will also continue to optimize the commercial capabilities of its physical network. Moreover, it will develop new projects to speed up the launch of products and services and reduce costs.
A new boost will be given to action plans aimed at providing the best possible experience for our customers. The following has been planned:
- More frequent launch of products and development of capabilities geared toward comprehensive customer management, with particular emphasis on creating a differential digital value proposition leveraged on the transformation teams working according to the agile methodology.
- Development of personal formats for telephone service, making available to our customers a more convenient, accessible and specialized relationship model.
In line with the enhancement of digital sales, tools and capabilities will continue to be developed to boost sales by developing end-to-end remote and digital contracting capabilities such as the launch of one-click products (contracting with just one click).
Moreover, alliances will continue to be developed to improve the value proposition for our customers, for example, through a point programs with leading airlines such as LAN in Argentina, and the extension of Avianca's LifeMiles program, which will cover both Colombia and Peru. Management tools and models will be implemented to optimize fees and prices in the network's sales process. In addition, the value proposition for the bank's international customers will be enhanced, with the focus on the corporate segment, to help them expand their businesses across BBVA Group's footprint.
With the aim of achieving the highest level of efficiency, plans will be implemented to support the network's commercial management with initiatives aimed at increasing its productivity and effectiveness, optimizing resources and reviewing tools, processes and capabilities.
All these activities will be performed by prioritizing our customers' satisfaction, based on a quality model in which both digital and personal interaction with customers is the core element to enable us to improve continuously.
