In this environment, BBVA is starting from a very advantageous position, because it has an excellent track record in retail banking management and has the following outstanding assets:
The Group therefore has a very clear idea of how it should approach this new environment: with a transformation from and to the customers that at the same time enables it to transform today's business, create new business models and maintain the unique banking model.
To guide this transformation journey, BBVA has defined a new Purpose to help us lay the foundations for the Bank's strategy and decision-making. The Purpose is the reason, what determines our conduct and our decisions. Our purpose is to bring the age of opportunity to everyone.
We are embarking on a transformation from and to the customers
By “to bring”, we mean our role in providing access to capital, tools, products and advice. We want to help people manage their money better and be better informed. We are here to offer them that opportunity.
“To everyone” means we serve individuals, families, entrepreneurs, business owners, startups, private and public corporations, as well as BBVA’s employees.
“The age of opportunity” means framing this moment in time not by technology itself, but by the core benefit that technology brings to people and society.
Our new Purpose will serve as a rallying cry to inspire, motivate and galvanize the entire Organization, and it should guide our strategy and decision-making. To this end, six strategic priorities have been defined, which are aligned with the Purpose and lead this transformation.
Our Purpose is to bring the age of opportunity to everyone
To develop a better end-to-end experience. To really position ourselves with the customers, to advise the best for them, with no conflict of interest, to devote more time to talking to them. In short, to transform the value proposition to help customers understand their financial situation, plan it and make the right decisions. Our customers are not interested in knowing about the processes, policies, etc. They want us to help them solve their problems.
To make progress in this transformation it is essential for customers to be digital users. To do so, we have to make the most of the new channels we have available, since a significant part of our customer base is demanding new ways of interacting with the Bank, particularly through mobile devices (for the retail segment) and specialized platforms (in the case of corporates).
New business models are emerging today with innovative value propositions that are driven by paradigms different from those of the traditional banking industry. To adapt to the new environment it is essential to understand and participate in this evolution, which will enable us to choose the best tailored model to each given opportunity by:
In-house
development
Strategic
Alliances and
Partnerships
Investment in
Disruptive
Startups (1)
Digital
M&A
New independent businesses
With a 100% digital culture
Leveraged on BBVA’s assets
With new technological players
With digital competencies and skills
(1) Illustrative examples. Ribbit Capital and 500 Startups are venture capital funds.
This priority is focused on maximizing the return on available capital in a sustainable manner over time. There is increasing emphasis on obtaining a return on capital, which is a resource that since the outbreak of the crisis has become the most expensive and scarce resource in the banking industry, as regulatory demands have increased substantially.
BBVA has a model that has shown great strength and resilience during the crisis and continues to be valid, but the environment demands even more efficiency in resource allocation. This is why it is essential that optimization goes hand in hand with the Group's growth decisions, that investments and business decisions that provide a better return on regulatory capital are prioritized, and that this is reflected in day-to-day management, in budgetary processes, in planning, etc.
It is necessary to leverage technology to enable us to simplify processes and develop the distribution model toward one more efficient from the structural point of view, giving us a competitive advantage over our peers.
Being cost-efficient does not mean a detriment of service or quality, it means providing higher-quality solutions, with straight-through processes, etc.; in other words, processes with no interruptions that contribute to achieving greater efficiency, but offering our customers the best user experience.
In the same way that we want to offer the best experience for our customers, we also strive to develop the best “employee experience”. This means offering an attractive value proposition to enable the best talent to be identified, attracted and retained, contributing to the development of the professional careers of each employee. In this way we want each interaction by employees with the Bank to be excellent, leading to greater satisfaction for both parties.
It is important to adapt the culture to an environment that requires new ways of working, promoting values such as entrepreneurship, curiosity, collaboration among the teams, the breaking down of silos, empathy, etc. In short, it is about remodeling our culture to develop some of our great values while adding new ones.
If we succeed in achieving all of the aforementioned, it will enable us to:
More customers
+
More satisfied
More engaged
More profitable