Half of All BBVA Customers Now Transact Through Its Digital Channels

Half of Spanish Bank BBVA‘s customers transact through digital channels, the bank tweeted today.

Derek White, BBVA’s global head of client solutions, said in a company blogpost:

Despite having known this milestone was coming for a while, it is a tremendous validation of our transformation strategy and for our colleagues to have reached it. Passing this 50% tipping point is a testament to the fact that the power of connected technology is bringing real benefits to those who bank with us, and we will continue to accelerate the amazing products and services will offer in 2019 and beyond.

Part of the bank’s transformation strategy included updating its mobile app across the board, working on UX design projects as well recruiting innovation from the global fintech scene. Most recently, the bank launched its Open Innovation Competition. This program is a competition for fintechs across the globe innovating in areas of mobile banking, payments, cloud technology, among other things. The competition’s current batch has 854 applicants. Out of this pool, the bank will select the best companies to work with on digital products and services and potential long-term partnerships.

The bank also underwent restructuring of its key executives, including a newly appointed CEO, Onur Genç. All these new executives have a technology background, and were appointed with the specific goal to develop the bank’s technology offerings.

As for today’s announcement, the bank noted in a blogpost that its flagship operation in Spain was the first of the global bank’s units to reach that 50% “digital tipping point,” in October 2017. Six out of 10 of the bank’s core markets crossed that number in November 2018 with 26.4 million customers using the bank’s services through mobile devices, PCs and tablets. This number represents a YOY increase of 19%, the blogpost stated.

BBVA Compass, the bank’s U.S. franchise, was one of the core markets to reach that number. The others included Turkey, Argentina, Colombia and Venezuela.

“While we cannot give specific numbers on our digital growth,” a BBVA spokesperson said in an email to Bank Innovation. “BBVA Compass has seen solids levels of new bank customers being onboarded through digital means, including through the bank’s online and mobile channels. Seeing the volume of customers who onboard digitally, and the areas in which they live, gives us keen insight into how we can continue our growth efforts.”

BBVA Compass specifically houses a team of in-house engineers, and most of the digital products are built by the bank’s internal engineering team, Bank Innovation has learned. The bank tends to partner with third-party services for technology like data aggregation or core processing, but most of the “heavy lifting is done internally,” José “Pepe” Olalla, head of business development at BBVA Compass, previously told Bank Innovation.

When it comes to the product, the innovation team at BBVA Compass prefers to bring it to market as quickly as possible and then work retrospectively to tweak and improve it.

“We prefer to launch the minimum viable product with the basics, and then learn what needs to be added or improved from data gathered from customer usage and interaction,” he said. “This is why we have agile methodology, and our team has a lot of engineers and designers. Over the past two years, the goal has been to become more and more agile.”

Also See: BBVA Compass App Update Allows All Customer Accounts to Be Aggregated

Alex Carriles, Head of Online Banking, BBVA Compass will speak at Bank Innovation Ignite in Seattle in March 11-12, 2019 on the Natural Language Banking panel. Click here to register.

  Like This Post