Ana Cabirta

Artificial intelligence and big data, are proven contributors of innovation to the financial system. The digital explosion and technological advances have caused a revolution in society and in the corporate organization. As explained by Jorge Sicilia, Chief Economist of BBVA Group and director of BBVA Research, the financial sector is no stranger to these changes and the next wave of innovation is going to be based on artificial intelligence.

In recent months the world has witnessed an escalation of the U.S. - China trade war, with announcements of more restrictive and retaliatory measures. According to José Manuel González-Páramo, Executive Director and Global Head of Economics and Institutional Relations at BBVA, given this climate of global uncertainty, it is essential to build new bridges and establish areas for cooperation.

Ízaro Amilibia, discipline manager at BBVA’s Talent and Culture area, attended the LGBTI Atlantic Conference held in Bilbao to explain the bank’s initiatives in this area. The event gathered activists and experts from across the world to discuss the international reality of this community. Supporting LGTBI people is one of the pillars of BBVA's commitment to diversity and inclusion.

The initiative started by chef Jordi Roca, which sought to raise awareness of conditions affecting the sense of taste, was a resounding success. The ambitious project was captured in the documentary “El sentido del cacao” (The Sense of Cocoa), which won six Stevie awards - one of the most prestigious awards in the advertising industry.

Good financial health is a growing and serious concern. Individuals who exhibit financial vulnerability may spread negative effects to their households, compromising their well-being. It is therefore critical to understand financial health and the extent to which it can contribute to improved financial resilience. According to a recent report by BBVA Research, digitalization and financial education are key elements to be included in any public or private measures intended to help improve individual financial resilience.

BBVA is Spain’s most transparent financial institution, according to 'Contribution and Transparency 2018', a report published by Fundación Compromiso y Transparencia (Commitment and Transparency Foundation). In the benchmark report, which lists all IBEX 35 companies according to their fiscal transparency practices, BBVA takes the fourth spot.

José Manuel González-Páramo, Executive Board Member and the Head of Global Economics, Regulation and Public Affairs at BBVA, attended a reception for the Carolina Foundation’s 2018-2019 scholarship recipients. There he explained the changes that could affect jobs in this age of constant digital transformation and stressed BBVA’s commitment to Latin America.

The European Central Bank (ECB) announced at yesterday’s meeting its future guidance on rates, which will remain on hold at least until the first half of 2020. As noted by BBVA Research in its ECB Watch report, the ECB is open to adopting further measures if necessary.  The ECB also announced the conditions of its TLTRO-III liquidity line.

Speaking at the European Conference on Financial Integration and Stability, BBVA Head of Regulation Santiago Fernández de Lis detailed the benefits of a true single digital market and the need for greater harmonization of the regulation governing digital financial services. The event, jointly organized by the European Commission and the European Central Bank, was held in Brussels last week.

Thanks to DiGiX 2018, BBVA Research’s multidimensional digitization index, it is possible to compare which countries are the most advanced in this area, and discover their strengths and weaknesses. The index analyzes the economies of 99 different countries.  Top in the ranking are Luxembourg, the U.S. the Netherlands, Singapore and Hong Kong, while Malaysia, South Africa, Chile and Costa Rica are regional leaders.

Mario Draghi reiterated this week that the ECB could tentatively delay the planned rate hike until next year. At a conference in Frankfurt, Draghi responded to banks’ concerns by saying negative rates could impact bank profitability, although it “is not an inevitable consequence.” Given these statements, we asked Olga Gouveia, Lead Economist for Financial Systems at BBVA Research, what is the impact of the decision to keep negative interest rates. In her opinion, it is reasonable the precautionary tone of the ECB, provided that there is a planned hike on the horizon.

All eyes were on the possibility yesterday that the European Central Bank (ECB) could make changes in the forward guidance on rate and on a potential announcement of new liquidity measures. And Mario Draghi didn’t disappoint: he answered both questions. He announced that the ECB will keep interest rates on hold until at least the end of this year and another series of auctions of long-term liquidity. BBVA Research has just released an ECB Watch report covering and assessing the measures announced by Draghi.

The Eurozone finance ministers recently approved the appointment of Ireland’s Central Bank Governor,  Philip Lane, as the next chief economist at the European Central Bank (ECB). Alongside the central bank’s president and the members of the Executive Board, which will also see new appointments this year, the chief economist plays a key role on the institution’s Governing Council. According to BBVA Research, this year’s scheduled turnover at the bank, may result in changes to the ECB’s current stance on monetary policy.

Only 7% of girls see themselves as scientists in the future. This is due to the gender gap that remains in science, technology, engineering and mathematics (STEM) sectors, even though more than a century has passed since Marie Curie won the Nobel Prize in Chemistry.  That’s why the International Day of Women and Girls in Science continues to be so important.

Fintechs and major tech corporations have started rolling out new financial services that have the potential to severely disrupt the financial sector.  BBVA Research has just published “Digital Transformation and Competition in the Financial Sector,” a working paper that analyzes the regulatory challenges emerging in this new scenario to guarantee that customers can reap the benefits enabled by new technologies while ensuring fair competition conditions in an increasingly diverse ecosystem.

Global banks face six major challenges when tackling their anti-money laundering efforts: their international footprint, supervisory pressure, maximizing efficiency and effectiveness, leveraging technology, recognizing specialized talent and raising awareness among society about how important it is that everybody collaborates with financial institutions.

The conference “Decentralized World” was recently held at BBVA’s Open Space in Madrid, focusing on the decentralization of the economy and trying to unravel some of the possibilities that blockchain technology can offer for data management in the future.

José Manuel González-Páramo, Executive Member of the Board and the Head of Global Economics, Regulation and Public Affairs at BBVA, attended a meeting on the challenges facing the banking industry’s regulatory architecture on an international and local level.  He spoke of the importance of further developing the Basel III framework, as well as the need to implement it in a consistent and flexible manner.