BBVA: looking to the future

1. Innovation to boost growth
2. Support in the search for new markets
3. An ally in the sustainable transition as a business opportunity
4. Top talent to keep close to the customer/improve the customer experience

Its strategic vision has allowed the bank to not only adapt to the changing dynamics in the economic and social climate, but also to be experts in staying ahead of the curve, providing its customers the tools and support they need at critical points in their lives or in their business endeavors.

BBVA currently has a presence in over 25 countries, with a team of more than 120,000 professionals and 74 million customers, making BBVA the bank of reference worldwide.

In Spain, the weight of SMEs in the economy is greater than the average for the European Union. Microenterprises, those that have fewer than 10 employees, represent nearly 93 percent of all companies. The first challenge Spanish companies face is growth and one of the critical aspects of their growth strategies is the commitment to innovation. BBVA accompanies the businesses that seek to stay ahead of the future, providing technology, personalized support and a comprehensive outlook of what they need at each point in time.

The bank has been a pioneer in applying innovative digital solutions to help its corporate clients manage their daily tasks more easily and plan their finances in a more agile and efficient manner. Since the launch of the first app for business in July 2015, the bank has continued to innovate and develop digital services for its corporate clients, leading to various awards in recent years. They include digital processes designed to save companies time, such as fully digital account registration in less than 10 minutes, and online management of guarantees through AvalBox, one of the top rated services through which the bank has provided guarantees for over €4 billion of transactions in its six years of existence.

BBVA has also stayed ahead of the curve and made a difference in the way financing is offered. Over 125,000 SMEs and microenterprises, bank clients in Spain, have applied for loans through a system that grants immediate, personalized financing in a fully digital process. The loan is calculated based on the amount of turnover in their point-of-sale (POS) terminals. Financing through this system has grown 121 percent over the past year, and over half of borrowers become repeat customers. Of the financing solutions for large companies, there is also the option to have online access to financing for multiple purposes with a single limit. This way, companies can easily cover their recurring payments and anticipate national and international payment collections, which helps them improve the financial planning of their business.

And if there is one thing that is important to companies it is the moment of payment, when their customers demand safe, simple and fast payment systems. BBVA was once again a pioneer in payment solutions, staying at the cutting edge by transforming cell phones into POS terminals and by offering businesses the option of using Bizum as a payment method. BBVA clients who currently use their smartphone as a POS terminal increase turnover by 55 percent, and nearly 50 percent of ecommerce transactions that take place through the instant payment system are made with BBVA. Furthermore, in the first five months of the year alone, turnover from BBVA clients through their POS terminals was 16.87 percent higher than the same period last year.

With the aim of improving client experience and anticipating their needs, the bank’s historic commitment to innovation has also led BBVA to remain close to talent and the businesses making a difference. The recently created unit, BBVA Spark, helps high-growth companies take their business models to the next level and launch in new markets. In under two years, BBVA Spark has provided more than €300 million in financing to its over 1,200 clients in Spain, Mexico, Colombia and Argentina.

Currently, BBVA continues to stand out in the banking sector for its commitment to disruptive technologies like artificial intelligence. In fact, the bank has been using this technology in different areas of the bank for over 15 years, and working directly with the business units to use data to address their specific needs. One of the use cases that bank customers value the most is the tools designed to help them make better decisions and have a positive impact on their financial health. Six in ten of BBVA Spain’s digital customers now use the automatic savings features, among other tools, helping them save 11 percent more than customers who do not use the tools.

In addition to digitization, another factor that sets a company's growth strategy apart is diversification of its business sources. According to the monthly foreign trade report compiled by the Ministry of Economy, Trade and Enterprise, Spain's exports to many of its key markets hit record highs in 2023. BBVA's broad international footprint turns it into a reliable traveling partner in this often challenging process. In 2023, the bank supported more than 100,000 companies in their international ventures.

To support both SMEs and larger companies, the bank offers a wide range of digital solutions such as payments in more than 50 currencies, online finance or foreign exchange risk management; or free tools to help explore new markets (market reports, customer and supplier search, export cost calculators, and more).

In 2023, BBVA supported SMEs and companies in their international expansion through financial products and services, guarantees for expansion in foreign markets and international trade risk management solutions for an amount of €31,065 million, twice as much as three years ago.

In addition, for companies looking to establish themselves abroad, BBVA offers a network of more than 2,500 managers who will assist them in 14 countries where the bank is present. An international coordinator enables companies to quickly and easily contact a personalized manager in the destination country who will help them to open accounts, raise finance and manage their cash flow in liaison with their account manager in Spain.

In addition to digital transformation and the search for new markets, sustainability is a major growth and business opportunity for Spain's productive base. Companies of all sectors and sizes need to undertake transition plans to reduce their emissions. At BBVA, one of our strategic priorities is to support our clients in their transition plans, with both advice and finance.

Committing to energy efficiency in a company not only means committing to the transition to a greener and more inclusive world: it can also mean cost savings and a source of opportunities for your business. By upgrading their production equipment, implementing photovoltaic self-consumption facilities and adopting more advanced energy management practices, companies can significantly reduce their energy costs and boost their profitability.

Financial institutions barely emit carbon dioxide, but they play a crucial role in the necessary decarbonization of the economy by channeling capital and financing sustainable projects. BBVA provides companies with specific financing solutions and innovative digital tools, collaborates with strategic partners and assists them with a specialized team to help them in their sustainability strategy.

In 2023, almost 30 percent of new long-term finance granted by the bank to businesses was earmarked for sustainable projects. In addition, BBVA has mobilized¹ almost €30 billion in sustainable business in Spain. Specifically, the sustainable finance that has grown the most relates to small and medium-sized enterprises (doubling in 2023 with respect to the previous year).

The bank is also at the forefront in its commitment to innovation as a lever for decarbonizing the economy. Aware of Spain's opportunity to lead cleantech investment in Europe, BBVA is stepping up financing and investment in clean technologies, focusing on four key areas: hydrogen and biofuels, energy storage, mobility, and carbon capture.

Digital solutions provided by BBVA to its customers are also relevant, including carbon footprint calculation. BBVA was the first bank in Spain to launch a feature that enables all its customers, individuals and enterprises alike, to measure the impact of their daily activity on carbon emissions. In addition, the bank relies on expert partners with the capacity to help companies not only to calculate their carbon and water footprint, but also to implement measures, verify the improvements achieved and provide offset mechanisms where necessary.

One of the sectors where innovation has become key and where there are major opportunities for decarbonization is the agri-food sector. Agri-food is becoming increasingly high-tech and demands innovative ideas for its products, processes and business models. In some subsectors, such as irrigation, or intensive and extensive livestock management, digitization is taking place in an accelerated and increasingly relevant way. BBVA has designed tools to facilitate digitization in areas such as irrigation control, livestock and pasture management and carbon footprint reduction.

In addition, the bank promotes actions to disseminate and recognize sustainable practices in the sector, such as the BBVA Awards to the Best Sustainable Producers, which has recognized 46 SMEs and self-employed workers in its five years of existence for generating a positive impact on their environment.

¹This includes any mobilization of financial flows, on a cumulative basis, in relation to activities, customers or products considered sustainable or that promote sustainability in accordance with internal and market standards, existing regulations and best practices. The foregoing is irrespective of the fact that such mobilization, whether initially or at a later time, may not be recognized on the balance sheet. Amounts of sustainable channeled business are determined using internal criteria based on both internal and external sources of information.

Talent attraction and retention has become a significant challenge for companies in Spain, especially in the current context marked by economic uncertainty and technological disruptions. To address these issues, companies must make a firm commitment to strategies aimed at improving and retaining talent by leveraging the opportunities offered by technology, lifelong learning and the creation of attractive and flexible work environments.

BBVA excels in its development policies, a culture of diversity and inclusion, its flexible work methods and the ongoing creation of opportunities for its professionals, which has made it a leader in the banking sector in Spain in talent attraction and retention. BBVA's model aims to enable everyone to grow professionally and personally, based on meritocracy, in an environment of empowerment, trust and transparency.

This strategy has led the bank to be ranked, for the second consecutive year, the best bank to work for in Spain, according to the Randstad Employer Brand Research study. In addition, BBVA won the Gallup Great Workplace Award for creating an exceptional working environment.

It is a recognized fact, therefore, that BBVA, a leader in digitization, offers great opportunities to attract and retain talent. Over the past two years, the bank has hired more than 7,000 technology and data professionals globally, a figure that will increase in 2024 with nearly 3,000 new hires.

In addition, BBVA has put a lot of focus on taking care of its professionals, especially those who provide direct service to its customers, with continuous training and managerial support being key to its strategy. In fact, since 2022, the bank has launched more than 80 initiatives proposed by employees in its Spanish branch network to improve their wellbeing.