Francisco González sees open platforms and cloud computing as essential to the future of the banking sector
In his address during the Institute of International Finance’s Spring Meeting in Madrid, BBVA Executive Chairman Francisco González stressed that opening the technological platforms to collaboration with startups and a progressive cloud migration will be critical to the future of the banking sector.
Francisco González participated in a panel titled Banking: Views from the C-Suite, together with Santander Chairwoman Ana Botín, and Chairman of the Board of Credit Suisse, Urs Rohner. The session was moderated by Douglas Flint, Group Chairman of HSBC Holdings.
In his presentation, BBVA Executive Chairman indicated that, to tackle the essential transformation of the banking sector, institutions need to open their technology platforms to collaboration with startups. These technology firms are going to play a key role in the disruption of the financial industry, he said. Also, he urged banks to start working on the progressive migration of their technologies to the cloud, the sooner the better, to benefit from the substantial cost savings that this technology enables. Furthermore, Francisco González expressed his conviction that the key challenge in an institution’s transformation process is building the adequate combination of talent to supplement the traditional banking business with new digital competences.
Francisco González also emphasized the pivotal role of regulators in the definition of an adequate regulatory framework, striking the right balance between financial stability and the development of new business models. This balance is essential to maximize the benefits that technology can bring.
In his presentation today, BBVA Executive Chairman also made reference to geopolitical tension in Europe, which have exacerbated the impact of the crisis. He also expressed his concern over the low level of economic growth and political integration within the European Union, as well as the fact that the monetary union process was never accompanied with a complete banking union.
Finally, he called for further structural reforms, as Europe’s current “ultra-expansionary” monetary policy has no more room for maneuver. In this regard, he reminded that in the current interest rate scenario, banks cannot cover the cost of capital.
IIF Spring Meeting photo
Download here BBVA Group Chairman Francisco González at the IIF Spring Meeting
In his presentation today, BBVA’s Global Executive Chairman also made reference to geopolitical tension within Europe, which have exacerbated the impact of the crisis. He also expressed his concern over the low level of economic growth and political integration within the European Union, as well as the fact that the monetary union process was never accompanied with a complete banking union.
Finally, he called for further structural reforms, as Europe’s current “ultra-expansionary” monetary policy has no more room for maneuver. In this regard, he reminded that in the current interest rate scenario, banks cannot cover the cost of capital.