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BBVA en México
Financial Heal the Is the Key to the Transformation of the Baking System
The digital transformation has revolutionised how consumers perceive their relationship with the financial system. For this reason, digitalisation raises the challenges and opportunities of banking to develop solutions that help people make better financial decisions that strengthen their short, medium, and long-term goals by using financial health as its main instrument.
In this context, the commitment of BBVA Mexico has been evident since nine years ago when the bank decided to become a disruptive financial institution based on technological innovation by understanding the long-term customer that embraced digital banking as well as the digital native behaviour that enquire, seek, connect and get what they want immediately.
The bank's distribution model has been evolving from physical infrastructure or traditional banking (composed of more than 1,700 branches and more than 14,000 ATMs throughout the Mexican territory) to a digital value proposition, in which products and services are made available one click away through the transactional portal or in the cell phone thru the BBVA Mx App.
The results are promising, and we acknowledge that we are following the right path by working day to day in delivering to customers and clients products and solutions that will help them to have an easier financial life. In addition, we are helping them to consolidate their financial legacy and wealth. In the first six months of 2023, the institution already has 29.2 million total clients, of which 75 percent (21 million) are digital.
At the same time, the total number of sales has risen to 27.5 million, and 74 percent (equivalent to 21 million) was made in digital channels. This amount is correlated to the growth in customer transactions; 3,100 million were achieved. 65 percent of them were digital (2,000 million). 72 percent of the increase is due to digital transformation.
What will be the next step as we face a high-speed changing environment in technology? It is known that more than digitisation is needed, the challenge now is even more significant as we need to find that territory where we need to be different, and we have to be pioneers by focusing on the financial health of our clients and consumers.
At BBVA México, we perceive sustainability beyond caring for the environment or social actions; we are convinced that the first piece of sustainability is in the relationship we establish with customers, which is achieved every time we interact with them, causing a benefit. In that sense, financial health is the key.
Data analysis is crucial to understanding customer behaviour because it lets us know their digital path: purchases, habits, transactionality, and the moments that mark their lives and define how they interact with their finances. Along with new technologies such as artificial intelligence, this data strengthens the bank's ability to personalise offers and place them at the right time so that customers are the ones who make the decision that best suits their needs and that the bank will accompany that decision.
Digital transformation is in BBVA Mexico's DNA, and nowadays, financial health is immersed in developing each product, service, and functionality as we encourage savings, investments, and wealth caring. The proposals on improving clients' financial health must be substantial; for example, customers who have a payroll at the bank receive an invitation to save an amount that allows them to meet unexpected expenses with Apartados. This spending pocket sets aside a specific amount of money to save. Currently, it has 4.3 million customers with 8.8 million Apartados.
The digital transformation has revolutionised how consumers perceive their relationship with the financial system
Inside the BBVA Mx App we have ‘Mi día a día’ a personal finance manager. In the first half of 2023, 16.1 million customers used this functionality to see their behaviour of income and expenses, which is reflected in an average of 2.35 interactions per customer, which means 75 percent more than the same period in 2022. 6.1 million Clients have used tools such as the interest rate simulator to adjust their spending limit and turn their cards off and on. Finally, there are over 513,000 clients with more than 563,000 investment funds, of which 73 percent were acquired through digital channels.
At BBVA Mexico, we understand that the sustainability of the financial business is in the relationship with our consumers and has to do with giving them better decisionmaking tools. Hence, financial health is the only way we will achieve it. The banks will survive the next transformation challenge because they will seek and grow this sustainable relationship, as each client will choose the banking institution capable of walking side by side, accompanying them in building a solid financial strategy.
