BBVA’s Position on Emerging Digital Competitors
Eduardo Osuna, Vice President and General Director of BBVA Mexico, acknowledges the challenge posed by new digital players entering the financial sector. He emphasizes that without proper reaction, these competitors could erode BBVA’s market share in segments like consumer lending.
BBVA’s Current Standing
BBVA is currently the largest fintech in Mexico, boasting over 24 million digital customers and 70% of its sales conducted through these channels. Osuna stresses the need to maintain this momentum and continue innovating to deliver value to clients.
Potential Threats to BBVA’s Market Share
Osuna addresses concerns about losing market share in payroll products due to new entrants claiming to be banks to offer these services. He points out that BBVA already faces competition from four to five major players in the payroll sector.
Innovation as a Key to Staying Ahead
Osuna views the entry of new players as a challenge, pushing BBVA to innovate and enhance its capabilities. He highlights that fintechs typically enter with one or two products, while BBVA offers a comprehensive range of banking services.
“Regulation should protect the end-customer, not just the bank,” Osuna asserts. He emphasizes that BBVA welcomes competition, as it drives all players to improve products, customer service, and pricing.
BBVA’s Digital Strategy
Unlike some competitors, BBVA Mexico has chosen to strengthen its digital strategy within the existing institution rather than creating a separate digital bank. With nearly 33 million customers, over 24 million interact digitally at least once daily.
Osuna explains that both strategies—integrating digital channels into traditional banking and establishing separate digital banks—can be successful. He stresses the importance of understanding market conditions and executing strategies effectively.
BBVA’s Stance on Banorte’s Digital Bank Strategy
Osuna commends Banorte for recognizing the need to adjust its strategy, acknowledging that not all initial plans succeed. He views this as a courageous move, common to all banks when launching new products.
Key Questions and Answers
- Question: How does BBVA view the emergence of new digital players in the financial sector?
- Question: What is BBVA’s current market position?
- Question: How does BBVA plan to address potential threats from new entrants in specific market segments?
- Question: What is BBVA’s digital strategy?
- Question: How does BBVA view competition from new digital players?
- Question: What is BBVA’s opinion on Banorte’s decision to potentially sell its digital bank?
Answer: BBVA sees it as a challenge to maintain and enhance innovation, ensuring they continue delivering value to their clients.
Answer: BBVA is the largest fintech in Mexico, with over 24 million digital customers and 70% of sales through these channels.
Answer: BBVA intends to maintain its innovation pace and redefine how it delivers value to clients, ensuring they remain competitive.
Answer: BBVA has opted to strengthen its digital capabilities within the existing institution, rather than creating a separate digital bank.
Answer: BBVA welcomes competition, as it drives all players to improve products, customer service, and pricing.
Answer: BBVA’s Eduardo Osuna commends Banorte for recognizing the need to adjust its strategy, viewing it as a courageous move common to all banks when launching new products.
