Banks are accustomed to making the most of every scenario. They have proven this time and again in the past. The opportunities they consistently find ultimately benefit their customers and society.
For some time now, banks have faced enormous challenges, such as those arising from incessant and complex regulation, the inevitable and rapid digitalization demanded by their customers, and the difficulties inherent in a scenario of zero and negative interest rates. Their capacity for adaptation has allowed them to coexist with competition from other entities under unequal regulatory and supervisory conditions. In the case of Spanish banking, all of this has been compatible with a progressive improvement in profitability, although it is still far from being considered acceptable from the perspective of medium- and long-term banking stability.
Efficiency is the key. Digitalization helps improve it, though it is not everything. Having healthier balance sheets, greater regulatory certainty, and being able to compete on equal terms in leveraging new technologies will undoubtedly help banks define a strategy that allows them to maximize their intrinsic capacity for adaptation. Banks have strengthened their balance sheets since the crisis and have become more resilient and efficient. For the authorities, banks serve as a bulwark against potential excesses in financial markets amid prolonged, very loose financial conditions and under rules that are far from the high standards met by banks.
The future of banking is to continue financing the future of society. This involves harnessing the potential of new technologies to reinforce the commitment to sustainable growth. The banking of the future will continue to guarantee the level of security and protection of customers’ personal and financial data, as it has done until now. Customer trust and the reliability of financial services and products are fundamental for banks.
José Luis Martínez Campuzano, spokesperson for the Spanish Banking Association
