Those who are unable to adjust their pace to the rhythm set by the ecosystem ultimately disappear. Adapting to the environment is essential for the survival of all species. The same applies to banking, which operates in a highly complex and constantly changing environment shaped by monetary policy, the economic outlook, new technology competitors and now, in particular, the health crisis caused by COVID, which has accelerated trends that were already taking hold. Innovation and environmental awareness, which entered the scene some time ago, are now taking center stage. No one doubts that society is increasingly digital—much more so than it would have been without experiencing a lockdown and without having to continue enduring social distancing measures. This also applies to banking customers. The current restructuring of bank branches is a response to all these changes, as well as to the efforts of institutions to maintain the quality of a service that must be reasonably profitable to survive. The capacity for adaptation and innovation is ingrained in the DNA of banks, as is their commitment to universal service, one of their main distinguishing features compared to new technological competitors that offer banking services but only cater to consumers accustomed to smartphones and online life. Although their numbers are decreasing, many people still prefer to operate offline and visit branches in person. Here, they can do so. Spain remains one of the countries with the most bank branches per inhabitant worldwide.
Since 2009, the sector has been reducing its excess capacity following the strong expansion recorded during the real-estate boom years, which has resulted in declines in both the number of branches and jobs. Even so, in Spain there is one branch for every 1,783 inhabitants, compared with the European average of one for every 5,000. Spanish banking, characterised by a model of close customer relationships and small branches, continues to adapt to consumers’ needs, offering them financial products and services virtually 24 hours a day and anywhere, through the device most of us always have at hand. Sales agents and mobile branches complement the range of options available to customers to connect with their bank.
According to the latest 2019 survey on the use of digital technologies by Spain’s National Statistics Institute (INE), 93.7% of the population aged 16 to 74 uses the internet and more than 82% does so daily. More than 80% have some type of computer at home and almost everyone has a mobile phone. Age is not a barrier to benefiting from the advantages of digitalisation: 90% of the population aged 55 to 65 uses the internet, a figure that falls to 70% for the 65 to 74 age group. All these figures have probably increased as a result of the pandemic, although it remains to be seen whether many of these changes will endure once we have overcome the virus.
Connectivity has become a priority for the authorities to lay the foundations for economic reconstruction after the pandemic, as the Government acknowledges in its recent “Plan for Connectivity and Digital Infrastructures for Society, the Economy and Territories”, which seeks to contribute to territorial cohesion, drive economic growth, support the digital transformation of economic activities, and facilitate the population’s remote access to essential services. Digitalisation and sustainability are the two pillars on which European funds will rest. Specifically, digitalisation—which will receive one third of those funds—is seen as the solution for rural areas with dispersed and increasingly ageing populations. That is why an internet connection is key to revitalising these areas and facilitating communication and access to private and public services, which requires improving the population’s skills in using digital tools.
Digital penetration in society has taken a giant leap during the pandemic. Many people have discovered the enormous advantages of digitalisation for accessing services easily and quickly, staying informed and, especially, communicating. Numerous companies have adopted automated solutions and embraced remote working—tools that are now part of the new normal in relationships with customers and employees. All of this must be approached with the necessary prudence and responsibility in light of the risks the internet entails in terms of security and data protection.
Since the start of the pandemic, banks have been ensuring access to financial services through all available means, even as mobile and online communication has become customers’ preferred option at this time compared with traditional channels such as physical branches and ATMs. Everything has functioned normally. The dizzying speed of changes in society’s habits—such as, for example, how people pay for purchases—makes many data points obsolete as soon as they are published. This is the case with the latest European Central Bank study, from 2019, which says that almost half of payments by value are made in cash. A more recent Mastercard study, however, anticipates that more than 80% of companies will favour mobile and digital payments in the future.
The health crisis has brought out the best in a sector that has mobilised its human and financial resources to ensure the proper provision of financial products and services at all times—an achievement underpinned by its firm commitment to technology for years—and that has redoubled efforts to minimise the impact of the pandemic on families and businesses. Spanish banks are now a benchmark in Europe for the effectiveness of the measures adopted, such as mortgage and consumer credit moratoria or advances on unemployment benefits and pensions, as well as for the guarantees and security they offer when providing their digital services. Their challenge now is to put their capabilities at the service of the necessary economic recovery after the pandemic, delivering the best service to their customers and to society as a whole.
José Luis Martínez Campuzano, spokesperson for the Spanish Banking Association
