When it comes to banks, it seems anything goes. It is a sad reality that contempt and insults from some are becoming commonplace, reflecting a lack of serious knowledge and the exaggeration of stereotypes toward a sector that is proving to be key to overcoming the economic and social devastation of COVID and that is always fundamental to development.
Banks are immersed in a restructuring and transformation process driven by changes in their customers’ habits, who are increasingly digital, by a zero interest rate environment, and the growing competition from technology operators who are not burdened by demanding banking regulation and the commitment to offer a universal public service as the banking sector does. In a context such as the current one, it is clear how necessary banks are for families and businesses to move forward and make their projects a reality—in short, for prosperity and growth.
As a criticism, queues outside bank branches are cited as an indication of poor service, ignoring that these COVID times have made waiting commonplace as a consequence of necessary social distancing and other precautionary measures in enclosed spaces. Naturally, we must all strive to continue offering the best service to an increasingly demanding customer. This is the priority of banks, which complement the services of their branches through telephone, mobile, and digital banking, as well as with commercial agents. All of this explains why in Spain, unlike other European countries, financial inclusion is total. Criticism toward banks for branch and employment adjustments not only ignores all these adaptation efforts to consumer habits and the environment—something essential for survival—but also holds banks responsible for the devastation caused by depopulation in emptied Spain, where schools, doctors, health centers, pharmacies, and public transportation are lacking, among many other essential services.
The profitability of banks is a constant concern of the authorities, who ask them for adjustments and mergers, as well as for the prices of financial services to reflect their total cost. Each bank makes its decisions on the prices of its products and services based on many parameters and defines its commercial strategy at each moment. In the Spanish banking sector there is strong competition, which benefits the consumer, who thus has many options to choose products and services from and, ultimately, to decide which institution or institutions they want to be a customer of.
In recent years, banks have made a great effort to improve the public perception of the sector, which was severely damaged in the crisis of some savings banks, when banks and the rest of the savings banks that were not affected had to assume a significant part of the financial cost to refloat the damaged institutions. Banks have strengthened their solvency and have achieved important advances in their governance and in their relationship with their customers. The Spanish economy and society need healthy and strong banks that perform their role well—such an important role—of financing families and businesses.
José Luis Martínez Campuzano, Spokesperson for the Spanish Banking Association
