In recent years, the emergence of new technologies has been changing the way Spaniards buy and pay for their purchases. In your opinion, what have been the main changes?
Consumers are increasingly opting for digital payments, via mobile or the internet, over cash payments, due to the ease and security they offer, but also their immediacy. Spain’s payment ecosystem is one of the most advanced in the world.
Spain remains a cash-based country, as reflected in some reports and data from the Bank of Spain, which indicate that cash withdrawals from ATMs increased by 8.7% in 2017. According to the association’s data, will cash continue to play this significant role or will it lose ground to electronic means?
Cash withdrawals from ATMs grew by 3.55% in 2017, while card payments increased by 8.7%. Little by little, cash is losing importance compared to other payment methods provided by banks, according to data from the Bank of Spain. However, it will be the customer who determines the weight each payment system will have in the future.
Compared to cash, which payment method is most common among Spanish consumers? (Card payment, transfer, checks, mobile payment, etc.)
Bank transfers account for 73% of the value of non-cash payments, ahead of direct debits (21%). In terms of the number of operations, 44% are direct debits, 39% are card payments, and 16% are transfers, according to Bank of Spain data.
The digital transformation of the banking sector is driving innovation to meet new customer demands. What role has the banking industry played in recent years? What is the primary innovation in payment methods developed by the banking sector?
Banks are the engine of financial innovation in Spain. They are much more advanced than their European competitors in providing services with greater added value to their customers. An example is Bizum, the instant mobile payment system they have created. Spanish banks have also been among the first to offer international instant transfer services.
Security and ease of use are among the most valued aspects by users when making payments. How is banking addressing this demand?
Security is in the DNA of banking activity, which relies on mutual trust between the institution and its client. Security in digital operations has always been and will continue to be a priority for banks.
The new European Union Payment Services Directive 2 (PSD2) came into force this year to promote innovation and transparency in digital payments. What impact will it have on the market? And on the banking sector?
This directive implies greater transparency and competition in the payment ecosystem. And it undoubtedly opens up many opportunities for entities, always with the customer as the ultimate beneficiary, but it does not establish a level playing field for all players, as it allows technology companies to access bank data, but not vice versa.
The latest technological developments are giving way to new payment systems (wearables, QR code payments, eWallet, or cryptocurrencies). Looking to the future, which system will have the best chance of prevailing over the rest?
The banks’ policy is to offer their customers all possible payment options, anticipating their wishes and needs whenever technology allows. But it will be the customer’s experience that determines which payment method prevails over the rest in the future.
Technology and new regulations are impacting the business model of banks. What changes are expected? What will the new bank be like?
It is difficult to anticipate what the bank of the future will be like. But, without a doubt, banking will continue to effectively fulfill its mission: to provide the necessary financing to families and businesses so that they can realize their projects and thus generate prosperity and boost economic growth.
