If there is one thing that characterizes banks, it is their capacity for adaptation. We could say that they rise to the occasion in difficult times, finding solutions that primarily benefit society. Consider, for example, the strong interrelation between credit institutions and growth and development. It is not merely a matter of financing under the best possible conditions. The innovative profile that characterizes banks is one of the catalysts that stimulates other agents to achieve greater economic and social prosperity.
The changes that Spanish banks have implemented over the past fifteen years are the best example of their capacity for transformation. They can be summarized in three words: cleanup, recapitalization, and restructuring; and in two milestones at the European level: the greatest consolidation of a banking sector, and leadership in digital transformation in the provision of financial services. Banks have strengthened and improved their governance, adapted to highly demanding regulation and supervision, and are fully committed to enabling society’s transition toward a more sustainable growth model from both social and climate perspectives. In recent years, they have found the path to strengthen their balance sheets, improve their efficiency and profitability in a complex environment of zero interest rates. All of this in a highly competitive environment that stimulates banks’ capacity for innovation and enhances their efficiency.
Technological advances have enabled the incorporation of new agents that, while not being banks, can provide financial services. This is positive for everyone, especially for the customer, provided that this competition develops on equal terms, which is not currently the case. Authorities must equip themselves with tools to adapt to this new technology-driven reality with the dual objective of continuing to protect customers and maintaining financial stability. Banks know their customers and are experts in protecting their resources and personal and financial data, aspects in which the major technology giants providing financial services still need to advance, for the benefit of consumers and society as a whole.
Crises are always unexpected. And the health crisis caused by the coronavirus is no exception to the rule. However, the strength and resilience of banks, consolidated in recent years, has placed them in a strong starting position to face it and play a key role in mitigating its economic impact on families and solvent businesses. As if it were a process of continuous assessment, banks are making adjustments to strengthen themselves in an uncertain context, within the global economic reconstruction strategy in which we are immersed. These adjustments are part of the framework of changes that must lead us to greater and more sustained growth. The sector’s commitment is clear to continue being part of the solution to the economic crisis, placing its resources objectively and prudently at the disposal of the productive economy.
The health crisis has accelerated the digital transformation already observed in society. It is the only positive aspect of a situation as painful and terrible as the pandemic. Spanish banks have guaranteed access to necessary financial services at all times and in any location, thanks to the investment effort in the provision of digital financial services carried out in recent years and the commitment and dedication of their employees. At this time, banks are prepared to continue strengthening financial inclusion through digital channels, the communication channel that customers increasingly demand, and to maintain in-person service for those who prefer to visit the branch network, one of the largest in Europe. Commercial agents, ATMs, and telephone banking are other solutions at the service of consumers. Because the priority of banking is to provide the best service to all customers, regardless of their degree of digitalization, and to help them move forward and realize their personal and professional projects. Now more than ever.
José Luis Martínez Campuzano, spokesperson for the Spanish Banking Association
