Alejandra Kindelán visited the Plaza del Cantón in Betanzos this week. She participated in the Red Cross ‘Enredando’ campaign, through which the organization seeks to familiarize the population with digital services.
Why are these types of initiatives so important for bank customers?
Banking has many priorities, but at this moment, the sensitivity we have toward the elderly and the need for them to also be part of this unstoppable digitalization is important. In this regard, the Red Cross is our best ally because they reach even the smallest villages with their ‘Enredando’ van and are able to offer advice and help to seniors who want to engage with digital tools. From there, they can play games, connect with their families, learn how to book medical appointments, or even use Bizum to make a bank transfer from home, making their lives easier. Digitalization is inclusion, but for that to happen, we must ensure that no one is left behind. We have provided simulators to teach how to operate an ATM or use banking apps, along with very basic security concepts, which are fundamental.
Can this not be brought into the branches to reach a wider audience?
Spanish banking is highly commercial and has a very extensive reach. We seek a balance between physical and digital presence because digitalization is unstoppable, and we must help everyone who wishes to use digital resources. We have 82,000 physical touchpoints with customers, whether through branches, mobile banks, or ATMs. While it is true that there have been branch closures, Spain still has the second densest network of bank branches and the third densest network of ATMs in Europe […] Two years ago, we established a roadmap with the Ministry of Economy to ensure a physical presence in all municipalities with more than 500 inhabitants. There were 293 towns that had no services at all. We are completing the plan, with 96% implementation, featuring solutions already installed or in the process of being installed.
How widespread are the training programs? Because elderly people continue to face many challenges with digital banking…
Last year, 280,000 people participated in digital capacity training programs through the AEB Foundation. It is a step-by-step process. After the pandemic, seniors told us: “You don’t have enough opening hours for us.” We had to commit to extended office hours for the elderly—specifically for over-the-counter services—because they go to withdraw their money through a physical teller, not an automated one. Currently, 82% of our branches already have these over-the-counter service hours. Furthermore, when they call bank call centers and provide their ID number, the system recognizes they are over 65, so they are transferred to a human rather than a robot […] There are already 27 million Bizum users, and its use is growing in the 55 to 70 age range. Not everyone wants to use it, which is also perfectly valid. That is why we must maintain cash.
Will it continue to exist?
Absolutely. We have an agreement with the Postal Service (Correos) to deliver cash through their mail carriers and offices to all populations—in some cases, directly to their homes.
Since the crisis, branches have closed and staff numbers have been reduced. Half of the municipalities no longer have a physical office. Could this trend be accentuated by bank mergers?
[She clarifies that she will not discuss mergers or ongoing bank takeovers]. It is true that 12 years ago we experienced a very significant crisis in the sector, with entities that were highly politicized and lacked a sustainable business model. The reality was likely that there was overcapacity […] Now we have a general awareness that we must complement the presence that we might have lost in some towns. Here in Galicia, we have 4,559 physical touchpoints with people across different municipalities, with entities that are absolutely dedicated.
Will the branch network be reduced in the coming years?
Well, as I mentioned, there are different commercial strategies, but we have a very broad level of coverage.
How many free (basic) accounts does the banking sector maintain for vulnerable people?
We do not have specific data. The sector has the obligation and commitment to provide them; however, by law, they require certain criteria that individuals do not always meet, such as proving the source of funds or providing proper identification.
Regarding court rulings questioning the marketing of ICO loans, Minister Cuerpo pointed toward the banks. Have mistakes been made?
I believe it has been a resounding success. 140 billion euros in credit were put into circulation for companies. Many of them would have had to close, and they survived thanks to this support. There may be some anecdotal cases, but it has not been a structural problem, rather isolated errors.
The Minister also suggested linking the bank tax to the interest rate cycle. Have you assessed the impact?
The idea of proposing a permanent tax on banks at this time—when circumstances have changed, with rates falling, geopolitical uncertainty, and new transformation needs—is something we honestly do not understand. No other country in the eurozone is proposing this.
Galicia has enormous investment needs. Is bank credit flowing?
We are in a good moment of financial strength and are mindful of our role in economic and social progress. In the first part of the year, we have seen an increase in mortgages and loans. Credit is flowing in all areas and will continue to do so. The economy is in a very good period of growth, which is a luxury compared to other countries.
Will the Euribor stop at 3%?
The clear expectation is that it will continue to fall. It is true, however, that they have not provided us with a clear schedule.
Will we see 1% mortgages again?
Entities have freedom in their commercial practices.
It has emerged that the Bank of Spain detected undervalued risks in the banks’ mortgage portfolios. Is this the case?
This is an issue regarding appraisal companies which, we must remember, customers are free to choose. These appraisal companies are supervised by the Bank of Spain. Banks are risk-management machines and they do it very well in Spain. In fact, the delinquency rate is minimal and very well contained.
The European Central Bank says it is necessary to create pan-European banks. Will we eventually see them?
Today, the reality is that 75% of corporate financing comes from our sector. Therefore, European banks must be up to the task of what our economy needs […] We need to break down barriers and have a truly integrated framework that allows banks to have scale and be more competitive. Before reaching that point, we must complete the Banking Union, have a single deposit guarantee fund, and harmonize much of the regulation… the ground must be prepared.
With the rise in interest rates, Spanish banks achieved historic profits. Why did it take so long here to increase the remuneration on deposits?
It is true that deposit remuneration took time to rise, but today we already have rates for 1 and 2-year deposits that are above the European average. In Spain, we had more access to European Central Bank funds and had to absorb that liquidity. Each entity has its own commercial practices. The other side of the coin is credit, which is among the cheapest in Europe. If we were slower to remunerate deposits, we were also slower to pass the rate hike onto loans. We have banks that provide credit under very competitive conditions.
Can those profits also be explained by the increase in commissions for less profitable customers?
Bank results have risen due to interest rates. We have a banking system very closely linked to the productive fabric that responds very quickly to any movement. We must also explain that one-third goes to paying taxes, one-third to paying dividends, and one-third to generating capital to continue lending.
What is the bank charging for when it applies a maintenance fee for an account or card?
The obligation is to reflect actual services or actual costs: an IT system in which the bank must continuously invest, the cybersecurity system that gives you a very clear guarantee that your money is safe, it is charging for efficiency… we cannot subsidize our services.
Interview conducted by C. Porteiro
