Four years ago, the major banks chose Jos\u00e9 Mar\u00eda Rold\u00e1n to represent their interests from the Spanish Banking Association (AEB) at a time when the sector\u2019s reputation among the public was at a very low point and profitability was meagre. \u201cThings have been more complex than I would have thought,\u201d he admits after being re-elected for another four years, a period in which institutions face major challenges despite the economy being in a favourable phase of the cycle. <\/p>\n
\u2014Is it a sustainable recovery?<\/strong><\/p>\n \u2014It is consistent: it is creating jobs very strongly, perhaps not of the quality we would like, and we are growing without generating imbalances. It is healthy growth, but it is not enough in the long term. We have to be ambitious and consider what structural reforms we can implement to improve it. <\/p>\n \u2014Is there a problem of low wages?<\/strong><\/p>\n \u2014The recovery is important, but it seems to be leaving segments of society behind, either because they cannot access employment or because that employment is not of the quality it was before the crisis. It is not a Spanish phenomenon; it is global, it affects young people more, and it is a reflection we must make. <\/p>\n \u2014And the pay gap? Is banking still a man\u2019s world? <\/strong><\/p>\n \u2014It is not a problem exclusive to banking, but to society, and we must take it as seriously as possible. It is unacceptable for there to be discrimination based on sex or any reason other than effort, training and ability. In banking, the issue is in management positions associated with motherhood. When that happens, women miss the train of their professional career. We must study what can be done to remedy it. <\/p>\n \u2014Could banking suffer a data theft like Facebook?<\/strong><\/p>\n \u2014We protect customer information very well. For example, it is not widely known that we do not store customers\u2019 passwords for accessing their services. They are perfectly protected because there is no place someone can break in, smash the glass and take them; there is an encryption system that prevents it. It is a clear example of the seriousness with which we take the need to protect our customers\u2019 data. This is how we have done it historically. <\/p>\n \u2014Would customers pay the cost of a tax on banks to fund pensions, as proposed by the PSOE?<\/strong><\/p>\n \u2014The banking sector is not the main driver of this problem, which is structural and requires agreed solutions. We will have to contribute to its solution, but there is no reason why the banking sector should have to make a greater effort than other sectors. <\/p>\n \u2014Has banking regained customers\u2019 trust?<\/strong><\/p>\n \u2014There have been times when the sector\u2019s image has suffered, but we have always had trust. Customers must understand that relationships with them are medium- and long-term; this is not a sector that tries to make short-term gains. <\/p>\n \u2014But mortgages are still causing an enormous amount of litigation.<\/strong><\/p>\n \u2014We are probably seeing the final stages of that litigation; there are no major issues left.<\/p>\n \u2014What must banks do to regain 10% profitability and improve their stock market valuation?<\/strong><\/p>\n \u2014There are things that depend on banks, such as providing better customer service, controlling costs and carrying out the digital transformation. But the normalisation of interest rates, which will help, depends on central banks. It seems we are moving in that direction, but it will be slower than expected and, moreover, the new rates will be lower than before the crisis. <\/p>\n \u2014Will there be further network adjustments?<\/strong><\/p>\n \u2014The decline in employee numbers is slowing, but as for branch closures, it cannot be ruled out that they will continue, especially given the digital transformation process.<\/p>\n \u2014And are mergers a way to improve profitability?<\/strong><\/p>\n \u2014They are one of the solutions, not the only one, but indeed this industry has increasing returns to scale and therefore size helps. That does not mean there cannot be specialised institutions\u2014small, local, and mid-sized. <\/p>\n \u2014Why are there none at European level?<\/strong><\/p>\n \u2014Because we are in a banking union in law, but not de facto. Supervisors still put obstacles in the way of deposits in Belgium being used to finance SMEs in Italy. We have made a lot of progress, but there are still pockets of liquidity and solvency trapped within the borders of member states. There are local regulations and actions that do not allow those funds to be moved to countries where profitability is higher. If that improves, we will see those mergers. <\/p>\n \u2014You say banks could cooperate in rural areas to avoid possible financial exclusion resulting from that adjustment. How would they do it?<\/strong><\/p>\n \u2014Looking at experience in countries with remote-area challenges such as Canada and the U.S., there are cooperation mechanisms between banks that make it possible to provide these areas with financial services while not incurring unsustainable costs: mobile branches, multi-bank ATMs, etc…<\/p>\n