Spanish banks, like those in the rest of the world, are subject to major challenges of all kinds, such as increasing profitability, adapting to a very demanding regulatory framework, and strengthening capital levels. However, it is the challenges arising from the transition toward a more sustainable economy and a greater presence of new technologies that will radically change the way banking is done and allow this sector to sustain its activity in the medium and long term. <\/p>\n
Sustainability is here to stay: anyone who sees this transformation as a passing fad will be mistaken. The central question is what the sustainability factor can contribute to banking entities. In my opinion, it provides two novel approaches. The first is that it reinforces the long-term vision of the banking business, and the second is a social and ethical approach, which already existed under the concept of Corporate Social Responsibility, but now has a deeper dimension. <\/p>\n
This new social and ethical approach requires a radical change in the culture and mindset of organizations. It requires prioritizing the balance of the medium and long term over short-term objectives; giving priority to transparency over any other consideration, to the collective interest over one’s own, and to relationships governed by dialogue and collaboration over self-sufficiency\u2014all under the general inspiration of creating wealth in a more sustainable way that can be distributed fairly. <\/p>\n
But this approach to banking activity will also offer entities new business opportunities and the possibility of carrying out significant changes in management. For example, they will have the opportunity to integrate risks derived from climate change into their activity or offer new ways of approaching and relating to clients. This is the case for SMEs, which will need support and financing to adapt to new environmental requirements. And for young people\u2014millennials<\/em> and post-millennials<\/em>\u2014who are very aware of the challenges of climate change and the need to move toward a fairer society. <\/p>\n Regarding new business opportunities, it should be noted that reducing CO2 emissions by 40% before 2030 will require annual investments in Europe of nearly 180 billion euros. The magnitude of these investments will require the involvement of the banking sector and the optimal functioning of capital markets. Therefore, it is to be expected that the new President of the European Commission, Ursula von der Leyen, will give a definitive push to the Banking Union and the Capital Markets Union since, without integrated financial markets, it will be difficult to raise the multi-billion dollar investments required by the ambitious goals of the Paris Agreement. <\/p>\n