BBVA disloses EUR5.6bn technology investment
01 June 2007 | 6372 views | 0
Spanish banking group Banco Bilbao Vizcaya Argentaria (BBVA) is to invest EUR5.6 billion in technology over the next three years, as part of a new business transformation programme.
The group says EUR2.5bn of the overall technology spend relates to initatives arising from its global 'innovation and transformation' plan, which is expected to increase productivity by 15% and improve efficiency by 20%. BBVA says it will focus on back office operations and using technology to increase efficiency and productivity.
The bank also plans to oversee a 20% increase in the number of customers in its three main markets of Spain and Portugal, Mexico and South America.
Under the transformation plan BBVA says it will re-vamp 50% of its branches in Spain and Portugal. These new banking centres will also become distribution channels for "non-financial products" such as insurance and services for private customers and SMEs. Overall the bank says it is looking to derive 10% of its operating profit growth from these "non-financial products".
BBVA also plans to expand its the branch network in Mexico by 45 to 2010, and increase the number of ATMs it operates in the region from 4876 to 7500.
In South America the bank will expand its ATM network from 2000 units to 5600 and will open 240 new branches, bring the total number of branches in the region to 1600. The bank says it will also focus on targeting unbanked customers in the region.