Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) (BBVA) has selected Accenture's (NYSE:ACN) Alnova Financial Solutions technology platform to help support the aggressive technology transformation of its U.S. banking franchise.
The agreement with Accenture to deploy the new core banking solution will position BBVA's U.S. banking subsidiary - BBVA Compass - as one of the first major U.S. banks with real-time processing capabilities, allowing immediate posting of deposits and loan payments for increased efficiencies. The new core technology platform will also improve product time-to-market allowing the bank to quickly adapt to evolving customer preferences while at the same time proactively addressing changing regulations.
"In this new banking environment, having an efficient and highly flexible technology system is critical to outperforming the competition and meeting new regulatory requirements," said Manolo Sanchez, BBVA U.S. Country Manager and president and CEO of BBVA Compass. "By bringing this powerful and flexible technology to the U.S., we can increase our focus on the rapidly changing needs of our customers, provide them with more personalized and innovative services, and increase the efficiency with which we deliver our products and services to market. This investment represents a significant milestone in the implementation of the BBVA universal banking model in the U.S. and embodies our belief that technology will play an important role in creating a more transparent and efficient banking system."
Accenture's Alnova Financial Solutions, which BBVA currently uses in nine other countries, will support BBVA Compass' operations across Texas, New Mexico, Florida, Colorado, California, Arizona and Alabama. It is designed to improve the bank's cross-selling and customer retention, increase efficiencies and further align the bank's global operations by integrating its U.S. banking network into a common IT platform. The solution will deliver real-time bank processing capabilities and support increased transaction volumes for BBVA Compass while streamlining and enhancing the bank's risk management functions.
"The U.S. banking market requires strong service differentiation and the capacity to quickly and efficiently adapt to changing customer demands," said Juan Pedro Moreno, managing director of Accenture Core Banking Services. "By expanding the Alnova core banking strategy into the U.S. market, BBVA Compass is set to raise the bar on American bank customer service and operating efficiencies. We are pleased to support them in this strategy."
Core banking systems are sophisticated technology applications that support banks' primary services - from deposit gathering, lending and mortgages to checking, savings, ATM and credit card services and online and mobile banking. They also support a wide range of regulatory reporting and compliance functions for banks.
"BBVA has long recognized the importance of a truly customer-centric business model and understands the key role technology plays," said Colin Davies, managing director, Accenture Software. "Alnova will help BBVA offer its customers a seamless banking experience and help BBVA quickly and efficiently adapt to the changing requirements of the market, including regulatory requirements."
"BBVA has chosen a system it knows well from its many global deployments," said Bart Narter, senior vice president, Celent. "Alnova brings true real time transactions, a product-factory, and a modern architecture with a level of flexibility that simply can't be offered through parameter setting. Accenture offers deep knowledge of the U.S. banking industry and experience in large U.S. core banking migrations. Accenture's experience will serve BBVA well as it goes through the complex process of a migration."
Accenture Core Banking Services, a business service within Accenture's Financial Services operating group, has helped design and implement core banking systems for more than 200 institutions worldwide. Alnova Financial Solutions, part of Accenture Software, Accenture's dedicated software business, is a leading core banking solution with more than 100 clients in more than 20 countries, including many of the world's largest and most successful financial institutions.
Recognized for its breadth of functionality, the Alnova solution supports real-time processing, integrated channel delivery and customer relationship management. Accenture's agreement with BBVA Compass marks the debut of Alnova in the North American banking market. Since 2005, Accenture has helped most of the top 25 banks in North America implement core banking and lending solutions.