July 25, 2024 | 2:46

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BBVA announces plans to open a digital bank in Germany in 2025

BBVA announces plans to open a digital bank in Germany in 2025

Jeickson Sulbaran

June 20, 2024 | 12:02 pm

BBVA launches a new digital banking initiative in Germany by 2025, replicating its success in Italy, with optimistic projections for the German market

BBVA plans to expand in Germany after success in Italy, with a goal of 500.000 clients. Throughout 2025, BBVA will launch a digital banking model in Germany, following the successful experience it has had in Italy, where it has already reached 500.000 customers. This initiative was announced by Peio Belausteguigoitia, the 'country manager' for the Spanish State of the bank, during the seminar of the Association of Economic Information Journalists (APIE) and the Menéndez Pelayo International University (UIMP).

Belausteguigoitia highlighted that BBVA aspires to replicate the "success model" thatthey have implemented in Italy, where they landed in October 2021. Germany, due to its size and market potential, offers an opportunity to launch a "business at scale", a key concept in today's digital banking. Scale is fundamental when deciding on investments, the executive stressed.

BBVA aims to replicate its Italian success in the competitive German market

In 2022, BBVA attracted 220.000 clients in Italy, and at the beginning of this year they already reached 500.000. This growth prompted the decision to explore other European markets.. At the end of 2023, Onur Genç, CEO of BBVA, mentioned that they were studying the possibility of expanding to one or two more European countries, thanks to the positive performance in Italy.

BBVA announces plans to open a digital bank in Germany in 2025

BBVA has also shown strong growth in the SME segment, attracting 69.000 new companies during 2023. The objective for 2024 is to increase this figure by 16%, aiming to attract 80.000 new SMEs. Belausteguigoitia was optimistic, stating that the data from the first months of the year indicate that they will be able to achieve this objective.

On the other hand, Belausteguigoitia ruled out the possibility of buying another entity if the public acquisition offer (OPA) of Banco Sabadell does not prosper. If the merger is not achieved, BBVA would continue with its organic growth strategy, which has shown "excellent results."

The country manager of BBVA Spain also highlighted the complementarity of BBVA and Sabadell, especially in the SME segment, where they seek to grow. Restructuring costs would focus less on job and branch cuts and more on general and technology savings.

Regarding the delegation of votes of minority shareholders, Belausteguigoitia indicated that the process began on June 10 and will last three weeks, a common operation for BBVA. So far, the delegation rates are positive.

Regarding the impact of the takeover bid on commercial operations, Belausteguigoitia stated that they have not noticed changes and that the commercial objectives are being met. He pointed out that the evolution of stock market prices is an indicator of the likely success of the takeover bid, highlighting that a narrow premium indicates a greater probability of success.

BBVA's commitment to Germany represents a significant strategic step, taking advantage of the experience accumulated in Italy. This move underscores the importance of digitalization and scale in modern banking, with BBVA positioning itself as a leader in adopting these trends.

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