![\"bbva-loans\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/BBVA-loans.jpg\")
<\/a><\/p>\nBBVA\u2019s Digital Strategy<\/strong><\/p>\n BBVA\u2019s chairman, Francisco Gonz\u00e1lez, described the window of opportunity that the banking sector has to shape the emerging financial technology (fintech) marketplace before both regulators and non-financial technology companies (e.g. Amazon, Google, Facebook) move into the space.[1]<\/a> He said that banks need to be \u201cknowledge-based information companies,\u201d and change needs to be not only technological, but also organizational and cultural.[2]<\/a><\/p>\n 1. Organizational Design<\/strong><\/p>\n In 2014, BBVA created a Digital Banking Division in the US by poaching talent from leading digital banking services.[3]<\/a> It created BBVA Innovation Centers and BBVAOpen4U.com to encourage innovators to connect their applications to BBVA\u2019s platform via APIs.[4]<\/a> BBVA also acquired US-based companies Simple and Spring Studio, which specialize in online banking and customer experience design, respectively. By acquiring specialists in these areas, BBVA can integrate their business models into its value chain and deliver a better customer experience.[5]<\/a> BBVA is also looking toward the future of increased cloud computing by partnering with Amazon Web Services (AWS) for its cloud infrastructure services, recognizing that AWS can provide better security, compliance, and data privacy for its consumers.[6]<\/a><\/p>\n 2. M Unlike many banks, whose mobile applications are simply abbreviated versions of services offered on their websites and brick-and-mortar locations, BBVA is using its mobile app to strengthen its relationship with consumers using existing income and expense data. The app is personalized for consumers, greeting them by name when they open the app and providing personalized financial offers based on their profiles and behavior patterns.[7]<\/a> Other data-driven features of the app include the ability to view and activate rewards on the go, biometric sign-in, and a bank branch and ATM locator, all making customers\u2019 lives easier.[8] <\/a><\/p>\n 3. Gamification Another digital innovation is the BBVA Hoops app, a basketball game where users can earn points, share their scores on social media, and learn more about BBVA. [9]<\/a> BBVA is the official bank of the NBA and is using the BBVA Hoops app to engage with basketball fans and a younger demographic. BBVA has also used beacon technology through the app to drive basketball fans to a physical booth to engage with BBVA customer service staff. [10]<\/a><\/p>\n \u00a0<\/strong><\/p>\n Keep on Banking<\/strong><\/p>\n While BBVA has demonstrated its commitment to the digital age, there are more steps that it can take to enhance its product offering and customer engagement.<\/p>\n 1. Integrate service offerings<\/strong><\/p>\n BBVA currently has a multitude of mobile applications specified for countries, services, games, and information. GooglePlay, alone, returns 29 apps related to BBVA, many of which do not overlap in functionality.[11]<\/a> BBVA should create a single application with all product offerings on a consolidated platform. This simplifies product use for consumers and creates a centralized database for BBVA where customer data can be synthesized for better engagement.<\/p>\n 2. Fintech Partnerships<\/strong><\/p>\n While BBVA has invested significantly in organic fintech product offerings, BBVA should leverage with other fintech startups to not only engage with its consumers, but also drive better consumer health outcomes. These startups lack BBVA\u2019s financial resources and ability to meet stringent regulatory requirements, but through partnership or acquisition, can help BBVA encourage customer savings (Digit), monitor spending habits (NerdWallet), and assess credit using alternative data (VisualDNA).<\/p>\n Today, BBVA has 16 million digital customers, [12]<\/a> a 21% increase from 14.8 million in 2015.[13]<\/a> By continuing to integrate digital strategies into its operating model, BBVA is demonstrating its commitment to continue serving these customers in a digital world.<\/p>\n <\/p>\n (791)<\/p>\n <\/p>\n [1]<\/a> \u201cFrancisco Gonz\u00e1lez shares BBVA’s digital transformation case with 性视界 Business School faculty,\u201d BBVA Website, https:\/\/www.bbva.com\/en\/news\/science-technology\/technologies\/francisco-gonzalez-shares-bbvas-digital-transformation-case-with-harvard-business-school-faculty-2\/<\/a>, accessed November 2016.<\/p>\n [2]<\/a> Ibid.<\/p>\n [3]<\/a> Penny Crosman, \u201cBBVA Poaches Top Digital Bankers from Capital One, SunTrust,\u201d American Banker<\/em>, May 13, 2014, http:\/\/www.americanbanker.com\/issues\/179_92\/bbva-poaches-top-digital-bankers-from-capital-one-suntrust-1067474-1.html<\/a>, accessed November 2016.<\/p>\n [4]<\/a> BBVAOpen4U Website, https:\/\/bbvaopen4u.com\/en<\/a>, accessed November 2016.<\/p>\n [5]<\/a> \u201cInnovation and technology: the digital transformation,\u201d BBVA Website, https:\/\/accionistaseinversores.bbva.com\/TLBB\/micros\/bbvain2015\/en\/performance-in-2015\/bbva-group\/innovation-and-technology-the-digital-transformation\/<\/a>, accessed November 2016.<\/p>\n [6]<\/a> Scott Thompson, \u201cAWS to accompany BBVA on digital journey,\u201d IBS Intelligence Newsletter, <\/em>October 21, 2016, https:\/\/ibsintelligence.com\/ibs-journal\/ibs-news\/aws-to-accompany-bbva-on-digital-journey\/<\/a>, accessed November 2016.<\/p>\n [7]<\/a> Michael Barris, \u201cBBVA Compass seeks to shorten customer journey with new banking app,\u201d Mobile Commerce Daily, <\/em>June 18, 2015, http:\/\/www.mobilecommercedaily.com\/bbva-compass-seeks-to-shorten-customer-journey-with-new-banking-app<\/a>, accessed November 2016.<\/p>\n [8]<\/a> Mobile Banking, BBVA Website, https:\/\/www.bbvacompass.com\/mobile-banking\/<\/a>, accessed November 2016.<\/p>\n [9]<\/a> Michael Barris, \u201cBBVA Compass hopes to net new clients via basketball game app,\u201d Mobile Commerce Daily, <\/em>May 22, 2015, http:\/\/www.mobilemarketer.com\/cms\/news\/gaming\/20499.html<\/a>, accessed November 2016.<\/p>\n [10]<\/a> Ibid.<\/p>\n [11]<\/a> GooglePlay \u201cBBVA\u201d search results, https:\/\/play.google.com\/store\/apps\/developer?id=BBVA&hl=en<\/a>, accessed November 2016.<\/p>\n [12]<\/a> \u201cDigitization, a priority for growth,\u201d BBVA Website, September 22, 2016, https:\/\/www.bbva.com\/en\/us\/news\/science-technology\/technologies\/internet\/digitization-priority-growth\/<\/a>, accessed November 2016.<\/p>\n [13]<\/a> \u201cInnovation and technology: the digital transformation,\u201d BBVA Website, https:\/\/accionistaseinversores.bbva.com\/TLBB\/micros\/bbvain2015\/en\/performance-in-2015\/bbva-group\/innovation-and-technology-the-digital-transformation\/<\/a>, accessed November 2016.<\/p>\n","protected":false},"excerpt":{"rendered":" BBVA Compass enhances its digital capabilities to engage with customers in innovative ways<\/p>\n","protected":false},"author":2316,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","categories":[385,2573,259],"class_list":["post-18236","hck-submission","type-hck-submission","status-publish","hentry","category-banking","category-bbva","category-fintech"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"\n<\/a>obile Banking<\/strong><\/p>\n<\/a><\/strong><\/p>\n