Private Banker International (PBI): Can you please give an overview of BBVA Switzerland’s private banking business and the client base?
Alfonso Gomez (AG): We are the only bank in the BBVA Group devoted exclusively to global private banking. We have developed a world class private banking service.
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BBVA Switzerland’s HNW clients are located in more than ten countries. In most of the cases, the clients are from South America, Europe and Mexico.
We have a deep understanding of our clients’ needs. We understand who is our client, the client’s context and create opportunities for them.
Our business model combines 3 key topics. The first point is the customer relationship, which is very important, secondly technology; and thirdly, the value offering.
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By GlobalData(PBI): What is BBVA’s digital strategy?
AG: We have been very focused on digital strategy. Our digital strategy for the next couple of years is aimed at integrating the customer digital experience in which customers will be able to take the best financial decisions, based on high quality information available from new interactive tools.
We would like to play a pro-active role and collaborate with Switzerland’s most important universities and start-ups in identifying disruptive innovations.
In our view, products are commodities, so there is no value in products. The value is in the approach to customers.
PBI: Can you tell us about any particular innovation BBVA Group in Switzerland has launched?
AG: We recently launched a digital signature for clients. We were the first private bank in Switzerland to offer its clients a digital signature in the offshore market.
We have also developed new platforms for e-banking and launched apps with new functionalities, such as the consolidation of portfolios. It also offers some DIY solutions.
PBI: Is BBVA using artificial intelligence (AI)?
AG: This is something we are considering, but we are at a very early stage.
PBI: What potential does AI and machine learning have for private banking? What could it achieve?
AG: These are topics that our holding team are developing so there are limitations in talking about them. We have a talented data analytics team and we are doing a lot of projects, but in Switzerland, in particular, our strategy is based mostly on partnering with fintechs.
PBI: Please tell us about any new digital innovation projects BBVA is planning?
AG: We believe clients are switching the way they interact with banks and money – and service remains key. We are implementing new digital tools, such as click and trade offerings, notifications and using advances in data analytics.
In summary, I would say it’s about adding value for customers and using digital tools to provide great customer experience.
PBI: What is BBVA’s wealth benchmark to become a private banking customer in Switzerland?
AG: Since we are a part of a big group, we take into account many different circumstances about customers.
We have different approaches for different customers and I must stress that the amount of money a person has is not the criteria parameter. The relationship with the customer is key and we analyse the situation of each customer.
PBI: Does BBVA view itself as a private bank or wealth manager in Switzerland?
AG: We focus on both segments.
PBI: How is BBVA in Switzerland differentiating itself compared to that established incumbents?
AG: The Swiss market is highly competitive. But we believe our clients choose us for a number of reasons.
The first reason I would point out is the simplicity of interacting with us. We have a really robust platform and the solid reputation of BBVA is a really important point.
We are a niche player in Switzerland, but a clear strength is being part of a big financial group. We aim to expand the transformation of this old-fashioned industry through constant innovation.
PBI: How big is BBVA’s team in Switzerland?
AG: We have a great team and in total there are 120 employees.
PBI: What is your view on cryptocurrencies and is it something BBVA Group is planning to offer to clients?
AG: Cryptocurrencies is a very important topic right now in the market. We are constantly following the cryptocurrency market.
BBVA is very interested in blockchain and other similar technologies for their capacity to optimise specific processes.
As for Bitcoin and other cryptocurrencies, these are very risky assets -and it’s extremely difficult to make a forecast about their potential and as potential investments.
BBVA does not offer Bitcoin-relatedproducts and does not offer investment advice whether or not to buy cryptocurrencies. We are not recommending clients to invest in cryptocurrencies right now. However, we see a lot of value in blockchain technology
PBI: Is BBVA using blockchain technology?
AG: BBVA is very interested in blockchain for their capacity to optimise specific processes in the finance business and in other industries, as shown by the various pilots and proofs of concept BBVA Group has carried out Ripple and Wave.
PBI: How are BBVA’s preparations for GDPR progressing?
AG: It is clear that technology revolution requires a new regulation. BBVA is already tackling the implementation process for GDPR and working closely with the regulators. We will be compliant for the 25 May deadline. This kind of new regulation is an opportunity.
Apart from MiFID II, we are in the process of implementing FIDLEG and PRIIPs and also the common reporting standards are extremely important for the industry.
PBI: What is your outlook for the Swiss private banking and wealth management market in 2018?
AG: I am confident about the prospects of our sector in Switzerland.
Despite all the challenges we face, Switzerland remains a key player for international private banking services, leading the market share.
I see a positive trend in the industry, where banks have already adapted to new regulation and now they are thinking in the future, investing on customer experience and improving their value offerings.
In regards to the economy we expect a similar year of growth and continued gradual reduction of the central banks’ accommodative policies that should be supportive for the markets.
