In 2013 South America has continued to show strong activity and earnings. It has also maintained its risk quality indicators very stable. All this was possible thanks to the business plans implemented in the region. One example of these is the business plan being implemented to boost the generation of value in the area. Its main objectives are growth in activity, increased market share and improved service quality. In addition, the area has strengthened its commitment to the region with the launch of its 2013-2016 Strategic Plan, whose main aim is to turn BBVA into the first digital financial group in the region and the most preferred bank by customers. The Bank has announced an investment of USD 2.5 billion (around €1.9 billion), of which 40% will be allocated to technological projects and 60% to improving infrastructure and distribution networks. BBVA is investing in the expansion of its branch network, particularly in Colombia, Chile and Peru, and in the development of alternative distribution channels, such as mobile banking, online banking and the extension and renewal of the ATM network. Progress has also been made in changing the focus of how banking is carried out, shifting from product-centered management to a customer-centric approach. Lastly, a cross-cutting development plan is being undertaken in some businesses, such as payment channels, private banking, consumer finance and asset management.
The focus for 2014 and the following years will therefore be on implementing the Strategic Plan for 2013-2016. Other management priorities will be:
- In the field of innovation, each country has defined the strategic segments on which it will focus its business model, taking advantage of the different experiences within the Group and supported by a unique project management tool and a very simple methodology, project manager. The challenge for 2014 will now be the consolidation of this pioneering and innovative way of working.
- With respect to brand image, advertising and corporate social responsibility, work will continue on a coordinated and coherent strategy that is in line with the business model in each geographical area. In 2014 the image of a simple, innovative and flexible bank will continue to be strengthened, with alternative products, services and channels that can cover and meet the needs of customers and that have a positive impact on the societies where BBVA operates.
- Major progress has already been made in the commercial planning models of each country. Next year the review of the organizational models will be concluded and the commercial models will be strengthened to increase customer loyalty and retention. Progress will also be made to:
- Guarantee compliance with the objectives of the recently launched Strategic Plan in commercial planning.
- Ensure a process of business planning that is coordinated with all the geographical areas.
- Prioritize initiatives focused on customers/segments.
- Define key performance indicators (KPI) and simple metrics to assist in measuring the impact of the business on society.
- In terms of quality, there has been a shift from managing metrics to managing processes focused on customer experience, using an Integrated Quality Model. The challenge for 2014 will be to continue with the implementation and development of this model as defined in each country.
- In commercial intelligence, once the basic elements have been grounded in each geographical area, and the Commercial Trend Models, Proactive and Reactive Retention Models and Loyalty Models have been created, the aim is to set up an integrated plan for each country and boost the contribution of commercial intelligence to business generation.
