At the start of 2013, Commercial Banking was divided into two areas:
1. The Commercial Network, which includes BBVA’s whole retail distribution network in Mexico, apart from the private banking and wealth management segments, for which the Bank has 88 specialized branches across the whole country. The division of the commercial network has boosted the activity of the branches through a customer-centric model, whose main focus is increased loyalty and specialized management by customer segment.
2. The Commercial Development and Payment Channels unit, whose main objectives are to design and develop banking products for each segment, and enhance brand and customer insight.
This business unit serves BBVA Bancomer’s retail customer base in a segmented and specialized manner. This retail customer base represents approximately 80% of all the Bank’s customers, including the private and wealth management, individual, banking and express segments, as well as small and medium-sized enterprises (SMEs).
At the close of 2013, Commercial Banking managed 49.5% of the total performing loans in the area, with a balance of €19,403m, 6.5% more than on the same date the previous year, while customer deposits under management amounted to €39,409m, equivalent to a year-on-year increase of 7.9%.
A total of 240 branches were renovated over the year, amounting to 13% of the branch network. This renovation aims to change the format of the traditional branch to include specialized spaces and staff for each customer segment. In addition, the self-service areas are being extended, with the installation of “practicajas”, cash recycling machines and ATMs that boost the use of digital channels to improve the handling of traffic in branches.
The products and services launched during the year include the following:
- Significant initiatives have been launched for private banking and wealth management customers. More diversified investment options are being offered for this segment, including more sophisticated products, such as structured bills. There has also been innovation in the service model to provide comprehensive solutions that offer not only diverse investment alternatives, but also pre-approved loans.
- Personal banking already has around 1,395 personal bankers who provide a specialized service for this segment. The new distribution channels have allowed the pre-approved loan scheme to be boosted for these customers as part of the new service model.
- For the express segment (customers with significant current and savings accounts, but a low bundled level), BBVA in Mexico has focused on boosting the use of digital channels such as the “Cuenta Express” account, the bank’s website (Bancomer.com), the cellphone banking platform (Bancomer Móvil) and banking operations through banking correspondents, which numbered 24,013 points of sale at the close of 2013. The aim of all the above is to contribute to reduce the traffic in branches and improve service quality and efficiency.
- For the small business segment, the bank has launched the new “Red PyME” (SME Network), which has extended the specialized business centers from 14 to 91. They now cover the whole of Mexico and serve 100% of customers in this segment. The aim is to provide a multi-product range which includes loans, fund gathering, collection solutions, online banking and insurance, and which can increase the loyalty and profitability of the segment. The new strategy for SMEs will also be focused on strategic sectors such as entrepreneurs, agrobusiness and construction companies, with products tailored to their needs.
