BBVA
INDUSTRY SURVEY
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Francisco Gonzalez, chairman of financial services
group BBVA: ‘Our future
competitors will not be
traditional banks but large
technology companies.’
CEOs are facing a “talent crunch”, and it’s
an issue keeping them awake at night.
landscape and identifying the strengths within the business that
would allow it to establish a leading position. The findings from
this year’s CEO survey provide some useful markers that will help
industry leaders in these vital deliberations.’
PwC reported on the emergence of four major themes for
the BCM sector:
Sustaining growth is challenging. More than 80% of BCM CEOs
see over-regulation and economic uncertainty as threats to growth.
Only 15% are planning to carry out a cross-border acquisition in the
coming year, despite the strong need to sustain revenues and bolster
return on equity.
Capitalising on global opportunities. South America, Asia and
Africa dominate the list of regions targeted for growth by the BCM
CEOs. Sixty percent of BCM CEOs see emerging markets as more
important for their company’s future than developed markets.
Market opening up to innovation. Innovation is clearly a key
aspect of the growth agenda for BCM CEOs, with 64% looking to
build up their capacity in this area. Digital transformation provides
an opportunity to engage more closely with customers. But it’s also
opening up the market to disruptive new entrants, though few CEOs
are concerned about the threat.
Concerns of talent shortages. More than 40% of BCM CEOs
believe skills shortages are a threat to growth and that it’s getting
harder to recruit and retain good people in their industry. The highpotential middle managers that will be crucial in taking the business
forward are in especially short supply.
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THE BANKER
Edition 2
The report was required to identify the external factor that had
the most impact on their company financially in the past year,
[the report states], ‘Nearly three-quarters of BCM CEOs cited the
ongoing sovereign debt crisis in Europe and two-thirds said that
the crisis had triggered changes to their strategy, risk management
or operational planning… More than half believe that the global
economy will get worse over the next 12 months, compared to less
than 20% who believe it will improve.’
Electronic banking was seen as a key growth area. ‘Digital
interaction offers smart banks the opportunity to engage more
closely with customers and increase wallet share,’ according to the
report. ‘Our research also indicates that digital banking is perceived
as providing high value and is an area for which customers across all
markets and segments would be prepared to pay. New technology
and production development is clearly a key aspect of the growth
agenda for BCM CEOs.’
At the same time, digital transformation could be highly
disruptive, allowing new entrants to break into the banking market,
pick off the most valuable revenue opportunities and seize control of
customer relationships. Several technology companies are looking
to make inroads into the banking market. Francisco González of
BBVA is mindful of the challenge. ‘Our future competitors will not
be traditional banks but large technology companies,’ he said. ■
For the full PwC 15th Annual Global CEO Survey,
see www.pwc.co.za.