Before starting, it is important advancement to differentiate between traditional digitalized banking , such as the virtual offices of physical banks, and online banks , those that do not have or have very few branches.
Banks have been undergoing a complete digital transformation for several years now. Between 2009 and 2015, more than 13,000 advancement branches were closed in Spain. Today, there are less than 30,000 branches spread across the country.
This digitalization of banking is driven by the digital transformation of other sectors, mainly commercial, and the advancement of new technologies in electronic devices: smartphones, smartwatches or tablets , among many others.
The advantages over traditional banking are immense
But how has it been able to gain so much ground on traditional banking in such a short time? Low or zero commissions to customers have a lot to do with it. However, . Among them, two stand out in particular:
- The client can carry out all operations through a digital device at any time of day, every day, without being tied to a timetable.
- Due to the need to contract services online, the conditions and contracts must be clearer and more concise so that the client is not forced to travel to an office to request clarification of aspects of the text that he does not understand.
According to Eurostat , 43% of Spaniards used online banking in 2016. Although we are still behind the European average (49%), it has increased by 4% compared to the previous year.
Leaders in online banking in Spain
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Digitalization of the economy
Openbank
is in second place, well below ING. Its customer deposits total more than 6.1 billion euros, which represents an increase of 25% since the previous year.
EVO Bank
Third place is occupied by with a volume of more than 3.4 billion euros, 13% more than in 2016. A fairly positive progression special database material if one takes into account that it was founded in 2013 as an independent bank.
The following positions are installed:
- (formerly Bancopopular-e) with more than 3 billion and a growth of 7% compared to the previous year. Of all the online banks, it is the one that has issued the most cards, doubling that of ING Direct.
- winner of the for the best fund marketer in 2017, manages 532 million of its clients.
- Lastly, there is which has experienced a growth of 297% in one year, reaching the figure of 397 million.
Mobile banking startup
In recent years, innovative alternatives to traditional banks have emerged. has gained momentum and there are many startups offering these services. Among them are: or Although none of them operates in Spain yet, they are startups worth keeping an eye on for their innovation and rapid growth. Thanks to revolutionary services and minimal or even zero fees, these mobile banking startups have since their creation.
Their main clients are, they say, Generation Y, better known as Millennials . Young people who have grown up with the evolution of digital technology, who are totally rooted in new technologies and who have only recently started their working life.
Varo Money , the online marketing list banking startup created in 2015 and backed by the Federal Deposit Insurance Corporation raised $45 million in 2017 during a funding round thanks to The Rise Fund. Among the innovations that have led this startup to become one of the most important is “ a machine learning algorithm developed to predict customers’ incoming income and their bill expenses .” This helps to more easily predict whether customers qualify for a loan.
Mobile banking gained customers exponentially
Deserve , a startup created in 2013 that has focused on university students, raised $12 million in a round of funding last year thanks to the participation of Accel, Mission Holdings and Aspect Ventures, among others.
Co-founder and CEO Kalpesh Kapadia said in an interview, “ Our mission is to provide access to credit to deserving but underserved youth . ”
Lastly, there is Zero , a startup that emerged in San Francisco in 2016 and whose innovative idea has earned it $8.5 million in a round of funding supported by ENIAC Ventures, NEA and Lightbank, among others. The idea consists of a.
The role of electronic devices in the digitalization of banking
Online banking has significantly increased its presence in people’s daily lives. Electronic devices such as smartphones, smartwatches and, to a lesser extent, tablets have significantly contributed to this increase . In 2016,
A substantial improvement in device security, such as , has favored the development of online and contactless payment applications and platforms on iOS and Android systems.
technology , integrated into iOS devices, and , integrated into the Korean brand’s smartphones and smartwatches, allow payment from the terminals through fingerprint authentication ( Touch ID ) and facial recognition ( Face ID ).
