So BBVA is planning to invest $1.2bn in technology projects in South America over the next two years and grow digital and mobile adoption in its customer base. It has nothing to lose and only several million unbanked adoptees to gain, writes Anna Milne

This announcement comes hot on the heels of BBVA’s recent success in Spanish adoption of its HCE mobile wallet, leading to expansion in Chile, Mexico and the US by the end of 2014. BBVA claimed it was the most popular bank app for mobile payments in Spain and wants to make it available in each of the bank’s operating countries.

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BBVA global presence

Source: BBVA press room

According to Forrester research in 2013, mobile banking will be superseded by tablet banking in Europe by 2016, as the latter is growing twice as fast. It cites growing tablet ownership, increased availability of tablet banking apps and fewer security fears among tablet users than mobile users as the key drivers behind the predicted growth.
The forecast covered digital banking adoption across Spain, France, Germany, Italy, the Netherlands, Sweden and the UK and included the following findings:

  • France is the only country where tablet banking will not overtake mobile banking by 2016 due to lower tablet adoption and the third highest mobile banking adoption
  • European tablet banking predicted to increase from 35% to 68% by 2018.
  • By 2018, Sweden will have the highest tablet banking adoption at 89%; Italy the lowest at 54%
  • Consumers are unlikely to ever trust mobiles as much as PCs and tablets as the latter two are considered at-home devices that are rarely lost and therefore perceived as more secure.

The same trend will no doubt be followed in Latin America, once the mobile market is saturated and widespread banking fully incorporated. In the meantime, mobile banking in South America is likely to follow mobile and digital trends in Africa and India, overtaking Europe as it serves the remaining unbanked population.

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BBVA recognises the immediate need for digital and physical expansion, not least to harness the raw profit potential in a largely unbanked population, and says it will open more branches and install more ATMs. I’m sure it will, in order to get those unbanked on board. In other countries, you might be forgiven for not believing such pledges but in banking the unbanked, there is only gain to be had for BBVA.

BBVA’s Facebook bank account in Chile in March 2014, BBVA Link

BBVA Link- Facebook bank account

Source: BBVA press room