The outlook for the digitalisation of Spanish banks: risks and opportunities

The rapid developments in technology, the expectations of digital customers and the emergence of new competitors have driven banks to reconsider their business models and improve their internal processes. In an environment of low interest rates and reduction in margins, banks are looking for new sources of income and focus their strategy on customers, providing products and services that enhance the customer experience and customise their offer. At the same time, banks are launching digital transformation plans to make their internal processes more effective and efficient. This article describes the current situation regarding the digitalisation of Spanish banks. It also provides a non-exhaustive list of the potential risks and opportunities arising therefrom. Furthermore, the article presents a number of supervisory challenges. In our experience, it is essential that supervisors keep an open and ongoing dialogue with the industry that enables us to get real knowledge of banks’ actual digitalisation situation while at the same time facilitates the transmission of our supervisory expectations.