Carlos Torres Vila has announced that “We want to build on the excellent work done by Sabadell. Therefore, after the integrationwe have the firm commitment to maintaining Sabadell’s risk management model for SMEs. In fact, unless there is a situation of financial deterioration, we will maintain the working capital lines of all small and medium-sized companies for at least 12 months.”
In his speech, the president of BBVA listed the main challenges that companies face today. Firstly, a constantly evolving environment, marked by geopolitical events and changes in the economic and technological scenario, especially the robotization and the Artificial intelligence. All this, with pressures protectionists upward.
“These challenges are the subject of the Report on the future of the Single Market, which was commissioned by Enrico Letta by the Council of the EU under the Spanish presidency and published just a few weeks ago. A report that highlights the need for larger scale to ensure Europe’s progress and competitivenessespecially in the financial sector, and that makes a call to action to strengthen the European Union and the Single Market,” he noted.
Among the challenges that Letta highlights in his report, Carlos Torres Vila has highlighted two: the innovation and the sustainability. For BBVA, these challenges are an opportunity “to achieve greater competitiveness and boost economic growth and the well-being of society.”
With regards to the sustainabilityfrom your point of view, European companies in all sectors must undertake transition plans to reduce their emissions and “SMEs are no exception”. In order to make this transition successfully, companies have growing support from the public sector, with economic programs such as NGEU European fundswhich entail the commitment to reforms that favor the private investment. “At BBVA, one of our strategic priorities is to support our clients in their transition plans, both with advice and financing. And the size of the opportunity never ceases to surprise us,” she noted.
So, last year, BBVA channeled more than 70,000 million euros into sustainable business, double that of two years ago, and more than five times the amount of five years ago. “Much of that growth has to do with companies. Proof of this is that the mobilization of sustainable financing for this type of companies doubled in 2023”, he indicated. Next, he highlighted that the development and adoption of new clean technologies, known as ‘cleantech‘, is essential to decarbonize activities that do not yet have an efficient sustainable alternative, something in which BBVA is already investing.
The president of BBVA recalled that beyond the digitization“we are facing an unprecedented wave of disruption”, described as the cfourth industrial revolution. In this context, “the artificial intelligence “It stands out for its potential to become a generally useful technology, which can revolutionize almost all productive sectors,” he stated. In this way, companies must face substantial investments to harness the full potential of AI. “At BBVA we have strategic agreements, such as the one we recently announced with OpenAI to deploy 3,000 chatGPT licenses among employees“, has said.
Carlos Torres Vila has valued the effort of Spanish SMEs to adopt digital technologies. But he highlighted that “we still have a way to go” to reduce the difference in investment in R&D between Europe and the main world economies, and between Spain and other developed economies such as Germany or the US.
Likewise, he has indicated that, although for two centuries Europe was a benchmark in innovation, “The trends of recent decades show that we are falling behind” compared to other economies, such as China or the US. The EU is trying to respond to this situation, through the work of institutions such as the European Investment Bank (EIB) or the European NGEU funds, “vital for the recovery from the pandemic and the promotion of innovation.” Likewise, he made special mention of the recovery plan and promotion of the green and digital transition, of the Spanish Ministry of Economy, and the upcoming creation of the Productivity Council.
In the current economic and technological context, the president of BBVA considers that greater collaboration between the public sector and the private sector is key to attracting and channeling investment towards Spanish companies, through the financial sector. This is of vital importance in Spain, since the vast majority of the business fabric is made up of small and medium-sized companies. Specifically, SMEs and the self-employed account for more than 60% of employment in this country. Carlos Torres Vila has stressed that “a strong financial system is essential to support public programs and multiply their impact by channeling additional funds.” An example of the success of public-private collaboration has been the ICO credits during the pandemic, where the banks “worked hand in hand with the Government, thanks to which the loss of the productive fabric was avoided.”
The banks They play a fundamental role in the economy: they promote economic growth, channeling savings towards productive investment. “At BBVA we support companies in Spain, and in particular SMEs, which are the engine of the country’s growth and development.”, he pointed out. In this way, just last year “BBVA incorporated as new clients 70,000 SMEs and 64,000 self-employedand in the first four months of this year we have increased those rates of attracting new customers by 10%.”
Furthermore, he stressed that “it is the obligation of everyone, of public and private institutions, to ensure that the benefits brought by digitalization and sustainability reach everyone.” In his opinion, Spain must act in two areas: on the one hand, invest in educationand on the other, favor the financial inclusion of all segments of the population.
To conclude, he referred to the importance of designing “effective economic policies, stable regulatory frameworks and investment strategies.” public-private cooperation that promote investment”, which will allow Spain to “take advantage of the opportunities associated with innovation and sustainability to compete successfully in a global market.” And he has stressed that the role of banks is fundamental to amplify the effect of these measures and ensure their reach to companies, the self-employed and families. So, ““We will not only contribute to the economic success of our country, but also to a more inclusive and sustainable future for all.”has said.
