The board of directors of Bankinter has decided to integrate EVO Banco within its own structure through a merger by absorption in order, in its words, to “strengthen its digital strategy.” “The purpose of the merger is to make the most of the synergies between both entities and thus enhance the digital transformation of the group. This merger will mean the integration of clients, business and employees of EVO Banco under the Bankinter structure,” Bankinter explained in a statement sent to the National Securities Market Commission (CNMV).
From EVO they have sent a statement to their clients ensuring that it is an operation that will “benefit” them. This move is part of the growth plan of the new CEO of Bankinter, Gloria Ortiz, whose objective is to improve the group’s profitability and efficiency, as well as maximize the value delivered to shareholders.
What happens to EVO clients and their contracted products?
From Bankinter they have indicated that EVO clients will be able to continue operating in a 100% digital way, although they could also benefit from Bankinter’s “capabilities” in terms of products and services. Of course, they have stressed that “for the moment, nothing changes” for EVO Banco clients.
When the integration of EVO Banco into Bankinter is completedEVO Banco clients will become Bankinter clients “for all purposes”, so, for example, they will be able to receive service at Bankinter branches, a service that until now did not exist with EVO Banco, as it is a absolutely digitalized service.
What changes for Bankinter clients
Bankinter clients also continue with their contracted products and services in the same wayalthough it is added that they will be able to have access to new functionalities and all the digital innovations that are developed in the future within the group.
And what happens to the employees of EVO Banco
By integrating into Bankinter, the EVO Banco brand, as such, disappears. The truth is that from now on Bankinter will stop using the EVO brand commercially, although according to bank sources they will keep it as property for possible future uses. This means that There will no longer be EVO employeesbut according to what they indicate, they will be part of the Bankinter structure.
Thus, the bank expects the operation to be completed in the first half of 2025, with the full integration of clients, business and employees. Currently, EVO Banco has more than 200 workers. The company has assured that all of them will join Bankinter, “from where they will continue to develop innovative digital products and services that enhance Bankinter’s digital leadership in all its business lines and in all the geographies in which it operates: Spain, Portugal, Ireland and Luxembourg”.
In mergers of this type, it is common that certain positions are lost, in order to avoid duplication and reduce costs. In the merger of Caixa Bank and Bankia, for example, more than 8,000 workers requested to join an ERE to leave the company. With more than 16,000 employees from CaixaBank and 35,000 from CaixaBank, the number of layoffs that were handled with the merger was between 7,000 and 9,000.
In the case of the merger of Bankinter and EVO, there has been no talk of ERE or layoffs at any time, although the differences between that case and this one must be highlighted: EVO Banco, for example, will not suffer the closure of any branch, as to be a 100% digital banking entity, and its number of employees is relatively low, if the total number of Bankinter workers is taken into account, more than 6,500.
Why EVO is now merging into Bankinter
EVO integration move occurs five years after its acquisition, which occurred in 2019. At the time of the purchase, carried out jointly with the Irish financial company Avant Money, Bankinter declared that it was a “very recognized” brand that would allow it expand your customer base and explore new avenuess complementary to the financial business from an “innovative, entirely digital and designed to manage large volumes” approach with lower costs.
After this time, EVO has managed to “tie” the net result for the first time, what is known as ‘break even’. This equilibrium point indicates that There are no profits yet but income equals expenses, with which the entity has demonstrated its ability to create a profitable digital business value proposition. EVO Banco closed the first quarter of 2024 managing 4,205 million euros of customer resources, while credit investment stood at 3,457 million euros.
That is why Bankinter now considers that The time has come for EVO to be promoted as an innovation engine and become an integral part of the bank’s value proposition for all its digital clients under the same structure. This is the second major move adopted by the new CEO of Bankinter, who already decided in April that the bank would establish a subsidiary in Ireland to operate under its own brand instead of through Avant Money. The objective is to capture deposits and offer other types of financial services.
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