Tue. Apr 23rd, 2019

BBVA will unify its brand around the world and end its local names | Economy

BBVA will unify its brand around the world and end its local names | Economy



The BBVA He has made a decision of draft. Maybe the first under the presidency of Carlos Torres. As reported on Monday to the Argentine securities authority, "as a result of the decision of the holding, in BBVA Francés has begun a process of transition to the global brand BBVA, which means that all assets identified with local brands will pass to be identified with the unique brand BBVA ". This is only the first step that the other brands of the group will follow, according to the organization's sources.

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These same sources also suggest that decisions will be made country by country in the coming months. From the BBVA did not want to comment, but the document sent to the Argentine securities commission, which has had access EL PAÍS, explains that "various reports have been developed from which arise fundamentals that expose the convenience of migrating to a global brand "

BBVA thus follows a step that Santander took years ago with all the subsidiaries of the world, including its bank in the United Kingdom, and other large financial multinationals and all sectors. In an increasingly globalized digital world, brand experts advise to unify the names of companies to identify them more easily and thus transmit their strengths and values, although their weaknesses are also propagated when problems come.

In Spain, BBVA still maintains the Catalunya Banc logo in this region after acquiring the old savings bank in 2015. However, it did not preserve the Unnim brand, a grouping of Catalan savings banks that it also acquired, as it does not consider it to be deeply rooted in the region. Abroad, the main brands are BBVA Bancomer in Mexico, BBVA Compass in the United States, Garanti in Turkey (the most difficult country to carry out this transformation due to the lack of knowledge of the BBVA brand and the strength of the original brand ), in addition to the French BBVA in Argentina and the BBVA Continental in Peru. In Colombia, it was called BBVA Ganadero, but in recent years it has been working only with the bank's original name.

Among the advantages of unifying the brand is that for the digital transformation "the presence of a global brand is considered an essential factor", in order to achieve "a rapid evolution in terms of digital financial services". BBVA expects to obtain "significant benefits" from long-term cost efficiency, because it favors the emergence of global synergies, "the greatest facility to achieve expansion into new markets and sectors, improvements in digital credibility and because it generates a increase in the value of the brand ".

Those responsible for the entity believe that in the digital transformation only the name BBVA will adapt better than if they keep the surnames of each country that refer to the names of the original entities that were bought at the end of the nineties in Latin America . However, this operation will require a significant investment in the change of signs, brands and stationery, since the entity has thousands of branches in the affected countries. BBVA seems willing to change because it states that the generic name "generates more confidence in the consumer".

Doubts in Mexico

However, in Mexico there is concern about the measure. A senior executive of BBVA Bancomer He assured EL PAÍS that the decision to eliminate local brands will cause problems for the bank, the largest in the country with nearly 20 million customers. Bancomer is the Spanish bank with the most exposure and the most profitable. The North American country is the second market for the group headed by Carlos Torres and contributes more than 40% of the company's global benefit. In 2018, it had profits of 2,187 million euros, some 21,000 million pesos, 17% more than in 2017.

Bancomer executives believe that the death of the brand, deeply rooted in Mexico, could generate rejection among its customers. The bank, founded in 1932, has more than 80 years of history. In the year 2000, it was bought by BBVA. The loss of the Mexican surname could generate more resistance in a nationalist environment driven by the Government of the National Regeneration Movement (Morena). The financial sector is also undergoing new changes according to the Administration of President Andrés Manuel López Obrador.

The consulted executive, who has asked not to be cited by name, believes that the decision made in Madrid was not properly consulted with the American parties for their disadvantages. However, it is considered that the measure has already been taken and that it will come into force for the second half of this year. Bancomer is already looking for suppliers to change the marquees of its branches in the country, including the one that adorns the top of the iconic BBVA Bancomer Tower, one of the tallest buildings in Mexico City.

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