BBVA relies on overdraft anticipation

The Spanish bank BBVA continues to optimize its remote banking services. Its mobile application, which has just been updated as part of a complete overhaul based on the massive integration of Artificial Intelligence technologies, is now enriched with a new complementary functionality. The latter promises to allow its customers to anticipate their discovery.

FACTS

• BBVA has just presented a new feature for its mobile banking application. The latter should allow customers to avoid overdrafts by anticipating, through personalized notifications and advice, situations where their balance could become negative.

• This new functionality is based, as expected, on AI technologies and predictive analysis. But here technologies are specifically dedicated to anticipating customers' discoveries and improving their financial management.

• The BBVA application analyses the history of account transactions to anticipate automatic debits. She then offers a personalized savings plan, updated monthly, to customers.

• A complementary module also allows customers to link other accounts with their name to their BBVA account to automate automatic transfers between accounts when needed.

• BBVA specifies to finally offer up to 300 euros in advance to its customers (under certain eligibility conditions) to help them pay their bills.

ISSUES

• Complete your device : In addition to BBVA's extensive update for its mobile banking application, the Spanish bank has chosen to rely on the complementarity of features by proposing today an additional evolution based on the concept of prevention. It also focused on the integration of financial coach A few days ago.

• Anticipate to better manage : Here BBVA relies on a predictive analysis of its clients' spending, relying on its knowledge of their habits and analysis of their past spending. It makes this information available to the main interested parties, its customers themselves, in order to prevent the risks of overdrafts and avoid costs.

PERSPECTIVE

• Today BBVA highlights its interest in continuously improving its customer relationship and the services provided to help them optimize the management of their finances. Today, it demonstrates its commitment to prioritise the prevention and financial health of its clients rather than its overdraft costs.

• However, these costs represent a source of revenue for banks. In France, the Bank of France stated in its annual report of the Observatoire de l'inclusion bancaire de 2022 that the average annual amount of incident charges to fragile customers varies between 65 and 205 euros in the main banking groups. A report commonly shared in the press and by a number of community actors points to an estimate that the cost of bank incidents would amount to approximately €5 billion per year for all French banks.

• In Spain, different estimates are based on revenues generated by overdraft costs ranging from EUR 1.2 billion to EUR 1.5 billion per year for the entire Spanish banking market.

Traduit automatiquement via Libretranslate / Automatically translated via Libretranslate