Spain's largest banks will invest more than €4 billion in digitization in 2018 as they increase their use of technology in business and develop mobile and internet banking for customers, El Economista reported May 28.
Banks across the board are investing in technology to become more competitive and cut costs. They are up against tough competition, especially financial technology companies that offer services such as payments.
The paper said Banco Santander SA would invest €2 billion in software development in 2018, while Banco Bilbao Vizcaya Argentaria SA, one of the pioneers of advanced banking IT in Spain, would invest €800 million in digitization, in line with previous years.
It said that CaixaBank SA would invest €428 million and Banco de Sabadell SA €300 million. Bankia SA will invest €333 million in 2018 as part of its plan to invest €1 billion over the next three years and increase digital sales to 35% from 16%.
Bankinter SA has earmarked €54 million annually for digital projects and will also invest €25 million a quarter to maintain and develop its technological systems.
The report said the digital banking market had much room to grow in Spain, with digital banking penetration at 46%, below the EU average of 51%.
