Enrique Jiménez-Herrera: "We aim to become the largest transaction bank in Latin America" April 29, 2013
Enrique Jiménez-Herrera: "We aim to become the largest transaction bank in Latin America"
Enrique Jiménez-Herrera Burgaleta, Head of Global Transaction Banking, explains how BBVA can satisfy corporate, institutions and SME's transaction needs thanks to a comprehensive offering of products and services, an excellent team of bankers and specialists, and an extensive network and footprint in Spain, Mexico and South America.
Q: What is CIB's product offering in transaction banking?
BBVA has specialized in offering our customers the best service to meet their transaction requirements and providing a full range of products that meet their treasury needs, facilitating their working capital financing requirements and supporting their Trade Finance activity .
Our catalogue comprises from the simplest Cash Management products – various payment and collection services, liquidity management solutions and nostro-vostro account services for international financial institutions – to highly sophisticated Working Capital and Global Trade Finance solutions including domestic and international factoring and reverse factoring solutions, supply chain financing, short-term bilateral loans and transaction financing with the support of Official Export Credit Agencies. We are especially active with CESCE in Spain and SACE in Italy.
This entire range of products and services is offered to customers through our various e-banking and mobile banking channels and platforms and direct channels, such as Swift and H2H.
Q: What are the key trends in Cash Management and how is BBVA responding to the different challenges it faces?
In Cash Management, customers are seeking to interact with the Bank in a partnership relationship in which we become partners in their business. Customers interact with us via various channels and platforms, choosing the most appropriate channel for each product and in an increasingly centralised manner, from their regional or global treasury centres.
BBVA has a comprehensive offering on its BBVA net cash platform, which combines strong local capabilities to provide services to companies in different national markets with ever-improving global capabilities, which are mainly demanded by major corporates and multinational companies which require, for example, centralised account management or their international payments to be issued from a single location.
In addition to our presence in Spain, these capabilities are especially strong in Mexico and South America, where we boast an extensive network of branches in subsidiary banks. This BBVA footprint allows us to provide solutions throughout our customers' value chain in their relationships with suppliers, employees, public administrations …
These capabilities make us the outstanding partner for companies anywhere in the world with commercial interests in this burgeoning region. And consequently our ambition is to become the largest transaction bank in Latin America.
Q: What aspects of the BBVA position in Trade Finance would you highlight?
Another notable trend is the growth in trade flows in the regions where we have the strongest presence so we are very confident that the Bank is superbly positioned to offer Trade Finance services to its customers in all client segments.
We are currently present - either with subsidiaries banks, branches or representative offices – in the world areas which generate over 50% of trade exchanges. And, on top of that we are present in the two geographical areas which involve over 20% of trade exchanges.
This consideration, together with an increase in corporates financing requirements and guarantees on trade exchanges - which we think is accentuated by higher credit and sovereign risk perception - , makes us the ideal partner for customers with international requirements.
And we certainly are specialists and able to offer the very best service. We have an extensive catalogue of products, including performance, bid and advance payment bonds, letter of credit, standby letters of credit and a comprehensive range of technical and economical guarantees, as well as processing capabilities in a large number of countries.
Q: What challenges does this business face going forward?
In my opinion, we face three key challenges over the coming years.
First, we must be able to leverage technology so that we can offer our customers the very best solutions and products. We have an array of ambitious projects underway aimed at improving our capabilities in payment dispersion, cash centralisation and Trade Finnace services. These range from proprietary platforms to participation in multi-bank platforms. Our aim is being wherever we are needed by the customer.
Second, we must transform the new regulations affectting the financial sector into an opportunity for BBVA. SEPA, T2S and Basel have changed the game rules and at BBVA we know that we need to adapt and improve if we are to achieve our goals.
And finally, we must incorporate into our product and services offer - comprising WC, Trade Finance and Cash Management - the new subsidiaries and customers gained as we expand into countries such as the US or Turkey, where the Bank has made hefty investments.