Bankia : EU supports Bankia’s digitalisation with a €50 million loan from the EIB as part of the “Juncker Plan”

• Bankia is the first bank in Spain to support from the EIB as part of a wider €300 million program for modernising digital platforms in the Spanish banking sector
• The bank will use this loan to finance digital transformation projects begun in 2015 and representing a total investment of more than €100 million over a three-year period
• 'Innovation in digital banking products has ceased to be an option for the European banking sector' said the vice-president of the EIB, Román Escolano, at the signing ceremony
• Bankia's chairman, José Ignacio Goirigolzarri, explained that 'Technology and digitalisation will be fundamental for the banking sector to reduce the cost of its processes and improve customer relations'

The European Investment Bank (EIB) will support Bankia's digitalisation processes with a €50 million loan, making Bankia the first bank in Spain to access the €300 million program launched by the EIB to promote the modernisation of digital platforms in Spanish banks.

Bankia's chairman, José Ignacio Goirigolzarri, and the vice-president of the EIB, Román Escolano, signed the loan agreement today as part of the Investment Plan for Europe, otherwise known as the 'Juncker Plan'.

The aim is to help Bankia launch a program until 2018 that will enable it to incorporate new technologies into its information management to improve the digital products that it offers its customers as well as to innovate and create new products.

The EIB's program to digitalise the Spanish banking sector is intended to make the Spanish banking system more competitive and capable of offering more and better services to its customers. Spain is below the EU average for online banking use.

The incorporation of the latest digital technologies will enable Spanish banks to become more efficient; improve their mobile telephony services; optimise their information management processes; and to adapt the latest IT developments to better protect themselves against potential cyberattacks.

The programme will also have a positive impact on customers, who will have access to a wider variety of digital banking products with just one click.

First time that the EIB has directly financed Spanish banks

This is the first time that the EIB has used loans to directly finance banks in Spain, so that they make their own investments. These loans are therefore intended to benefit the Spanish banking system and not third parties and will be used by each individual bank.

'Innovation in digital banking products has ceased to be an option for European banking' said the vice-president of the EIB, Román Escolano, at the signing ceremony. 'The EIB is supporting Bankia with this loan, which has been granted as part of the Juncker Plan and used to accelerate its digital transformation and optimise its efficiency'.

Jyrki Katainen, European Commission Vice-president for jobs, growth, investment and competitiveness said, 'The Investment Plan for Europe has proven to be a success and to date Spain has been one of the largest beneficiaries, in both the public and private sector. I am delighted that Bankia will be able to improve its digital services to benefit its customers, with the support of the EFSI.'

Bankia's chairman, José Ignacio Goirigolzarri, explained that 'technology and digitalisation will play a fundamental role for banking in the coming years, both in reducing the cost of its processes and above all improving the relationship with customers and providing them with better service'.

Goirigolzarri expressed his gratitude to the EIB for its support in this transformation process, which is a priority in the bank's strategy.

The bank will use this loan to finance digital transformation projects that were begun in 2015, and that will represent a total investment of more than €100 million over three years.

100 million investment in Bankia's digital transformation plan

The objectives of Bankia's digital transformation plan include improving the efficiency of the commercial and administrative processes carried out by branches, as well as improving regulatory compliance and protecting customers' interests.

It also seeks to provide a comprehensive vision of the customer relationship by developing and improving online channels; to strengthen the use and development of 'Big Data' and business intelligence technologies as supports for digital marketing; and to strengthen customer service from a multichannel perspective.

The 'Connect with your expert' service, which currently provides personalised service and advice to 220,000 digital customers via a remote format, is based on these investments. The bank's target is for a total of 250,000 customers to use this channel by the end of 2016, rising to 500,000 by the end of 2017.

Today's signing brings the total number of operations signed by the EIB group in Spain as part of the Investment Plan for Europe to 16. In addition to those already signed, the EIB has also approved another nine loans in sectors such as the automotive industry, R&D+i, environmental technology innovation, and electricity and gas distribution, among others. These signed and approved projects represent a combined investment of around three billion euros under the Investment Plan for Europe in Spain.

Note

The European Investment Bank (EIB) is the European Union's long term financing institution that is owned by member states. The EIB provides long term financing for viable investment projects in order to help achieve the EU's policy objectives.

Investment is one of the European Commission's highest priorities. The Commission therefore announced the Investment Plan for EuropeOpen in a new window just three weeks into its legislature, with the European Investment Bank (EIB) acting as the strategic partner in the Plan. The European Fund for Strategic Investments (EFSI) also lies at the heart of the Plan. The EFSI was created for an initial period of three years in order to distribute at least €315 billion, while also seeking to maximise the private sector's contribution. Having witnessed the success achieved by the EFSI in its first year, the Commission has decided to double its financial capacity and duration. On 14 September the Commission therefore presentedOpen in a new window a legal extension that covers the period of the existing multi-year financial framework and should provide at least €500 billion in investment until 2020.

For more information about the results of the Investment Plan for Spain, click hereOpen in a new window.