...ATHE RETURN OF JAY SIDHU SARAH BLOOM RASKIN: Q&A magazine a With inent nBa prom sorship, spon essive aggr ology n tech ades upgr leek and s ouston , h neW quarters head compass BBva the puts ight on l spot turist l its fuing mode Bank e am G O BBVA Manolo USA’s Sánchez n 2013 m mber o Septe nbanker.c a meric a GAME ON BBVA Compass’ prominent NBA sponsorship, game-changing core platform upgrade and high-tech new headquarters tower–deep within the heart of its Texas base of U.S. banking operations–have opened a new playbook for the Spanish-owned franchise. Its futuristic banking model is attracting the spotlight and giving it the means to grow both in and out of its branch footprint. BY GLEN FEST Francisco González is BBVA’s global chairman and CEO. “When you look across the houston skyline,” says Francisco González, chairman and CEO of BBVA Group, “there’s not one building that defines it.” True enough. In the biggest city in Texas, there is no Space Needle, no Empire State Building, no Gateway Arch, no Sears (or make that Willis) Tower. Houston has Heritage Plaza, the JPMorgan Chase Tower and the Wells Fargo Bank Plaza, but nothing on the iconic scale of the postmodern Cuatro Torres (Four Towers) in BBVA’s corporate home of Madrid, or even Dallas’ Reunion Tower, capped by a bulging-ball design. No, in Houston, the city’s primary architectural achievement, the Astrodome, sits vacant and neglected, and the former Enron Tower now goes by the less-than-catchy...
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...A Case Study of BBVA Compass BBVA Compass is the fifteenth-largest bank in America. In December 2010, they considered about how to allocate the bank’s marketing budget in order to improve the brand awareness and market share. Based on the data and time line provided in the case material, this essay will use expected Customer Lifetime Value (LTV) to measure customer attractiveness versus customer profitability in their marketing decision making. 1. The role of online and offline advertising. From its marketing purpose, the major role of offline and online advertising was to build brand awareness and improve consideration among potential bank customers. In 2009, the brand awareness and consideration dropped significantly because of they changed their brand name to BBVA Compass. Another role is to bringing in new customers and increasing the total number of accounts at the bank. In this aspect, online advertising has a distinct advantage than offline advertising that is information tracking. This can help BBVA have a good sense of return on investment and thus allocate marketing budget in different channel effectively. Additionally, BBVA also want to utilize online and offline marketing to support its product lines such as checking, savings, mortgage, commercial banking and improve satisfaction and retention of the current customers and cross-sell to them. Because, from a survey, the top-three criteria for customer to choose a bank includes free checking service, convenient...
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...Ahmed Usman Sheikh 2012400845 BBVA Compass Case Analysis BBVA Compass, the 15th largest commercial bank in the U.S. in 2010 had to effectively utilize its limited budget to meet its strategic objectives using offline and online marketing mediums. Offline advertising mainly consisted of advertising through the traditional mediums such as newspapers, magazines, outdoor, television, radio and sponsor sporting events like NBA and other regional American football events in their most important markets. The primary reason for offline marketing was to connect with the bank’s customer base and build brand awareness and improve consideration among potential bank customers in the core markets such as the Sunbelt region. Online advertising on the other hand consisted of advertising on the internet through both search and display advertising on websites that generated traffic of users from the target market. The main goals of online advertising were to build online brand awareness and acquire new customers for various lines of business (such as new checking account customers.) Through historical data the company had evaluated that the life time value of new checking account (over 5 year period) was $800, hence the objective of the company was to minimize its customer acquisition cost, which the bank effectively managed to do using online advertising. The 2010 budget split between offline and online advertising budget was 79% and 21% respectively. Considering the rise of social...
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...BBVA Compass: Case Study Analysis Executive Summary BBVA Compass, the fifteenth largest bank in the United States, is operated by BBVA bank in Spain. They entered the US market in 2004 and expanded through mergers and acquisitions. It is positioned as a regional bank across seven states. They are planning to stay in the same geographical area, and become one of the top ten banks in the United States. With the beginning of the financial crisis in 2008, and the peak by 2010 almost all banks were going through a tough period. Government regulations on fees and consumers were leaning towards spending less positioned the banks in a difficult situation, including BBVA Compass. With their decreasing marketing budget, the bank had less than $50 million in 2011 to achieve several different marketing goals, and the money had to be used in an efficient way. On top of these they also had other problems like going against the norm and spending a substantial amount on TV and online, drop of brand awareness after adopting a new name, low conversion rates and ad network’s target market duplication. The recommended plan of action would be increasing the level of online presence by focusing more on social media channels and digital marketing, and focusing more search engine optimization. The bank should also work with the media agency to avoid ad duplication to target markets. Introduction BBVA Compass is the fifteenth major bank in the United States with $49 billion in deposits...
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...statements are the logical steps on how the business is going to reach the vision statement and keep up to its mission statement. Statements A. BBVA Compass Bank experienced five bank acquisitions throughout the past five years and has evolved to ensure one stop service to their customers and promote additional opportunities for sales, by building rapport with current books of business. They are hoping to change the significance of banking by becoming a global universal bank to their customers. B. Mission Statement- BBVA is a global group that offers individual and corporate customers the most complete range of financial and non-financial products and services by being a universal bank (bbva.com). Vision Statement- BBVA, building a better future for people (bbva.com) Strategy Statement- BBVA is a financial services group that strives to grow stronger through improvements in efficiency, profitability and capital adequacy commensurate with competitive advantage (bbva.com). Statement Validation A. As the mission, vision, and strategy statement are to be used as tools to embrace the organization’s purpose, existence, and future development. As change agents tend to be a huge factor in all of these preceding statements, the vision statement will define the best attributes of BBVA that makes it better than its competitor. The mission statement notifies what is happening now and creates...
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...Tarleton State University Fall 2012 - Business And Society (G-B-103-052) David J. Plotkowski 000415004 Professional Interview Assignment October 15, 2012 BBVA Compass Bank Mark Lewendowski – PSS BBVA Compass Bank Professional Interview 11:00am Mark, why did you decide to enter the field of Healthcare Banking? “Healthcare in general is very stable employment environment. People are always going to need a physician or go the hospital. I started out in healthcare provider sales and worked my way up to selling revenue cycle platforms. With the growing number of electronic requirements for electronic funds transfer and payment reconciliation this position keeps me in a rapid growth market with stability to grow my future in banking as well as healthcare.” What appeals to you about your position? “The pay and benefits are great of course but just being around people and providing physicians and hospitals a solution to help them overcome the shortcomings of their systems really makes me feel satisfied at the end of the day.” How did you find the job? “One of my colleagues from another company actually ran across the position. He recommended me to Compass. In the healthcare industry you seem to always run into the same people. It is best to stay in touch and I recommend you keep very reputable. This may open other opportunities.” Does the position fit your background or did you have to make adjustments to the banking part of the healthcare market? “I believe...
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...In 2010, BBVA was the second largest bank in Spain (48 million customers and 104,000 employees). Through an acquisition, it entered the US market in 2004. By 2009, it had established itself as the fifteenth largest commercial US bank and a significant regional player in the Sunbelt region. BBVA has three primary lines of business: retail banking for consumers and businesses, corporate and commercial banking, and wealth management. Their goal is to become one of the top-10 banks in the US. BBVA’s target demographics is consumers identified as “strivers”, upwardly mobile 25-54 years old with an annual income of more than $75,000. The primary marketing goals for BBVA, through online and offline channels, are to build awareness and trust in their brand, support their various lines of business (savings, checking, mortgage, commercial), and to improve satisfaction and retention of current customers. However, there is a slight difference in expectations between online and offline. The major goal for offline marketing is to build brand awareness and consideration among potential customers. Online goals are to build online brand awareness and acquire new customers. BBVA’s conundrum is how to best allocate their 2011 marketing budget of approximately $50 million between online and offline platforms. Our overall recommendation is to increase marketing funding to online advertising in order to gain more customers. Currently, only 5% of BBVA customers are acquired...
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...U.S. Economic Watch 10 July 2015 Digital Banking Blockchain Technology: The Ultimate Disruption in the Financial System Nathaniel Karp • Blockchain ledgers bypasses centralized financial infrastructure • This leads to the development of new businesses and the overhaul of existing ones • For the financial sector it could imply the biggest disruption to date “I have now no doubt whatever that private enterprise, if it had not been prevented by government, could and would long ago have provided the public with a choice of currencies, and those that prevailed in the competition would have been essentially stable in value and would have prevented both excessive stimulation of investment and the consequent periods of contraction.” –F.A. Hayek “… the key innovation of digital currencies is the ‘distributed ledger’ technology that allows a payment system to operate in an entirely decentralized way, with no intermediaries such as banks.” –Bank of England What is Blockchain? Blockchain is a peer-to-peer public ledger maintained by a distributed network of computers that requires no central authority or third party intermediaries. It consists of three key components: a transaction, a transaction record and a system that verifies and stores the transaction. The blocks are generated through open-source software and record the information about when and in what sequence the transaction took place. This “block” chronologically stores information of...
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...Bank of America: Decisions for the Future ECO 550: Managerial Economics 16 June 2013 Abstract Long-term capital budgeting is the process used by many companies to make substantial term investments, in order to receive the greatest cash flow. A company must first look at an analysis of cash flows and cost and earnings of the project to determine whether to accept or reject a capital budgeting project. The three rules used to make decisions towards capital budgeting; the payback period, net present value (NPV), and internal rate of return (IRR). The Payback Period is the tool that is used to determine how long it takes for the project to recover its initial costs for funding the project. The Net Present Value shows how the present project will affect the company. The Internal Rate of Return reveals the discount rate if the NPV equals zero. The antitrust law is a federal and state law regulation of corporations. The law insures that company does not grow too large which may prevent the growth of other corporations. The government believes that without this law that prices can become fixed and demand will be unfair in the market. In Assignment 3, I discussed the publicly traded company, Bank of America Corporation, and how the corporation deals with competition and change. In this paper, I will discuss the government regulations for mergers, the possible merger that could occur, and how the merger could be profitable. Explain why government...
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...provisiones. También se ha aprobado la creación de “Bancos Malos” el cual será dirigido por dos expertos independientes los cuales harán una valoración de toda la cartera crediticia. Estos expertos deben contar con prestigio internacional, tener capacidad para acometer una tarea tan amplia en un plazo breve y no tener conflictos de interés. Con la creación de los “Bancos Malos” todos los bancos se verán obligados a traspasar todos sus activos inmobiliarios y también inversiones. El ministro de economía ha insistido que estas medidas no supondrán ningún coste contra los contribuyentes y se realizara en forma de préstamo. En principio solo Santander y BBVA no tendrán ningún problema para cumplir estos requisitos. En el caso de Santander las provisiones alcanzan un 15% de su beneficio antes de provisiones y en el caso de BBVA alcanzaría un 40%. Mas difícil lo tendrá Bankia ya que a los 4.100 millones de euros que le pide este nuevo decreto ley hay que añadirle los 2.257 millones euros de las...
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...Unemployment has always been considered as a real threat to the economic well-being of the country. In Europe, after World War II, the unemployment rate was very low. Since the seventies of the 20th century, the situation has begun to change and unemployment is rising, reaching its peak point in 1993 year, when the average unemployment rate of European countries was about 11%. Due to global financial crisis, which transformed into sovereign debt crisis in the Eurozone, nowadays, the high unemployment rate in the EU has become an ordinary phenomenon, but a particularly acute problem of unemployment is in Spain, where 26.2% of the population are unemployed (Eurostat, 2013). Although, crisis played a considerable role in this situation, there are also other national features of Spain that led to high unemployment, which if left unattended, will lead to disastrous results. To begin with, it is pertinent to name the causes of the high unemployment rate in Spain. One of the main causes of high unemployment in Spain is a debt crisis. Appeared in United States due to “mortgage bubble”, the financial crisis has had a destructive effect on the banking system, reducing credit supply and increasing the cost of financing. In Spain, the economic growth during the pre-crisis period was maintained by two factors: considerable expansion of credit and large immigration flow. These economic drivers were nullified by the crisis, and starting from 2007, economic growth was slowed. From the second...
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...otros servicios complementarios. La parte bancaria del sector se desenvuelve mejor en un ambiente macroeconómico de bajas tasas de interés, inflación controlada y crecimiento sostenido ya que los bancos ganan de poder obtener recursos con bajo costo y prestarlos con ganancia. Una economía fuerte es una economía que requiere créditos para la inversión y el consumo, lo que beneficia al sector bancario. Datos de la industria en México * El sector financiero representa 4.8% del PIB mexicano al cuarto trimestre del 2011, de acuerdo al INEGI. * Se cuenta con sólo una bolsa de valores, la cual contaba con una capitalización de 729B de USD al término de 2010. Es la segunda más grande de Latinoamérica después de Brasil. * De acuerdo a BBVA Research el crédito bancario es la segunda fuente de financiamiento para las empresas después de las aportaciones de los dueños. El 81.3% de las empresas que obtuvieron crédito bancario en 2010 son microempresas de 10 personas o menos, existe un gran potencial de penetración del crédito. Se prevé un crecimiento real del 9% en el crédito al sector privado para el 2012. * De acuerdo a Euromática, el segmento de crédito autmotriz es el que...
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...PGPPM 2013-15 TERM II Term Paper On CORPORATE FINANCE A study on Mobile Banking initiatives taken by Reserve Bank of India (RBI) to enable financial inclusion SUBMITTED BY A Naga Jyoti 1313009 Scope: This term paper envisages to study the major initiatives taken so far by Reserve Bank of India to enable financial inclusion using mobile device and the way forward to take the initiatives to the next level. Financial inclusion is the delivery of financial services at affordable costs to the disadvantaged and vulnerable segments of society. Indian banking sector has been facing severe challenges in bringing these under privileged sections of the society into the formal financial system. More than 70% of the population, in India, live in the rural areas and these people do not have any access to organized banking facilities. Extending the financial services to these unbanked population is a major challenge to the banks as operating cost of providing the services to this population is much higher than the monetary value that is carried by their financial transactions. Several innovative measures have been initiated by RBI to drive growth in financial inclusion like: 1. No-Frills Accounts (NFAs): RBI encouraged the banks to review their existing practices to enable financial inclusion. Banks extended financial services to the unbanked households by opening “no-frills” account (NFAs) with nil or very low minimum balance. Banks have even relaxed Know your Customer...
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...«Coaching» en el Banco Ganadero - BBVA (A+B) Questoes do Caso no âmbito da disciplina de Comportamento Humano na Organização FERNANDA GOMES XII Executive MBA AESE/IESE NOV/2012 LESSONS - LEARNED 1. Com a atitude de Ramiro “Falhas” cometidas por Ramiro aquando da avaliação dos seus subordinados: a) Julgamento com base em ideias pré concebidas; b) Aparência; c) Falta de equidade; d) Falta de reflexão sobre as avaliações para obviar a decisões ou julgamentos precipitados; Poderemos afirmar que a 1ª lessons-learned de Ramiro é que por vezes tomamos decisões ou efectuamos avaliações incorrectas mas que devemos sempre rectificar os erros cometidos. Por outro lado, a percepção destas “falhas” (lessons-learned) permitiu a Ramiro corrigir os erros cometidos aquando da primeira conversa com os seus subordinados sobre a sua avaliação permitindo ganhos visíveis em termos de trabalho em equipa, bem como o alinhamento das motivações individuais com as da Organização. 2. Com o Caso a. Funcionamento da organização O modelo de avaliação implementado na empresa o qual visa a compreensão das motivações, pontos fortes, áreas a melhorar e desenvolvimento dos colaboradores através de uma complementaridade entre a avaliação por objectivos e a avaliação por competências trouxe resultados bastante positivos para a organização. Na realidade, o modelo de avaliação implementado permitiu reforçar os pontos fortes e um claro desenvolvimento das áreas a melhorar...
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...Infrastructure & Capital Projects Life Sciences & Healthcare Manufacturing Private Equity Real Estate Sports Business Group Research & publications Services Sports Football Cricket Rugby Union Tennis Motorsports Horseracing Other sports Public sector and sport Technology, Media & Telecommunications Travel, Hospitality & Leisure Login i_sign_in Register 1. Real Madrid Deloitte Football Money League 2013 2012 revenue 2011 revenue 2011 position €512.6m (£414.7m) €479.5m (£433m) 1 Real Madrid not only maintain their position as the leading club in the Deloitte Football Money League for an eighth consecutive season, equalling Manchester United’s record, but also become the first club to surpass the €500m revenue threshold. Revenue increased by €33.1m (7%) to €512.6m (£414.7m) in 2011/12 and with a slightly increasing €29.6m gap to rivals FC Barcelona, Real Madrid remain the team to catch. Real Madrid 2011/12 will be remembered as a record breaking year for ‘Los Merengues’ both on and off the pitch. They won the La Liga title for the 32nd time gaining 100 points in the process - a feat that has never previously been achieved by any Championship winning side in any of the ‘big five’ European leagues. In doing so, they won 32 games scoring 121 goals, the most ever by a La Liga side in both cases. Jose Mourinho’s side also had a good run in the UEFA Champions League before...
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