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[Music]
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[Music]
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we have the pleasure today of having
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with us Enrique G who is the uh
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president of uh kaha Navara a Savings
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Bank in Spain and also uh responsible
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for industrial Investments at kaisa bank
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which is one of the largest uh Savings
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Banks in all of Europe in fact uh Mr G
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thank you so much for coming thanks
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thanks a lot my blessure uh so uh given
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your you know very long experience in
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the banking sector in a key European
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economy um I would like to begin by
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asking you uh a very very general
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question which I think a lot of people
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are wondering about which is what are
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the main challenges that the banking
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sector is facing nowadays uh if you had
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to choose two or three which ones do you
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think are the ones that uh are uh at the
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top of the list uh in the minds of uh
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Bankers around the world these days well
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first of all well thank you very much
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Mao this my pleasure to be here um
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answering first of all uh of course
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getting more more more and more Capital
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raising
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Capital second from my point of view is
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how to find Finance the the new the new
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requirements for
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it uh Technology
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Innovation and third one from
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theological point of view is how to
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rebuild the peace with customers and
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with Society in general how to get once
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again the
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confidence and stable
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confidence between the and Society
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between the banks and the society yes
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okay so these are the three the three
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main challenges facing Banks today uh
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putting aside at least for for a second
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uh uh the need for more Capital uh you
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mentioned as the second Big Challenge uh
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finding the the resources to invest in
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technology and uh and in Innovation
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which specific areas uh do you think
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banks are in most need of uh investing
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in uh let's say over the next three or
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five years yeah well first of all of
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course uh Mobile
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Banking uh second could be how to to
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make
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ouring but first of all to compete
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better uh in the markets Mobile Banking
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how to resolve this and uh thinking
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about the European and the Spanish
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situation uh what new models or what new
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experiences uh uh would you say are the
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most important taking place right now in
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the area of Mobile Banking well the
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immigration from from the cards uh to
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the phones to the cellular we have uh
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some virtuous examples in the worldwide
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and uh and European banking have the the
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whole attention and the have put the
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Isis in this okay so it's replacing old
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forms of payment for for new forms of of
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payment that's right uh do you think
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that uh the uh uh social virtual or
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digital social networks uh which of
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course people uh you know are
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increasingly using through their mobile
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phones do you think banks can benefit
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from this new social technology which is
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social networks and uh you know how uh
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people's behavior are being is being
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affected by what their connected others
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are doing do you think social networks
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digital social networks will have an
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impact on banking yeah yeah yeah I'm I'm
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sure I'm sure uh from from the point of
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view of the banking activity from the
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point of view of the
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bankers uh to use the mobile instead of
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the conventional other conventional
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payments models introducing us a high
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potential in in efficiency second The
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Experience tell us that uh customer uh
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use 20% more in the through the mobile
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than with the uh for example the credit
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C or the or the
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Plastics so it's more uh much more
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business and less uh less expenses MH so
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Mobile Banking is going to make uh
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perhaps Banks more profitable yeah than
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of course of course of course that is
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the idea uh which uh countries in the
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world um do you think are more advanced
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uh in terms of the implementation of
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Mobile Banking well we have two two very
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clear examples uh one is uh
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Japan uh Japan is is the pilot the the
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housing pilot or the model and uh Japan
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is showing us very great examples of
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getting new efficiency ratios and how
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people is increasing their their
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operation and the bation with the bank
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and in in in in other world and in in
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other geography it could be
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Kenya Kenya uh in the top of the
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progress Japan but uh in the new new
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emergence in Africa Kenya okay so those
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would be the uh the most the places to
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uh to observe to emulate under my point
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of view yeah that's right okay and uh uh
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at your own uh Bank MH um what has been
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the most significant challenge that you
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faced in terms of using these new mobile
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technologies uh for conducting business
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what has been the most important uh
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obstacle or challenge well uh two two
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challenge uh one one is not from my
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point of view is not problematic is how
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to train the organization and how to
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train the uh the the people the
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customers but I think I think this this
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is going to be easy second is how to uh
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deal with uh the it how to to deal with
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the it companies because there are a lot
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of business to share and what par is in
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this size and what par is in the size of
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the bank of course so are you suggesting
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that those big uh benefits or profits
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that you were referring to a second ago
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uh may not only go to the banks they may
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also go to the it providers or maybe the
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telecom companies for sure for sure for
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sure they are going to they are going to
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get a relevant part part of the of the
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profit they are going to increase the
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use they are going to increase the their
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turnover uh so uh they are going
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to make much more profitable or their
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Investments uh so how to manage with
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this and how to deal and how to
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negotiate it what part of this uh is
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going to be support by the banking
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Banker Bank
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activity and what is going to be support
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by the it or telecom companies and what
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part of the turnover can be
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share uh are the the two deals for the
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managers okay and uh what do you think
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should Banks do in order to ensure that
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they get
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a uh you know sufficient uh share or
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part of those profits I mean are there
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one or two things that Banks should
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definitely do in order to protect
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their own share of the profits uh that
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may be created by Mobile
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Banking two ideas um first of all first
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of all it's very evident but uh first of
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all how to uh protect theel uh both self
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that uh you are going to be a telecom
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company and not a bank and I'm going to
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be a
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bank how how I'm going to be in my in my
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site and how are you going going to be
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in your because we are going to build
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something together very very uh relevant
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and uh that is going to receive the 70%
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of the whole transaction
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worldwide and second second who is going
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to
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invest second who is going to invest
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who's going to put the money right make
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who's going to do with the money uh in
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the
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infrastructures and uh for sure in the
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development yeah and uh research on
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development do you think banks should
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establish um relationships with several
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telecommunications operators or
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providers uh that's one possibility or
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should they uh instead Focus their
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attention on just one of them and uh
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proceed in that way you know in order to
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implement a uh Mobile Banking
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applications what what is better from
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the point of view of the bank if for a
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long-term relationship the second the
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second but uh but but but I'm sure that
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uh that is a world that is open and so
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the first uh steps everybody is going to
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to talk with everybody but but uh I I
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think that uh finally you can uh you can
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uh be much more competitive through a
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Widing a a good a good a good marriage
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instead of having uh several relations
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okay okay now you mentioned as a third
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very important uh challenge facing Banks
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today uh the uh addressing the one of
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the biggest uh problems that banks have
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uh uh seen since the since the crisis
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which is the the the loss of confidence
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on the part of uh customers and uh and
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Regulators of course and uh more broadly
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society as a whole so banks have
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essentially lost uh quite a bit of Faith
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they have lost
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uh you know trust uh they have a big
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deficit not just in terms of capital but
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also in terms of confidence so what do
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you think uh uh you know should Banks do
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uh over the next uh you know two years
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or five years in order to rebuild that
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uh
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confidence well um for sure there are
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many many ways and different respon
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different answers
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um I think I think that uh one that have
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in count the full
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transparency uh promote the
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participation and uh and uh try to
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consider the
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customer or the client like something
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more than this like uh something like a
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citizen uh could be a a good
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way I think I think that the past have
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show us uh a lot of things that we could
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not
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repeat this the the crisis of confidence
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is a crisis uh first of all of
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transparency uh and and it's very very
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very difficult to get the the virtues of
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transparency if there are not
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participation I can show you uh an
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account and I can show you which has the
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secrets of these accounts but if you are
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not interested in this I can be very
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transparent but it doesn't mind
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so be transparent is good but it's not
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enough you have to promote the real
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interest uh of the customers in the
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bank uh because there are something in
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need for them yes of course but because
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they have a
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role better and higher that be customer
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so they have new
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politician economics or social rights
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for example I think this could be and
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this could be the message of the new
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ways of the of the new time uh people
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people don't want to feel like a
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subet
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uh in a in a company people people want
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to to feel they have uh something
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relevant to to say and something
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relevant to share with the shareholders
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mhm so I've seen you say in the past
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that you think that the clever companies
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of the future should be like republics
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yeah uh with citizens and uh and these
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citizens of course include not only
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customers but also suppliers and that
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they have rights yeah uh so could you
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explain a little bit more how do you
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think this model uh you know should work
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what are the different components of
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this model of the the bank right as a
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republic right as opposed to just uh
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simply as a company that tries to make
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money yeah but it could be a bank it
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could be another
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company the question this the question
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is um having a look at the
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history we have an example of of free
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citizens that want to be much more than
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anything citizens it was Roman Republic
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well the Romans they have a lot of
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troubles and mistakes etc etc etc but
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they build something that during 20
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centuries it was the relevant and the
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the the core of the
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world what what was the beginning of
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this the beginning of this
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was created for from the well something
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like a very old condition of citizeness
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something brilliant something that is
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demanding for everybody well this is an
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example put it into into the companies
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into a bank how to how to to design a
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bank who is going to be love
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it love it I said by the customers
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well the only way the only way is if
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they have not only um participation a
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cosmetic participation because you
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answer uh you you make some questions
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about the product the quality of the
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services Etc no no no it's because they
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are they are very close the KE the key
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decisions they want to know and they
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want to to have the a participation in
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space in which is the price
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policy why uh this uh
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guarantees uh how how they can uh
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concentrated much more products have a
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low
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rate I I mean I mean there are many
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ways
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to put your interest as close as the
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bank or are the company that you even go
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in defense of this
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brand and this is sure sure sure uh
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interest and uh under my point of view
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the key question is how to open the
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ownership and the property
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rights and share is with the customer
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having having in count that the property
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right the shareholders they always have
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to
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uh something like uh two two basic
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rights first of all having the the the
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capital the capital gains and second
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having the accounts how you organize a
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company but in the middle of this you
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can go
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ahead and put
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uh the new formulas like social
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marketing CSR etc etc uh go ahead of
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this and open the space to share
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opinions and to share policies so what
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do you think shareholders of a bank uh
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would want to support this kind of
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comprehensive uh relationship that
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you're talking about where customers
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perhaps even suppliers participate uh in
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uh in the bank why would shareholders
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want to go shareholders want
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shareholders want to to to to increase
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their capital gains and so if this if
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this work uh work on in this way uh for
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sure the shareholders will be very very
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strongly
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glad happy so you're essentially
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predicting that Banks or other types of
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companies that succeed at implementing a
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model such as this will gain a
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competitive advantage over other Banks
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or other companies yes I think thinks I
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well I think so not because of the
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banking industry only I said that this
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is a message of the new time uh new time
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is citizeness New time is you have the
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accet of the full information through
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the technology so new time is uh the
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word of the companies couldn't be a
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closed
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War okay in your own Savings Bank k you
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have implemented a model that follows uh
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these principles yeah could you just
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explain so that we see the relationship
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between the third challenge about uh you
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know confidence its relationship to the
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second challenge with those technology
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what role does technology play in your
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bank yeah uh when it comes to uh helping
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customers participate yeah in the bank
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well uh this is a capital a capital role
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a fundamental role is impossible is
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impossible to promote this new kind of
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relationship if you don't have the basis
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of an a strong technology and an open by
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the way an open model of technology to
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integrated this new um data of
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relationship yes and and and and
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fortunately we have it and uh and we
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could we could did it so you mentioned
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that in information Technologies uh are
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very important mhm uh when it comes to
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implementing a system in which customers
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can participate as Citizens in this
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Republic right so what specifically does
00:19:44
the it system need to do uh so that uh
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customers can
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participate you have to you have to have
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as minimum you have to have a strong
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base of uh data
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warehouse and you have to to
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have spec techniques um abilities in
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data
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mining those two those two are the the
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the basis and for
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sure it's much better if you have uh
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personal
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accountability to every customer you
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know how much are you earning with a
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customer Etc so you need to know how
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much money the bank is making with each
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customer and you need to be able to
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communicate to each customer yeah of
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course how much money is been made and
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then what is we did it right and in your
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uh system what is the customer supposed
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to do with that information uh can the
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customer take action once he or she
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knows how much the bank yeah is uh the
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sense the S the sense of sending this
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information is because we recognize
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uh the right in the customer of knowing
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how much the bank is earning with the
00:21:05
the mortgage of the credit card Etc we
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recognize the the the right to allocate
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a part of this earnings in the social or
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Community per they want okay so in other
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words instead of the bank making the
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decision as to what uh corporate social
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responsibility initiatives to do or to
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undertake what you're doing is you're
00:21:24
delegating that to the customer the
00:21:26
customer then can choose yeah the bank
00:21:28
has made $50 with me yeah then I get to
00:21:31
say uh a fraction of that money uh how
00:21:35
it is spent on CSR activties yeah my
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point and
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summarizing who are which are the
00:21:43
companies that are cled be because they
00:21:46
rebild the relationship as republics is
00:21:50
is the companies that empower the
00:21:53
customers soaring is is give power to
00:21:56
the the customer and Power customers
00:21:59
upgrade their conditions mhm mhm yeah
00:22:02
give them additional rights and in your
00:22:04
experience uh do customers that are
00:22:07
given these rights that are empowered do
00:22:09
they stay more with the bank uh do they
00:22:13
uh increase their loyalty to the bank
00:22:15
yeah yeah yeah of course of course of
00:22:17
course the increase the the the un
00:22:21
loyality uh rate decrease from 12 till 8
00:22:28
this is the turnover in yes in four
00:22:30
years in four years but this is this is
00:22:35
much more relevant if you consider you
00:22:37
have in count that sector the average in
00:22:40
the sector were
00:22:43
increasing so so it's very it's very
00:22:46
clear this is an example uh how about uh
00:22:51
for example if a company
00:22:55
recognize their customers
00:22:58
the right
00:23:00
to have an opinion about the bonuses of
00:23:03
the managers or the team are you doing
00:23:07
that in your bank yes we we did it how
00:23:09
does that system work so customers
00:23:12
determine how much money Executives like
00:23:15
yourself yeah my like myself yes yes yes
00:23:18
and how does it work the system well uh
00:23:21
this work this work because we made a
00:23:24
very big random survey through even 40
00:23:28
,000 customers in a year asking them
00:23:33
questions like uh and and and and asking
00:23:37
them question like for example do you
00:23:40
think we are going by you in the bad
00:23:42
moments or only the good
00:23:44
ones do you think we are managing a
00:23:47
language you can understand or are
00:23:49
incomprensible in comprensible juron to
00:23:52
remind that we are powerful that you
00:23:54
know do you think um we believe
00:23:59
believe uh we trust in people and we
00:24:01
spread of
00:24:03
mission what do you think we are are as
00:24:07
interested in you as in your money
00:24:10
please rank us from 0 to 10 MH and the
00:24:14
board of
00:24:15
directors every
00:24:17
year they rank
00:24:21
a a classification for for example we
00:24:24
need a
00:24:25
seven and two years
00:24:29
we get the seven but one
00:24:31
year it was 60.
00:24:35
6.3 I know and I lose lost 30% of my
00:24:39
bonus so those this was real fire so
00:24:42
those customer ratings essentially yeah
00:24:45
at least in part determine the bonuses
00:24:48
of Executives at bank yeah why not why
00:24:52
not it is a republic yeah and and it's
00:24:55
good for the shareholder because you are
00:24:58
off in good turnover good
00:25:03
payout uh good uh efficiency Etc and you
00:25:07
are giving the the owners of the company
00:25:11
that you are building a longterm
00:25:15
relationship and this is not uh how how
00:25:19
to how to offer your shares to be
00:25:23
invested if your customers are
00:25:25
disappointed with you
00:25:29
how can a responsible chief executive
00:25:33
officer make make this it's impossible
00:25:36
so shareholders this is not shareholders
00:25:39
can think this is my right who is going
00:25:42
to say if my chief
00:25:44
executive is going to get 100% of the
00:25:47
bonus this is my right I don't want to
00:25:49
share it but the question is why not why
00:25:53
not could you also let us know what are
00:25:56
the implications uh of of this uh model
00:25:59
of the bank as a as a republic for the
00:26:02
employees of the bank
00:26:04
mhm well first of all first of all
00:26:09
employees didn't believe this this this
00:26:13
can be
00:26:16
through um but uh a very relevant part
00:26:21
of
00:26:22
them they
00:26:24
feel like uh authentic supporters
00:26:28
they feel
00:26:29
that this is something like we're going
00:26:33
to do good
00:26:35
business by doing good
00:26:38
things so we are going to we are going
00:26:41
to go to to do uh to do it well by doing
00:26:47
the good the good things so um this
00:26:51
represent the opportunity to not only be
00:26:54
bunker or be in another
00:26:56
company this give you the the the the
00:27:01
opportunity to feel much more than a
00:27:04
briak in the life in the in the in in
00:27:09
the in the worldall of a company no you
00:27:11
are you are a
00:27:13
promoter of a new model of society MH
00:27:18
where companies are real
00:27:21
citizens and they promote a new kind of
00:27:24
citizens of
00:27:26
citizenship and so and so for the
00:27:30
employees it it represent a challenge
00:27:33
because how how to be in one hand how to
00:27:37
say no and how to say no but I'm going
00:27:41
to remain you you have right
00:27:44
no
00:27:46
no how to say
00:27:48
no I'm very credible and continue be
00:27:53
confidence in the other hand then you
00:27:56
need you need uh to believe in this and
00:27:59
you need to uh
00:28:01
want uh and to trust that this is not
00:28:05
because is only an strategy is an
00:28:08
strategy of course this is uh something
00:28:12
that is is good is good for you and is
00:28:13
good for the society okay okay well Mr G
00:28:17
thank you so much uh for being with us
00:28:19
uh today and uh we wish you a lots of
00:28:22
success at your bank okay thank you
00:28:24
thanks a lot
00:28:28
[Music]
