Europe’s banking landscape is at a crossroads, and one bank is boldly leading the charge into the digital frontier. BBVA’s CEO, Onur Genç, recently emphasized the bank’s unwavering commitment to expanding its European footprint, particularly in Italy and Germany, through its innovative digital banking model. But here’s where it gets intriguing: while many banks are still grappling with digital transformation, BBVA is already reaping the rewards of its forward-thinking strategy.
In Italy, BBVA’s digital-first approach has been nothing short of remarkable. Celebrating its fourth anniversary in the country, the bank has not only doubled its initial customer targets but has also surpassed 800,000 clients—two years ahead of schedule. And this is the part most people miss: BBVA isn’t just growing; it’s aiming to become the primary bank for over one million Italian customers by 2026. This ambitious goal underscores the bank’s confidence in its ability to blend traditional banking trust with cutting-edge digital convenience.
Germany, a newer market for BBVA, has been equally promising. Despite being a late entrant, the bank’s performance has exceeded expectations, proving once again that its model resonates strongly with European consumers. Unlike neobanks, which often focus on niche services, BBVA offers a comprehensive suite of products—from accounts and loans to mortgages and investments—all delivered through an unrivaled digital experience. This hybrid approach is a game-changer, but it also raises a controversial question: Can traditional banks truly outpace neobanks in the digital race?
BBVA’s success isn’t just about geography; it’s about strategy. The bank’s 2025–2029 Strategic Plan prioritizes profitable organic growth, leveraging three key advantages: strong geographic diversification, dominant positions in low-leverage markets, and a well-established digital edge. For instance, in Spain, BBVA has consistently gained 50 basis points of market share annually in the commercial segment over the past five years. This growth isn’t accidental—it’s the result of strategic investments made long before digital banking became a buzzword.
What’s even more impressive? In 2024 alone, BBVA attracted 11 million new customers, with two-thirds acquired purely through digital channels. This highlights a broader trend: digital banking isn’t just the future—it’s the present, and BBVA is miles ahead of the curve.
However, Genç also shed light on the structural challenges facing Europe’s financial system. With only one European bank ranking among the world’s 20 largest by market capitalization, the continent’s banks need scale, investment capacity, and efficient regulation to compete globally. Banks play a critical role in Europe’s economy, providing nearly 80% of corporate borrowing—a stark contrast to the U.S., where only 25% of corporate borrowing comes from banks. Is Europe’s banking sector doing enough to bridge this gap?
Genç believes that scale will inevitably come, whether through mergers and acquisitions or market mechanisms. For BBVA, the foundation for continued expansion is already in place. The bank ranks number one in profitability and growth among Europe’s fifteen largest banks, a testament to its strategic vision and execution.
As BBVA continues to push boundaries, one thing is clear: its digital banking model isn’t just transforming the bank—it’s reshaping the industry. But here’s a thought-provoking question for you: As digital banking becomes the norm, will traditional banks that fail to innovate risk becoming obsolete? Share your thoughts in the comments—we’d love to hear your perspective!
