We explain the different reasons why the banking sector is being restructured.
Learn how bank restructuring affects SMEs.
The restructuring of the banking sector seems to have no end since it began to slim down its branch network in September 2008. At that time there were 45,707 bank branches in our country. This restructuring affects SMEs in particular .
Spain was and remains one of the countries with the most bank branches in the European Union. According to the Bank of Spain, in September 2020 there were still 22,909 branches finland email list in our country, despite the fact that in 13 years they have been reduced by half.
Banco Santander is leading the way in closing branches , to the point that it plans to close around 1,000 branches this year, leaving it with only 2,000. In addition, according to its restructuring plan, the closure of branches is accompanied by a redundancy plan for 3,600 employees and the relocation of another 1,500 workers. Santander already closed 1,150 branches in 2019 to eliminate duplications after the absorption of Banco Popular.
Other entities such as Bankia and Caixabank opt for the merger. The image of Bankia thus disappears, an operation that aims to reduce costs and improve the profitability of the new bank. In this way, it will be the largest group in Spain by assets and the tenth bank in Europe, ahead of Santander and BBVA.There are many and diverse reasons why banks are forced to restructure at an increasingly rapid pace.
They are unable to cover their operating costs with their net interest income. Banks have to reduce costs, since, with their current financial margin, for many their business is not profitable.
Adjust your office network to adapt your business model to an increasingly digital environment .
Change in multi-channel management strategy, giving priority to digital channels.
The economy collapsed and bad debts rose due to the pandemic caused by COVID-19 and the previous crisis that began in 2008 and lasted until 2014.
Most savings banks went bankrupt during the 2008 crisis and were absorbed by banks, reducing the services provided by these entities.
Accelerated digitalization of its customers , including older ones.
Negative interest rates , which reduce their margins.
Competition from big tech companies like Amazon, Google, Facebook and Apple.
Competition from Fintechs , which are stealing market niches.
Reduced size of branches . Spanish bank branches are the smallest in the EU in terms of the number of employees per branch, so we will have fewer, larger and digitalised branches.
Open banking and the liberalization of banking information , which facilitates financial intermediation for Fintech .
The restructuring of the banking sector will continue over the next few years, especially as long as we continue with negative interest rates and there is no recovery of SMEs.