Spanish bank BBVA has launched a new digital bank in Germany, putting payments at the center of its strategy with a 3% interest-bearing checking account, 3% cashback debit card, and flexible, card-based financing tools.
In a statement on June 26, the bank announced its payment-first model includes smart repayment features like Pay&Plan which allows users to split purchases into monthly installments up to 90 days post-payment, as well as one-click personal loans and the Dispokreditoverdraft facility.
BBVA Germany offers a range of free daily banking services, such as access to cash at 70,000 ATMs and cash withdrawal points at supermarkets, retail stores, etc., across Germany and other EU countries. Other services such as instant SEPA transfers, direct debits, and a digital account switching request services, are also provided.
“We’re bringing something new to Germany. A banking experience that combines the simplicity and convenience of a fee-free account, typical of digital actors, with the full range of products, reliability, and trust of a universal bank,” said BBVA CEO Onur Genç.
Operating as a fully-licensed bank, BBVA Germany offers IBAN accounts, covered by the European Deposit Protection scheme for up to €100,000
BBVA had previously been operating in Germany as a Corporate & Investment Banking (CIB) business only. The launch of the digital bank in Germany becomes the second in Europe BBVA has rolled out after launching in Italy in 2021.
“We are confident in the model we’re bringing to Germany because we’ve seen it succeed before,” Genç added.
“We believe German customers are ready for a fresh alternative that’s mobile-first, transparent, and backed by the strength and reputation of a global bank like BBVA.”
Europe is digital
Digital banking has become the predominant mode of banking over the last decade, whether it is customers using online banking apps from traditional banks, or migrating over to modern age digital banks such as Revolut, Monzo and now, BBVA.
While BBVA is a traditional bank, it has identified the need for modern day solutions on dedicated digital-facing platforms that process payments and customer requests faster, as well as additional perks.
Santander has made a similar move by launching its standalone digital bank Openbank, which has launched in European countries such as Germany, Portugal and the Netherlands, as well as launching in the US and Mexico more recently.
Attempting to establish itself as a leader in digital banking and differentiate itself from its competition, BBVA has designed key functions for an improved user experience, such as enhancements to payment processing and card management to perform secure payments and implement smart spending tools.
One of the bank’s flagship products is the launch of the first cards in Germany with no printed data and CVV, which generates a unique security code to provide enhanced security in digital payments.
“We believe that the backing of a fully licensed, European-based global bank with more than 80 million customers will be key to building the trust that German consumers need when choosing a banking partner,” added Murat Kalkan, Head of Digital Banks at BBVA.
