BBVA, the Spanish banking giant, is undergoing significant restructuring within its Corporate & Investment Banking (CIB) division aimed at enhancing its focus on innovation and technology integration. The bank has decided to incorporate its startup financing arm, BBVA Spark, under the leadership of Javier Rodríguez Soler, who oversees the division. This strategic move is set to bolster BBVA's commitment to supporting high-growth technology companies and venture capital funds.
Roberto Albaladejo has been appointed as the global head of strategy, industries, and cross-border business, reporting directly to Rodríguez Soler. His new role encompasses the strategic oversight of sustainability initiatives along with CIB operations, aligning BBVA Spark with the broader strategy aimed at digital advancement within the bank.
Since its inception in 2022, BBVA Spark has assisted over 1,500 startups across Spain, the UK, Mexico, Colombia, and Argentina, providing specialized financial products aimed at addressing the unique needs of these burgeoning businesses. The integration of BBVA Spark with CIB was motivated by the necessity to offer these companies strategic, long-term support geared toward their growth trajectories.
Meanwhile, Santiago Muguruza has been named to lead BBVA Spark. Previously, he directed BBVA's venture capital investments, and now he will head this business unit focused on fostering innovative companies and venture capital partnerships. The unit aims to support businesses at every stage of growth by offering adapted financing products, including venture debt—an option increasingly sought after by startups.
Further advancing BBVA's digital strategy, Alicia Pertusa will head the digital assets and blockchain strategy within the CIB division. Her objective will be to fortify BBVA’s position as a leader within the digital domain, identifying strategic opportunities to expand product capabilities and improve distribution channels, all the more significant as financial markets continue to gravitate toward technological solutions.
This restructuring takes place as BBVA seeks regulatory approval for its acquisition of Banco Sabadell, awaiting authorization from Spain's National Commission on Markets and Competition (CNMC). This marks the bank's second structural change since announcing the acquisition bid back in May. The reshuffle includes creating two new business areas focused on retail customers and corporate banking, both of which will report directly to CEO Onur Genc, underscoring the bank's ambition to streamline operations and maximize efficiency.
BBVA’s initiatives to integrate BBVA Spark and refine its investment banking strategies come at a time of heightened competition within financial technology, where the demand for innovative financial solutions has intensified. The bank's efforts coincide with broader market trends, not only enhancing its service offerings but strengthening its foothold as a pivotal player within the finance and technology sectors.
One notable aspect of BBVA Spark's success is its focus on supporting the Buy Now, Pay Later (BNPL) model. Recently, Aplazo, a rapidly growing BNPL platform, announced securing $35.5 million from BBVA Spark. This financing is part of Aplazo's aggressive expansion strategy, as the company seeks to capitalize on the growing credit demand among its customer base, which includes many individuals lacking traditional credit options.
Founded in 2020, Aplazo has raised over $100 million through equity and debt financing. With the recent credit line, the company aims to change financial access patterns throughout Latin America. Aplazo’s CEO, Ángel Peña, articulated the impact of this funding, indicating, "This new credit line from BBVA Spark is testimony to our commitment to revolutionizing financial access in Latin America." The platform uniquely allows consumers to split payments, enhancing affordability for users who may not have easy access to credit cards.
The BNPL market is projected to experience strong growth across Mexico, expecting to reach $4.56 billion by 2024, driven by shifts in consumer preferences toward flexible payment options. The growth rate is anticipated to remain strong, thanks to Millennials and Generation Z consumers increasingly opting for alternative payment methods.
With BBVA’s enhanced focus on digital integration and its commitment to nurturing promising startups through BBVA Spark, the bank is paving the way for notable advancements within the financial sector. The combination of innovative financing options and strategic partnerships is expected to create lasting synergies, propelling both BBVA and its associated startups to new heights within the rapidly changing market.