The leading banks over the past 12 months from the Americas.

 
 
 
 

Argentina, Santander Rio 

Over the past two years, Argentina has endured fresh political tensions and economic recession. There have been presidential elections, which in October chose a Peronist candidate over the incumbent pro-market leader; and there is a rescue package by the International Monetary Fund – its largest ever – to repay. 

Against this challenging backdrop, Argentine banks did not fare badly. Santander Rio, in particular, impressed not only through its steady financial results but also with its focus on innovation. Its strong presence in the loan market, both retail and corporate, helped boost profitability as well as assets size, and secured a return on equity just short of 30%. 

The bank’s focus on modernising products and services also supported such results. For example, by the end of 2018 it had rolled out a faster, simpler digital onboarding system across all its branches, and created a system to open accounts for small businesses. It also created a new digital auto loan system and offered a dedicated online customer care channel to prime customers.

Santander’s commitment to its digital strategy was highlighted by its appointment of a chief executive for the soon-to-be-launched Argentine operations of the group’s digital venture, OpenBank, recruited from Google Argentina. This came alongside other senior appointments from the technology sector.

Chief executive Sergio Lew says that The Banker’s award recognises Santander Rio’s work “but at the same time, represents a challenge for us to [strengthen our] focus on clients [and] accelerate our digitalisation, with the final aim of helping people and businesses prosper”.

Bahamas, Scotiabank Bahamas

Scotiabank Bahamas not only improved financial results over our awards review period, it has expanded the breadth and depth of products offered to its customers. Although some of these improvements may seem small in absolute terms, they are relevant in the context of the local market. For example, the simple introduction of free wi-fi in all branches has made it easier for branch staff to explain the benefits of online and mobile banking to customers accustomed to more traditional forms of transactions. Customers now also have the option to book a digital banking education session in branches.

Scotiabank Bahamas also added new features to its digital platforms: a customer’s credit card balance is now immediately updated after a transaction, helping to better manage finances; customers can also top up their mobile phone credit through the app or the online platform; electronic statements include images of paid or received cheques, improving clarity for users; and customers now receive real-time notifications on account activity.

Scotiabank Bahamas is particularly proud of this last addition as real-time transaction notifications are coupled with specific security alerts. These include alerts that are related to debit and credit card authorisation requests both in store and for online purchases, and alerts regarding access to a customer’s online account from a new device, or about any changes to the account or transfer recipients and payees. The bank has been working on these new services across 2018 and 2019.

In addition to these improvements, in 2019 Scotiabank Bahamas simplified the way it sells credit cards and term loans by pre-authorising existing customers for up to a certain limit and promoting the offer. Should customers wish to accept, the loan or the credit card are made available within three and seven days, respectively, speeding up and smoothing over a more traditional application process for both bank and customer.

In 2018, the bank’s net profits were 29.4% higher than the previous year, confirming a steadily rising path.

Bermuda, The Bank of NT Butterfield & Son

Through a series of acquisitions, The Bank of NT Butterfield & Son has expanded its market presence in the Caribbean and beyond.

In 2018, it completed the acquisition of Deutsche Bank’s global trust solutions business, which expanded Butterfield’s existing trust business in the Cayman Islands, Guernsey and Switzerland, and added a Singapore office to the Butterfield trust network. Earlier in 2019, it also completed the acquisition of another of Deutsche Bank’s businesses, its custody operations in the Cayman Islands and the Channel Islands, which beefed up its existing corporate banking portfolio in the Caribbean and gave it access to the Jersey market. 

Also in 2019, it bought the Guernsey-based banking business of ABN Amro, which specialises in banking services for financial intermediaries and institutional clients. Butterfield intends on continuing to take advantage of others leaving the offshore wealth management market with potential future acquisitions. It sees growth potential particularly in the Channel Islands.

The bank expanded in its home markets too by improving its digital offering to retail and private banking clients. In Bermuda and the Cayman Islands, it updated its online platform and mobile app with the aim of providing a more user-friendly interface, and it added services such as information on pending credit card transactions and the visualisation of customers’ full financial picture. The bank plans to extend these services to corporate customers by the end of 2019.

Debit cards were upgraded with chip and PIN and contactless technology in 2018 with a plan to make the bank’s Mastercard credit cards contactless in 2019.

Profitability has also grown, with 2018 net profits more than one-quarter higher than the previous year, and a rising return on equity of 23.1%.

Bolivia, Banco Nacional de Bolivia

Even before the violent protests against the government towards the end of 2019 – leading, ultimately, to the resignation of president Evo Morales – Bolivia was a challenging market. 

The country’s economy has grown under the near-14-year leadership of Mr Morales, mainly thanks to significant public investment. However, banks’ role in this growth has been highly regulated. Legislation requires banks to direct a proportion of total loans towards the productive and housing sectors, as well as imposing fixed interest rates. Banks are also obliged to have a presence across the whole country through either branches, ATMs or service points.

Despite these impositions, the Bolivian banking sector has grown and remained profitable, both of which apply to Banco Nacional de Bolivia. It has also been able to innovate and support local communities, by providing drinking water to families living in extreme poverty and initiatives for children with special needs among its activities.

Banco Nacional de Bolivia has continued to improve its mobile app, BNB Mobile, by adding new functionalities such as the ability to generate QR codes (which can be used to pay or receive money by scanning them or sharing them via e-mail or via messaging services). Through its digital laboratory BNB Lab, the bank has sought to transform data on interactions with customers into new or improved products and services. Customers also have the opportunity to offer feedback through the lab.

“In a challenging and fluctuating banking environment, we [aim to connect] with our clients through innovative and efficient services. In this context, digitalisation and digital transformation are core assets,” says Pablo Bedoya, president of the board of directors of Banco Nacional de Bolivia.  

Brazil, Banco do Brasil

As one of Brazil’s largest lenders, Banco do Brasil’s actions tend to have an impact on the local market. It is therefore commendable to see the bank taking a stance on the importance of gender balance and diversity in the workplace in a country where indicators about women’s representation in senior positions, particularly in finance, are less than stellar.

In its award submission for The Banker’s Bank of the Year award, Banco do Brasil says it believes that gender equity “generates value in the corporate world and provides returns to investors”. In 2018, it launched an equity fund, BB Ações Equidade, that invests in listed companies that have developed policies that support women in the workplace and that have signed up to the UN Women Empowerment Principles

Additionally, the bank’s asset management division, BB DTVM, looks at not just gender but broader environmental, social and governance factors in its investment analyses. These efforts stretch from evaluating the composition and independence of corporate boards of directors’ and managers’ compensation to employee turnover and family policies, to the environmental impact of businesses.

Meanwhile, the bank performed well in 2018, as net profits continued to grow and the return on equity ratio was a healthy 13.9%.

Banco do Brasil also continued to invest in its digital strategy, which led to the creation of Banco do Brasil Advanced Lab, an incubator based in Silicon Valley, California; the BB Startups platform, which seeks to engage with entrepreneurs; and an open banking initiative, the BB for Developers initiative, where users can access the bank’s application programming interfaces.

“The success of our strategy is measured by the growth of our customers’ satisfaction – [customers who] can access a bank that each day is more digital – and by the consistent improvement of our efficiency and profitability to the benefit of shareholders,”  says Banco do Brasil chief executive Rubem Novaes. 

Canada, Scotiabank

Scotiabank strengthened its position across key markets in 2018, both in its products and its geographical reach. It acquired two Canadian firms, wealth manager MD Financial and investment firm Jarislowsky Fraser, which boosted its offering to existing clients and brought valuable new ones: 110,000 individuals with the MD Financial deal; and 500 new institutional clients through Jarislowsky Fraser. 

As a result, the bank says it is now the third largest active money manager in Canada and the country’s top private investment counsel.

Scotiabank has also done well abroad. In Chile, it acquired the local operations of BBVA, making the group the third largest privately owned lender in the country. Not all of its foreign operations grew, however, but it was following a group strategy that focused efforts in certain areas and away from others: for example, selling its insurance and pension business in the Dominican Republic in 2018 while pursuing the acquisition of local bank Banco Dominicano del Progreso that was completed in 2019. 

The bank’s digital efforts are also noteworthy, and include a cloud development platform, Plato, which is intended to be both a platform for its digital products and a tool for the smooth migration of its apps to the cloud. Scotiabank’s digital efforts also include a new mortgage product, eHome, which the bank says is the first fully digital product of its kind in Canada, from the application process all the way to customer care.

“Our bank’s success comes down to our people,” says Scotiabank chief executive Brian Porter. “Every day, our team dedicates themselves to executing our strategy and delivering for our customers, shareholders and all of our stakeholders across the Americas and around the globe. We’re proud of this tremendous accomplishment and remain focused on connecting Canada to the world.”

Cayman Islands, Butterfield Bank (Cayman)

Part of the Butterfield banking group, Butterfield Bank (Cayman) has benefited from the group’s commitment to wealth management, which it pursued through a series of recent acquisitions that resulted in a stronger presence in the Cayman Islands as it completed the purchase of Deutsche Bank’s local trust and custody businesses in 2018 and 2019. It also benefited from its parent’s investments in technology as it upgraded its online platform and banking app, and added chip and PIN and contactless technology to its debit cards. All of this helped set Butterfield apart from the local competition.

Furthermore, in 2019 Butterfield launched a new customer management portal that aims to simplify processes as well as leverage customer data to provide a better service and more pertinent products. The portal also helps to save costs and manage regulatory requirements. Butterfield believes that these measures will make it an even more competitive player.

There were also developments more specific to the Cayman market. Again in 2019, the bank opened a new banking centre in the Camana Bay area which, in addition to full banking services and ATMs, offers the use of a meeting space for the bank’s wealth management, corporate banking and lending teams. The new centre also offers self-service banking areas for customers. 

Financially, Butterfield Bank (Cayman) is in good shape. The latest available full-year results show a 24.81% increase in net profits in 2018 on assets 14.28% bigger than the previous year. The return on equity ratio was 35.49%, steadily rising over the previous few years, and Tier 1 capital also expanded at a pace nearly on par with assets. Its cost-to-income ratio improved to a rather low 39.51%, according to the bank’s data.

Chile, Santander Chile

As part of its digital focus, Santander Chile ramped up its investment in cybersecurity after attacks directed at a large competitor shook the local market in 2018. In total, it earmarked $25m to be spent on cybersecurity.

As a result, Santander began a comprehensive plan that led to customer and employee education programmes, the upgrade of its ATM network, and the replacement of magnetic strip cards with chip and PIN equivalents. Through its digital wallet, says Santander, it became the first Chilean bank to launch contactless payments through smartphones and chose an underpinning technology that it believes better safeguards customer data. 

The bank also continued to work on improving back-office efficiency, which led to significantly faster responses to new product requests and speedier delivery of credit and debit cards. Most of Santander’s branches now have card printers and cards can be activated on the spot. It has also nearly completed the replacement of obsolete IT systems, further reducing daily system crashes and corresponding downtime. In April 2019, Santander Chile switched to a new card payments network, which it believes will lead to welcome competition in this space, and it has been developing its own point-of-sale system with a view to a 2020 launch.

While digital attacks and network changes made for a lively period, Santander Chile’s financial data remained reassuringly stable. Return on equity in 2018 stayed at just over 19%, as it was the previous year, while assets and Tier 1 capital both expanded by a good few percentage points.

Chief executive Claudio Melandri says: “[The Banker’s award] is not only a source of pride but also a recognition of our strategy, which places all of our stakeholders at the centre of our business. We will continue to do our best to be a more responsible bank, every day, and to contribute to the sustainable growth of Chile.”

Colombia, Banco de Bogotá

A name with a long tradition, Banco de Bogotá is keen to keep up with digital innovation. It launched a ‘virtual bank’ based on cloud technology in 2018 to replace the bank’s online banking offering with the aim of improving both its service to customers and reducing costs for the bank. Banco de Bogotá is particularly pleased with the speed at which it was able to bring the product to market. It is even more pleased by how the market received it – the bank says that the portal led to a substantial improvement of the net promoter score, which measures customers’ willingness to recommend the service to others, supporting, therefore, Colombians’ wider perception of Banco de Bogotá as a digital bank. The project also resulted in striking cost savings.

As part of its digital strategy, Banco de Bogotá launched specific online services and products too, such as a new online mortgage application process that customers can complete from any digital device without the need to present paper documentation and which has a speedy approval process. The bank proudly states that nearly three-quarters of approved customers receive confirmation in less than 10 minutes, with the remainder needing to wait only up to two days. This was made possible by relying on credit bureau information and by accessing such data through online channels, drastically reducing waiting times. Applicants were spared the need to present physical copies of recent payslips as a proof of income by accessing data held by the national social security system. This is an important innovation for Banco de Bogotá and a solution it delivered thanks to its partnership with a local fintech that taps into the government data and can provide Colombians’ payroll history.

Banco de Bogotá’s success is told by its 2018 financial data too: a 46.8% net profit growth, a healthy 17.1% return on equity and an improving 47.5% cost-to-income ratio.

Costa Rica, BAC Credomatic Costa Rica

Part of a wider Central American specialist group, BAC Credomatic Costa Rica has made progress both in terms of assets growth and in the expansion of its digital products and services. 

Among these products are a cash management platform for corporate clients and its e-commerce solution for small and medium-sized enterprises, Compra-click. Via a ‘button’ that can be added to social media and other digital channels, the latter helps sell products easily and more securely while reconciling transactions with companies’ inventories. In addition to this is the upgrade of the bank’s Mipromo digital platform – from which cardholders can access merchants’ promotional offers, and which now offers geolocation tools – and its mobile sales platform for businesses, where volumes grew by 25% in 2018.

Supporting the bank’s products are technology developments that include the launch of a chatbot; the creation of cloud-based forms to provide a smoother service to online clients; and a new design for the user interface of all the bank’s digital platforms, which unifies its corporate image and reduces delivery time for future developments. 

The bank’s financial results for 2018 were strong too, with growing net profits and improved return on equity.

“Our relentless commitment to continuously enhance our customers’ experience, a strong focus on innovation, being agile and becoming more digital, all allows us to offer a more efficient and personalised service. This was precisely the vision we [had for] our new banking centres across the region, which have been designed with the sole purpose of listening and attending to our customers’ needs,” says Rodolfo Tabash, president and CEO of BAC Credomatic, which also has operations in other parts of Central America and the Caribbean. 

Dominican Republic, Banco Popular

In a country that is exposed to extreme weather events, planning for a sustainable growth is crucial. The Dominican Republic’s Banco Popular has showed resolve not only in tackling challenges more directly affecting banking, such as technological change, but also in addressing environmental concerns that have an impact on the country’s future. 

Preserving the environment and the country’s shores has direct economic consequences on the Dominican Republic, as tourism remains both a key contributor to growth and a strong recipient of the bank’s loans.

On the technology front, Banco Popular launched a digital centre in 2018 (in what it says is a national first), where customers can access smartphones, tablets and new ATMs to access banking services. The centre also offers spaces for financial education and to hold talks on entrepreneurship. Internally, Banco Popular also launched a security operations centre to improve its cyber defences and monitoring.

On the environmental front, Banco Popular continued to support Plan Sierra, a country-wide forest management programme. It has continued to install solar panels on its real estate, which now includes 42% of its branches and boosts the bank’s ability to generate clean energy. It has strengthened its recycling efforts and continues to work with schools to award eco-efficient projects.

The bank is committed to reaching customers across the country, whether through branches, ATMs or its growing network of agents. It also runs initiatives to reward deserving entrepreneurs and young students through competitions and scholarship programmes.

Banco Popular backs this up with some notable financial data. In 2018, net profits grew by just under 34%, continuing a trend of the past few years. Return on profit was nearly 20% while cost to income was an improving 62.1%.

Ecuador, Produbanco

Becoming a more digital bank means not only investing to provide new products and services but also working to help both customers and staff transition to new channels. 

In 2018, Produbanco launched a new type of branch designed to help customers transition from personal interaction with branch staff to making transactions through digital channels. The digital branch is equipped with kiosks where customers can access online services and speak to staff via video call for advice on products or simply to lodge a complaint. Produbanco proudly says it was the first bank in Ecuador to create such a space. It also introduced a new customer intelligence platform so that staff can access pertinent customer data and create better targeted marketing campaigns where results can be measured and analysed.

For customers accustomed to its digital products, Produbanco improved its channels to provide a smoother and faster experience. It upgraded its mobile app with fingerprint readers and biometric recognition, and with better functionalities for payments and checking credit card balances and transactions. It improved payment services by introducing QR codes and the ability to make payments outside of the app through links sent directly to customers’ mobile numbers.

The bank also improved its cash management services by creating a dedicated app that led to faster processing times of payment instructions, inquiries over businesses’ consolidated positions, local and international transfers, payroll payments and invoice payments, among others. 

Produbanco’s commitment to environmental issues was noteworthy, as the bank continues to publicly report on the sustainability of its business model and its efforts to reduce its contribution to highly polluting activities. Financially, the bank was in good shape in 2018, with growing assets and Tier 1 capital, as well as improving profitability.

El Salvador, Banco Agrícola

A commitment to financial inclusion, its continuous push to modernise, and a steady performance have all helped Banco Agrícola scoop the 2019 country award for El Salvador. 

Banco Agrícola’s total assets were up by 4.1% in 2018, its net profits were healthy and efficiency improved, with its cost-to-income ratio falling to 48.8%. 

According to the World Bank’s Findex database, only 30.4% of Salvadorian adults have access to a formal banking service. Banco Agrícola has made some important strides to improve the situation with its recently launched digital savings account, Cuenta Fácil (Easy Account). Account holders can receive remittances, make payments and withdraw cash from Banco Agrícolas ATMs. The account operates solely via a smartphone app without the need for customers to visit a physical branch. No minimum deposit is required. 

Meanwhile, the bank has continued to forge ahead with its Omnichannel project, completing a total revamp of its mobile banking platform to create a more intuitive user experience and differentiate it from competing solutions. Back-end services were also re-engineered to boost the platform’s response time. The redesign garnered an 80% increase in active users.  

Further efforts have been made to modernise the bank’s payments channels, which include the automation of its Swift and host-to-host solutions, and their addition to the bank’s virtual branch. Banco Agrícola also introduced its Business app, the first in the country, which allows companies and government institutions to authorise and apply payments from a mobile device. 

“At Banco Agrícola, our clients are at the centre of everything we do. For more than 60 years, our purpose has been to contribute to making people’s dreams come true and serve as an ally to El Salvador’s positive traits, by being there for our clients whenever and however they need us,” says Banco Agrícola CEO Rafael Barraza.

Guatemala, Banco Industrial

Banco Industrial is the largest lender in Guatemala and accounts for about one-quarter of the country’s banking sector. In 2018, the bank saw its net profits increase by 10.7%, while Tier 1 capital and total assets grew by 13.6% and 8.9%, respectively. Banco Industrial has maintained a consistent growth trajectory, reflected in a total assets compound annual growth rate of 8.4% from June 2014 to June 2019.    

Banco Industrial continues to enjoy national dominance in corporate lending, which represents 70.9% of the bank’s total loan portfolio and 39% of the Guatemalan market. In 2018, the bank reduced its non-performing loans ratio to 0.83%. 

Banco Industrial plans to increase its retail banking market share by expanding its already extensive network, comprising of 3689 points of service, into rural areas through new branches and third-party banking agents. With low retail banking penetration, underscored by a loan-to-gross domestic product ratio of 32%, Guatemala offers great potential for the advancement of financial inclusion. 

The bank has been making significant investments into its digital transformation strategy. Banco Industrial utilises a Whats-App enterprise account to enhance interaction between its clients and customer service representatives. Its consumer banking mobile app, Bi en Línea, has received upgrades that include facial recognition log-in functionality and the facility to transfer money to any mobile phone in Guatemala.  

In addition, the Actívalo Bi service, launched in partnership with VisaNet, facilitates a pre-authorised line of credit that allows companies to improve their immediate liquidity positions.

“The main ingredients for our success are its management team and staff, the culture of the bank and our customer service excellence. These ingredients work well together because they are based on our values of service, innovation, integrity, teamwork and love of the country,” says CEO Diego Pulido Aragón.

Honduras, Banco Ficohsa

Banco Ficohsa has clinched a competitive Honduras country award thanks to its solid financial performance and its commitment to bolster cyber security. The bank enjoyed a strong 2018, with net profits up by 26%, while total assets and Tier 1 capital grew by 12% and 5%, respectively. Its return on equity increased to 13.4% and its non-performing loan ratio was reduced to 1.33%.

According to a report released in September 2018 by the Organisation of American States, 37% of the banks in Latin America and the Caribbean had been victims of successful cyber attacks in the past year. Banco Ficohsa is taking action to avoid the same fate.

With a total investment of $1.3m in 2018, Banco Ficohsa has fortified its corporate network by securing more than 5500 of its internet-capable devices, which includes laptops, workstations and servers. An anti-phishing service searches for the illegitimate use of the bank’s logo and branding on the internet, while machine-learning technologies are being leveraged to guard against possible attack vectors.  

The bank’s approach to cybersecurity is based on a security management programme developed by Verizon, a US-headquartered multinational telecoms conglomerate. Quarterly reviews are conducted to continuously revaluate Banco Ficohsa’s resistance to the ever-evolving cyber threat landscape, with an emphasis on protecting the bank’s employee and client data. 

In May 2019, Banco Ficohsa was the first bank in Central America to join JPMorgan’s blockchain-powered Interbank Information Network (IIN). Currently 365 banks are signed up to IIN, which aspires to facilitate cross-border payments across all regions and in every major market. Joining the network is an important step for Banco Ficohsa, as it moves ahead with acquiring new technologies that boost business and enhance security. 

Jamaica, NCB Financial Group 

A leading player in its home Jamaican market, NCB Financial Group has successfully expanded across the Caribbean region too. Earlier in 2019 it completed the purchase of an additional share in Trinidad and Tobago’s Guardian Holdings, obtaining a controlling stake of 62%. NCB had eyed the deal more than a year earlier, as the Trinidadian insurance, pension and asset management firm complements its offering and comes with a network spread across 21 territories in the English and Dutch Caribbean.

Of note is also NCB’s new fully digital, automated initial public offering (IPO) subscription service, which avoids the traditional manual application process and allows clients to transact in a simple manner online. The solution came on the back of NCB’s own experience of the problem. Appointed as the arranger and broker on Jamaica’s largest ever IPO – the listing of food manufacturer Wisynco in late 2017 – NBC was subsequently confronted with more than 8000 applications. Processing them was an “administrative headache”, it says.

The bank can now avoid similar headaches for both itself as well as its investment clients, who previously would also have had to go through the equally cumbersome paper-based application process. The bank sought to simplify the experience of credit card customers by upgrading its card payment platform, and has improved the offering of online mortgage services through a dedicated portal.

“The key ingredients of our success continue to be innovation, expertise and strength,” says NCB Financial Group chief executive Septimus ‘Bob’ Blake. “We listen to our customers, and innovate to meet their needs. We invest aggressively in technology and equip our team to deliver expert service. And we forge strategic alliances that strengthen our ability to help our customers to [live] their best lives.” 

Mexico, BBVA México

As a banking group often ahead of the digital curve, BBVA has maintained its focus on technology and innovation across its international operations, and its Mexican arm, BBVA México, the winner of the country’s Bank of the Year award, is a great example of this. 

The bank has continued to develop its digital offerings, having launched more than 70 new digital products in 2018 alone – from its general app to the mobile wallet, to its ‘one-click’ pre-approved loans channel, to the online insurance app, and a child’s app for their own digital account that parents can monitor. These products have helped both cross-selling and, therefore, revenue growth, while also boosting customer loyalty. 

Investment in artificial intelligence has led to the addition of a virtual assistant to WhatsApp interactions with customers, and the group’s Open Talent contest is designed to help BBVA keep its innovative edge by scouting for bright fintech start-ups. The contest has already borne fruit in Mexico, leading to the acquisition of OpenPay in 2017. Looking at its net promoter score, which indicates customers’ willingness to refer products and services to others, BBVA México considers itself a leader in the local market.

“There are many factors to BBVA México success,” says vice-president and chief executive Eduardo Osuna Osuna. “If I [had] to highlight only three, I would choose our obsession with putting our clients first; our being able to attract, develop and keep the best people; and the way in which we constantly challenge ourselves to deliver digital and innovative products and better understand clients’ needs through data.”

The bank’s financial data is impressive too: a growing return on equity, at 25.4% in 2018, was coupled with decreasing cost-to-income ratio and low non-performing loans. Assets have grown over the past few years, as has Tier 1 capital, and at faster rates than assets, making BBVA México not just a more profitable but also a better capitalised bank.

Nicaragua, Banco de la Producción

Despite a political crisis that shrank Nicaragua’s economy by 3.8% in 2018, Banco del la Producción (Banpro) managed to maintain its leading position in the country. Sound risk management, a business model that focuses on sustainability, technology upgrades and new product launches have all helped the bank weather multiple economic shocks. 

To foster sustainable practice and generate growth, Banpro is proactive in assisting its clients to identify environmental and social risks to their businesses. Furthermore, Banpro aims to add wider economic value by seeking out and offering its services to companies that act as critical links within supply chains. This strategy has produced a market-leading loan portfolio of $1.2bn as of March 2019, while its non-performing loan ratio is the lowest in the country at 1.9%. 

The bank has financed almost $90m in green loans. Renewable energy facilities generating 42 megawatts have been installed through Banpro’s funds, along with efficient irrigation projects that have reduced water wastage. In addition, coffee plantations have been cultivated that not only benefit the economy but also capture 80,000 metric tonnes of atmospheric carbon dioxide per year.   

In 2018, the bank launched Banpro Chatbot, one of the first automated financial assistants in Central America to use natural language processing technology. It can answer questions about the bank’s products and services and includes a geolocation system that gives the customer directions to the nearest branch or ATM.  

Nicaragua’s increasing inflow of remittances prompted Banpro to develop Remittance Express, an account designed to promote financial inclusion among the country’s largely unbanked population. Its launch was complemented with a financial education programme, and nearly 20% of the programme’s participants opened accounts. Through this, Banpro obtained more than $900,000 in deposits and secured a growth opportunity.  

Panama, Banco General

One of Panama’s largest and most profitable banks, Banco General has shown prudent management and impressive initiatives to support the local community. While shareholders appreciate its stable and healthy return on equity, which has remained in excess of 20% for the past three years, its various initiatives to support more broadly Panama and Panamanians impressed the judges.

Banco General proudly notes how it includes environmental and social factors in its risk management systems – something it began doing a decade ago. It was also an early signatory to the UN Environment Programme Finance Initiative, along with other initiatives it joined to strengthen its ethical standards and corporate social responsibility.

The bank is involved in the construction of a new school, Escuela San Pedro Nolasco, in a fast-growing area of Panama that is considered to be of social risk. The school cafeteria, which serves meals to 200 young children, was completed in 2018, and work on the infrastructure for the middle and high schools started in 2019.

Banco General also created a product for new customers and, specifically, people new to the banking system. This is a simplified savings account that while complying with local regulation and know-your-customer practices allows for a quick sign-up thanks to technology such as biometric recognition that validates identification. The authorisation process is completed through an app, which customers can later use for their banking services.

Other products have boosted the bank’s bottom line. Following Banco General’s decision in 2018 to include insurance products as a core activity of its three-year strategic plan, it has launched its first insurance product as part of its consumer banking offering, aimed at providing affordable life insurance coverage to the non-affluent segment, which represents 80% of the bank’s customer base. This resulted in monthly sales of more than 1400 life insurance policies, as well as general plans to expand its insurance offering further.

Paraguay, Sudameris Bank

Investors that value environmental, social and corporate governance (ESG) factors end up creating a virtuous cycle for the companies they invest in. Equally, businesses attuned to ESG factors will attract these like-minded investors. This has been the case for Sudameris Bank, where Dutch development bank FMO has been placing increasing volumes of capital over the past two years. FMO, along with many of its Dutch peers, is sensitive to, and experienced in, sustainability. 

Sudameris, meanwhile, has been vocal in the local market about the importance of environmental matters, and is planning to launch green products in 2020. Through two transactions in 2018 and 2019, FMO bought a 15% stake in Sudameris. The Paraguayan banks says this has provided it with solid funding as well as know-how in ESG expertise. 

Sudameris also poured accumulated earnings into its Tier 1 capital, resulting in an overall significant increase of 26% in 2018. Sudameris’s profitability also grew, with net profits 40% larger than in 2017, with return on equity also rising by 16.2%. 

A larger market share in the loan sector contributed to Sudameris’s results, as did the creation in 2019 of an automotive leasing product. After a long gestation, Sudameris launched its auto leasing in partnership with eight of the country’s largest automotive dealers, enabling it to offer a tax-efficient financial instrument for retail customers, businesses and public sector customers.

By partnering with a local Paraguayan fintech, Sudameris also improved its digital offering. The bank has been working to replace its existing online platform with three more focused channels: a new online channel, a mobile app to serve retail and small businesses, and a dedicated digital desktop tool for larger corporate clients.

Peru, Interbank

Peru’s leading banks have been ramping up their digital efforts in recent years, and Interbank provides a good example of how such efforts are paying off. The number and frequency of the bank’s digital interactions with customers have significantly grown and nearly all of its products are now available through a digital channel. 

As of the first quarter of 2019, customers that interact with the bank solely through digital channels represented more than one-fifth of total retail customers – a ratio that has more than doubled since 2016. Digital channels are also used much more frequently for sales and self-service transactions, accounting for just under one-third of interactions.

To ensure a steady pipeline of fresh solutions, Interbank has broadened its agile working methodology to a significantly larger number of teams, beefing up volumes of new ideas and speeding up times in which it can bring new products to market.

The success of the bank’s digital strategy is reflected in its latest financial results. Net profits went up by 15.3% and return on equity was a healthy 21.3% in 2018. Of note is also the growth of the Tier 1 capital, which has consistently expanded at a much faster rate than asset growth.

Future plans at the bank include developing a new digital platform based on open technologies and application programming interfaces, improving cloud services and focusing on cybersecurity.

“The focus of our strategy is based on deep analytics and the digitalisation of our value proposition,” says Interbank chief executive Luis Felipe Castellanos. “Our purpose revolves around [empowering] people and enterprises to achieve their dreams [as they] reach financial well-being. Organisational culture and diversity, a deep knowledge of Peruvians, digital-first solutions and innovation are key elements for us.”

Puerto Rico, Banco Popular de Puerto Rico

Two years since Hurricane Maria hit Puerto Rico, the US territory and its banks are still grappling with its painful aftermath. At the beginning of 2018, just a few months after the natural calamity brought destruction to the island, Banco Popular de Puerto Rico was looking at an uncertain future as the population faced a humanitarian and economic crisis. By the end of that year, at least in financial terms, things began to look more stable, if not hopeful. Popular’s net profits for 2018 were more than double the previous year, as was the return on equity ratio. Assets and Tier 1 capital also grew, while non-performing loans remained stable and comfortably under 3%.

As others reduced their exposure to the territory, the bank even managed to expand, completing the $2bn acquisition of auto and auto-related commercial loans from Wells Fargo’s local auto finance business. The transaction expanded Popular’s auto loan portfolio as well as its origination team, and brought in 30,000 new customers. The auto loan segment, the bank says, is now one of the country’s fastest growing and a significant contributor to Popular’s overall net income. 

Popular is also proud of its mobile banking services, which include a withdrawal service (part of its mobile app) that does not need a debit card to use cashpoints and can be used to transfer money to people that do not have a bank account.

“The perseverance of our employees, their drive to become a better organisation, every day, has enabled Popular to achieve consistent growth and realise shareholder value,” says Banco Popular de Puerto Rico chief executive Ignacio Alvarez. 

“Leveraging our strong foundations, we are determined to grow our franchise in a sustainable and profitable manner, embrace technology to simplify our operations, and enhance customer experience and prepare for the future by strengthening our controls and ensuring we have the talent with the necessary skills to continue to thrive.”

Saint Lucia, 1st National Bank St Lucia

A proud local lender, 1st National Bank St Lucia’s stellar financial performance and its continuous efforts to grow its customer base have secured its victory as the Bank of the Year in Saint Lucia. In 2018, net profits surged by 180%, while total assets grew by 14% to $283.3m. Return on equity increased to 11.8%, up 7.42 percentage points from 2017, and its non-performing loan ratio fell to 8.65%. 

With an eye on expansion, the bank has taken bold steps to refocus its business model from primarily a retail banking institution into becoming one of the island’s major corporate banking players. A corporate credit assessment department was created to improve loan adjudication for large commercial credit facilities and emphasis was placed on forging new corporate relationships with an extensive marketing drive. 

The efficacy of these measures was tested when the bank was invited by Saint Lucia Electricity Services to bid for the provision of loans to construct a 3-megawatt solar farm. 1st National Bank St Lucia saw off stiff competition from international banks to provide the $7.41m financing for the project. At the end of 2018, the bank’s corporate loan portfolio grew by 42% to $99.4m.

Located within a hurricane belt, Saint Lucia is prone to natural disasters. Recently, 1st National Bank St Lucia has invested heavily in the virtualisation of its physical server infrastructure, boosting its capacity to remain operating in the aftermath of a hurricane. Less reliance on physical hardware has also significantly reduced costs and staff hours spent on server maintenance, allowing for resources to be redistributed to new business initiatives that can drive revenue. 

“We continue to recognise and find creative ways to mitigate the challenges of being an indigenous bank. We are committed to greatness and transitioning from good to great, and always remembering that strategy without execution will get us nowhere,” says CEO Johnathan Johannes.

Trinidad and Tobago, Scotiabank Trinidad and Tobago

In 2018, Trinidad and Tobago finally emerged from a dire recession, in which banks endured four years of negative growth. The country’s Bank of the Year, Scotiabank Trinidad and Tobago, remained a strong player, however, strengthening its position among its peers as economic conditions began to improve. 

It retained a high level of profitability in its 2018 figures, shown by a return on equity of more than 16% and net profits marginally larger than in 2017, while its cost-to-income ratio was just over 40% and non-performing loans were a reasonably low 2.34%.

Behind these results is a firm emphasis on technology, which helped boost both profitability and efficiency at Scotiabank Trinidad and Tobago. The number of customers using digital channels is increasing rapidly, allowing the bank to provide a faster and cheaper service. 

As part of its digital strategy, in the 18 months to June 2019, Scotiabank Trinidad and Tobago opened its second digital branch in the country and introduced a new type of ATM, with a fresh design and a touch screen. It launched an alert service that notifies customers of transactions in real time, so security issues are spotted quickly, and provided its corporate customers with access to the cash management portal through a mobile app, the first in the country, according to the bank. 

Beyond product innovation, Scotiabank Trinidad and Tobago is keen to highlight its efforts to build trust and a solid relationship with customers. Senior vice-president and managing director Stephen Bagnarol says: “Our success is undoubtedly linked to our mindset and core values of respect, integrity, passion and accountability, which guide all our interactions. Along with our strong compliance practices, these values enable us to build trust, thereby deepening relationships with our customers and communities while continuing to drive our digital transformation.”

Uruguay, Banco Itaú Uruguay

Uruguay has become a profitable market for Itaú Unibanco, the Brazilian parent of Banco Itaú Uruguay. Based on the latest available financial data, Banco Itaú Uruguay – winner of the country’s Bank of the Year award – secured the highest return on equity in the local market in 2018, with a ratio of 29%, and its net profits were more than twice the size of the previous year. Its Tier 1 capital grew too, at double the pace of the growth of assets, while its cost-to-income ratio improved by seven percentage points.

The bank remains a leader in the domestic credit card market and has broadened its appeal to Uruguayans by launching new products. Notable among these are: a new platform to open bank accounts online or through customers’ smartphones; a new functionality on the bank’s app that allows customers to deposit cheques by taking a digital picture of the paper slip; and a new solution that allows money to be transferred via messaging chats, such as WhatsApp, which lets users access the bank app without leaving the messaging platform. 

The messaging solution, Teclado Itaú, was developed with a local start-up, and Itaú says it is keen to continue working with new companies. It has renewed its commitment to Sinergia Co-work, a co-working space that created an incubator programme where local entrepreneurs can develop their projects and to which Itaú is a mentor.

“Itaú’s success is based on three main strengths: digital banking, customer centricity and employees’ professional growth,” says Horacio Vilaró, chief executive of Banco Itaú Uruguay. “These key strengths positioned Itaú as a pioneer and a disruptive leader. We will continue to focus on our [digital] strategy, while maintaining emphasis on sustainable performance and efficiency ratio.”

US, Bank of America

Reaching customers through brick-and-mortar branches is as important as serving them through digital channels for Bank of America. The lender has a physical footprint that is within reach of 80% of the US population and it wants to broaden its coverage further still. In addition to digital access, customers want face-to-face interaction too, the bank says. Indeed, Bank of America reports that every day a total of 800,000 people visit its financial centres across the country seeking advice. Some of these centres are specifically dedicated to the local community’s needs and, in addition to retail banking, they provide access to financial education, job opportunities and, in some cases, a space to host local art and cultural events. 

The bank’s digital offering has grown too. In particular, in 2018 it made available a virtual assistant, Erica, to all US customers. The tool helps provide a clearer picture of customers’ financial situations and has helped boost engagement for the bank. Its services include notifications on recurring charges or when membership fees increase unexpectedly, for example, and can notify when typical patterns of spending have the potential to push the balance in the red over the following seven days.

Looking at the latest available full-year results, Bank of America’s financial situation appears in good shape, ready to take on the next phases of its expansion strategy. Its net profits grew by an impressive 54.4% in 2018, delivering a return on equity of 14.46%. Its efficiency ratio was also good, at 58%, while assets and Tier 1 capital remained stable.

“We serve our clients and communities by deepening relationships, helping each individual, each business and each investor through the power of every connection we can help them make,” says Bank of America’s chief executive Brian Moynihan. “That is our purpose, and it is how we want everyone – employees, the communities we serve, clients and investors – to see us.”

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