Bank of the Year Awards 2022 — Americas

The Americas’ top lenders from 2022
Argentina
Santander Argentina

In the past year, Santander Argentina has maintained its position as the top privately-owned bank in the country by loan and deposit volumes. It is also ahead of its peers in payment methods, foreign trade, transactional services and cash management. Unsurprisingly, it has scooped the Bank of the Year award in 2022.

Santander Argentina is always striving to improve. The bank is focused on transforming its IT infrastructure to improve interoperability in its business ecosystem and with third parties, which will help to bring to market new products and services quickly. These initiatives are part of a four-year plan with an $80m budget.

In addition, the lender is developing a more digital business model thanks to product portfolio simplification and back-office process automation. Digitising the customer journey is another part of the process.

Santander Argentina boasts new digital products that helped it to achieve 90% digital customers and 82% digital sales. During the past year, the acceleration of digitalisation driven by the Covid-19 pandemic allowed it to launch 100% digital onboarding for most of its retail products, including accounts and packages, credit cards, insurance, personal loans and insurance.

The lender also aims to become the leading bank in sustainable finance in Argentina and has been focusing on green loans and environmental, social and governance (ESG) bonds. Achievements in the past year comprise the placement of six ESG bonds, including the first sustainability bonds in the domestic capital market. In addition, the bank has an alliance with energy company Enel X to provide and finance the purchase of solar panels for small and medium-sized enterprises.

Bahamas
CIBC FirstCaribbean International Bank (Bahamas)

CIBC FirstCaribbean International Bank is continuously striving to offer its customers the best services and experience in the Bahamas. For example, it has launched a credit card product, CIBC FirstCaribbean Mastercard Black Credit Card, catering to high-net-worth individuals. The card comes with luxury benefits including travel rewards. The Purchase Protection with Delivery Coverage feature allows most purchases made with the credit card to be protected in case of loss due to theft or accidental damage for the first 90 days from date of purchase.

The bank is committed to providing customers with faster and more efficient ways to access banking services. In 2021, it started installing smart automated banking machines, which offer services such as on-screen verification of cash and cheques, as well as the option to deposit cash or cheques and make bill payments without the use of envelopes. The machines can also detect counterfeit banknotes.

Clients can also now rely on the CIBC FirstCaribbean 1st Insights Personal Financing Model, an app which provides personalised financial insights to clients thanks to artificial intelligence, for example by tracking expenses, subscriptions and spending patterns. The app also alerts clients when they have funds in their chequing account that can be transferred to savings.

“Covid-19 has had a significant impact on our business strategy with managing our credit portfolio, but it accelerated the bank’s digitisation transformation agenda due to the country’s imposed shutdowns and branch closures. The bank will continue its digitisation road map and streamlining activities. There will be a greater focus on growth, maintaining overall credit quality, managing costs, enhancing our client relationships and investing in our employees,” says CIBC FirstCaribbean International Bank (Bahamas) managing director Jacqueline Bend.

Barbados
Scotiabank Barbados

During the past year, Scotiabank Barbados has increased its focus on digital transformation to enable better customer experiences and more efficient operations.

Now customers with an existing deposit account or credit card can open a new account using the Scotia Caribbean App, eliminating the need to visit the branch, thereby improving the customer experience. Digital account opening has resulted in a marked increase in digital sales for deposit accounts and credit cards.

The bank launched the redesigned app in 2020, with additional features added over the past year, such as enhanced security and accessibility features, including biometric sign-in. Other features include the ability to share account details using email, SMS or WhatsApp, and enhanced customer access to loan statements and credit card receipts. Certain customer segments can also rely on the option to call or email their dedicated bank representative directly from the app.

In June 2022, approximately 53% of Scotiabank Barbados’s customers, a 9% increase on the previous year, were enrolled on its digital platforms. Meanwhile, branch transactions have been decreasing as customers turn to digital solutions. In November 2021, it launched Scotia SelectPay, a new digital banking feature which allows customers to divide their credit card purchases of approximately Ba$500 ($253) or more into instalments.

“We have made significant investments in enhancements to our processes, upskilling of our employees and bringing new technologies to Barbados, helping us provide customers with faster, safer and more convenient banking options. We have some exciting digital initiatives in the pipeline that will continue to improve the customer experience through tailored products, services and advice,” says Suzette Armoogam-Shah, managing director of Scotiabank Barbados.

Bermuda
The Bank of NT Butterfield & Son

The Bank of NT Butterfield & Son opened in 1858 as Bermuda’s first bank. It now provides a range of banking, trust and investment services to clients. Nevertheless, the bank shows how heritage does not hamper innovation. Last year, it launched ‘Programme Stratus’, a multi-million-dollar investment over three years to enhance the company’s technology infrastructure.

As part of the programme, the lender upgraded the application that runs its ATM networks in Bermuda and the Cayman Islands. It also enhanced the way in which customer debit cards are requested: debit cards can now be ordered at the time of customer onboarding and cards can be collected at the branch within three to four working days.

In addition, Butterfield completed the migration of all employees in Bermuda, Cayman and Halifax to a single virtual desktop infrastructure group-wide, increasing the collaborative efficiency of the organisation.

The bank is developing an environmental, social and governance framework, which incorporates three key pillars: climate risk and resilience, education and community well-being, and workforce equity. Within this framework, it has launched a number of green lending products to make it easier for clients to purchase electric or hybrid vehicles, install solar panels and plan other energy-saving improvements.

Butterfield also provides an enhanced loan agreement offering 100% financing and competitive rates with seven- to 10-year repayment terms for green home loans, and up to seven years for electric and hybrid vehicle loans.

This year the bank announced senior leadership changes: Michael Schrum has been named president and group chief risk officer and Craig Bridgewater named group chief financial officer. According to the bank, these appointments will support Butterfield’s strategy of long-term growth.

Finally, this year Butterfield relaunched its graduate talent programme in Bermuda, the Cayman Islands and the UK Channel Islands. In addition to university graduates, the programme is also open to talented candidates with work experience rather than a degree.

Bolivia
Banco Mercantil Santa Cruz

Banco Mercantil Santa Cruz (BMSC) is the Bolivian lender with the largest market share in loan portfolio and deposits. In 2021, the bank recorded an impressive 72.2% jump in net profits, as the country’s economy staged a significant recovery following the relaxation of Covid-19 lockdown measures.

In addition to strong growth, the lender has shown continuous support to smaller businesses, as well as large companies, by offering solutions and products tailored to their needs.

More recently, it has been focusing on strengthening its technological leadership in the domestic market through innovation. This was enabled by an internal culture of innovation and multidisciplinary teams.

The bank recently implemented Pagos QR BMSC, an agile payment system that works via a QR code. The platform has grown significantly since its launch, affiliating more than 2000 businesses. The platform has no additional cost for consumers and offers a number of benefits including online monitoring of transactions and electronic billing online.

BMSC also offers Super Makro Cuenta, a savings account offering a competitive interest rate and daily, monthly and weekly draws to earn different amounts of cash and a prize of $b1m ($148,111) at the end of the year. It offers Banx, a line of products aimed at young people, including accounts, credit cards and loans at favourable conditions.

The bank is dedicated to contributing to financial inclusion in Bolivia. It has supported growth in social housing loans and productive sector loans. For small producers who do not necessarily have access to traditional financing, the bank created an area dedicated to structured loans.

BMSC continues to contribute to society with four social responsibility programmes. The funds necessary for these programmes are collected from pennies donated through client transactions. This has benefited more than 41,000 people in fields such as education, health and sports.

Brazil
BTG Pactual

The key focus for BTG Pactual in the past 18 months has been augmenting its wholesale banking offering with services aimed at traditional retail and high-income retail clients.

As a result of these changes, it has achieved 458bn reais ($85.7bn) of wealth under management in the first quarter of 2021, a fourfold increase on 2018 levels. Over the same period, adjusted net income grew by 137%, from 2.7bn reais in 2018 to 6.5bn reais in 2021.

Such growth was supported by an impressive revenue expansion in business segments including investment banking and asset management. Corporate and small business lending saw triple-digit growth.

Technological innovation is a strong focus for the bank, which launched several products that set it apart in the current market. For example, Invest+ is a credit card cashback programme, which entitles customers to 1% cashback for every Brazilian real spent. The cashback balance can be deposited in one of three different investment funds or redeemed as points in one of the major local mileage programmes.

The bank has also developed Finanças+, a personal financial management tool that uses artificial intelligence (AI) to analyse and track customers’ expenses. The tool delivers suggestions to help customers organise their day-to-day spending.

BTG Pactual offers a number of products and services for enterprises, including BTG Empresas, a fully digital bank launched in 2021. It also provides supply chain credit financing and transactional banking products to small and medium-sized enterprises (SMEs). The bank’s SME credit portfolio, started in late 2019, reached 19bn reais by March 2021.

The bank uses AI to automate credit analysis, thereby allowing it to offer solutions tailored to the risk profile of each
client.

“Our belief is that we will continue to benefit from financial and capital markets deepening, as well as disintermediation in Brazil, while improving efficiency over time,” says Roberto Sallouti, CEO of BTG Pactual. “We expect to grow our top line faster than revenues, thanks to the investments in building our digital retail platform. We remain focused on ensuring excellence and the expansion of our digital product offering, enriching both our institutional and retail clients’ experience.”

Canada
Scotiabank

As customer expectations continue to rise, particularly for digital products and services, banks must constantly refresh what they offer, and Scotiabank certainly has not rested on its laurels with digital innovation.

Earlier this year, it launched Scotia Smart Investor, a comprehensive digital investment advice platform. A key differentiating feature being that it supports a genuinely omnichannel experience, with customers able to use Smart Investor independently and as part of support interactions, including in branch or via contact centre.

Another initiative to improve customer experiences is its partnership with cinema chain, Cineplex Entertainment, to launch Scene+ in December 2021, aiming to be one of Canada’s largest loyalty programmes. Scotiabank customers can earn points by spending on one of eight eligible debit or credit products, as well as via the Scene+ card, with points redeemable on entertainment, travel and shopping across a range of partners.

It has always been a bank that seeks to make an impact far beyond its immediate products and services, and that has continued over the past 18 months. This includes via the Scotiabank Women Initiative, which in May 2022 increased its commitment to deploy capital to women-owned and women-led businesses in Canada to C$10bn ($7.4bn) by 2025. This builds on its initial $3bn deployment, which was fulfilled last year. In January 2021, it also launched ScotiaRISE: a 10-year, $500m global initiative to promote economic resilience among disadvantaged groups.

Brian Porter, Scotiabank president and CEO, says: “At Scotiabank, we have built a world-class culture and a winning team that is high-performing, supportive and inclusive. Our team is committed to supporting our customers and clients by giving them the best advice as we roll out new services and tools to help them through this challenging economic period.”

Cayman Islands
Cayman National Bank

Cayman National Bank (CNB) distinguishes itself among its peers with its sustainability plans. The lender is now part of the UN Environment Programme Finance Initiative, a partnership between the UN Environment Programme and the financial sector to support sustainable development.

The bank has integrated environmental, social and governance goals into its decision-making process. Through the Principle of Responsible Banking strategic initiative, it has focused specifically on the pillars of gender equality, climate change and renewable energy.

CNB is already advanced with regards to gender equality, with women representing 42% of leadership roles. The goal is to continue to develop gender diversification across the company with a specific focus on corporate-level executives. It is also working on providing guidance to female entrepreneurs via a partnership with the Cayman Islands Centre for Business Development.

Through this partnership it provides financial assistance for female-led businesses, as well as taking part in a number of initiatives to encourage female entrepreneurs.

Moreover, CNB has enhanced communication for green lending opportunities through its new GreenLiving campaign. Opportunities include lending for energy efficiency products such as insulation, solar panels, LED fixtures, and hybrid and electric vehicles.

With regards to digital banking, in September 2021 the lender launched an online banking platform which includes the bank’s first mobile app. The platform offers a number of features such as real-time credit card payments and biometric two-factor authentication to make payment transactions more secure and efficient. Cayman National Online is free to access for customers.

In June 2022, CNB launched a security enhancement tool for cardholders, 3D Secure. The protocol is designed to be an additional security layer for online credit and debit card transactions. The bank’s goal is to reduce e-commerce fraud by 75% annually.

Chile
Banco de Crédito e Inversiones Chile

While Banco de Crédito e Inversiones (BCI) Chile has strong and growing presence in the Chilean market, the lender has recently shown its international ambitions. Back in 2015, it had acquired Miami-based banking group City National Bank. Last year, it established a subsidiary in Peru to consolidate its presence in that market and began operating early this year. International operations now account for more than 35% of total assets.

Eugenio Von Chrismar Carvajal, BCI’s CEO, has ambitious plans for the bank. “Our goal is to become a leader in the Latin American market, with a base of more than 10 million customers in the next two years, and to compete on equal footing with the leaders of the US banking sector,” he says.

Aside from international expansion, the lender has been busy working on its technology architecture, with an investment of more than $400m in recent years. Funds have been deployed to treble the computer processing capacity and increase cloud usage by 4.2 times since 2018, among other initiatives.

BCI is strengthening its digital proposition, investing $400m in recent years. Today, 70% of its sales are digital. The bank is unifying the issuer bases of the bank and recently acquired digital wallet Mach, Servicios Financieros, which jointly have about five million users, and expanding the scale and acceptance network using partnerships with third parties. It aims to become a fully Mach digital bank and in 2021 migrated three million users to a new banking core.

In 2022, BCI launched several services including Mach Junior, an account for people under 18 years old, loyalty programme BCI Plus and savings account Cuenta Futuro.

In the past year, the bank has also ramped up its commitment to sustainability. The bank issued seven green bonds in 2021 and made the first public placement by a Chilean bank in the Swiss market. In 2022, it adhered to the Principles of Responsible Banking of the UN Environment Programme.

Colombia
BBVA Colombia

BBVA Colombia leverages a strong history in its home market and has been busy bringing a number of innovative solutions to market over the past 18 months. Despite operating in an environment marked by the Covid-19 pandemic, the group increased net profits by 91% in 2021 and has continued developing new solutions to cater to corporate clients.

For example, BBVA Empresas is a mobile application for corporate clients that allows them to carry out their most frequent financial operations and transactions in a more efficient way online. The app also allows users to monitor business sales from a smartphone. It aims to improve the customer experience when making transfers, simplifying steps and registering additional codes and passwords.

BBVA also launched a point-of-sale linked loan. The tool is especially useful for small and medium-sized enterprises, which are not normally eligible for traditional financing because of their size. Customers can request a loan linked to their sales, which is a source of immediate funding for these companies.

Digitalisation of traditional banking services is a priority for the lender. BBVA Colombia is introducing a digital version of libranzas, payroll-deductible loans repaid directly by the borrower’s employer to the lender.

The bank has introduced Banca Wealth to offer high-value customers a preferential service. With this solution, the bank’s executives can advise customers in a more efficient way because the system allows a 360-degree view of the customer’s holding information, including balance, funds and securities.

“At BBVA, we continue to develop new solutions for our customers, both individuals and businesses. For our individual customers, we have optimised features, such as interactions on the voice channel, and expanded our offering of digital products and services. Our biggest responsibility is to accelerate the transition towards a decarbonised economy,” says Mario Pardo, country manager at BBVA Colombia.

Costa Rica
Banco Nacional de Costa Rica

Banco Nacional de Costa Rica’s strategic objective is to become the pre-eminent financial conglomerate in the domestic market by offering the best customer experience while attaining a high level of profitability — a commendable aspiration and it is well on its way to achieving it.

The lender has worked hard to transform and adopt a sustainable business model. In particular, it aims for a ‘triple utility’ with social welfare, environmental protection and shared wealth as objectives.

Within this context, the bank is developing products to support its customers in their sustainable development. At the same time, its products and services are targeted towards the different population groups in the country. It has strengthened its financial education strategy to combat the over-indebtedness experienced by various segments of the population.

Banco Nacional, in conjunction with the Central Bank of Costa Rica, has implemented several technological improvements last year. Citizens can use a new authentication model that allows them to access banking, government and commercial services through a digital certificate. This service provides greater security to clients at a time when Costa Rica faces significant cyber security challenges. The system also supports the country’s financial inclusion efforts.

To support its ambitions, Banco Nacional is investing in modernising its technological infrastructure. It has developed new functionalities for its clients, including a business-to-business platform that allows corporate customers to make payments in real time to suppliers and clients. It is also working on a project to disburse lines of credit through its internet banking channels.

The lender has decided to maintain several initiatives developed during the Covid-19 pandemic to support its clients and mitigate a potential increase in non-performing loans. It has reinvented the loan collection process by automating data collection and credit risk analysis by customer segmentation. It has also worked to offer products and services tailored to the specific needs of each client.

Dominican Republic
Banco Popular Dominicano

Banco Popular Dominicano has made huge efforts to enable a return to normality in the country following the Covid-19 pandemic, while still managing a 42% increase in net profits in 2021. For example, it was the first and only bank in the Dominican Republic to allow clients to formalise claims through its mobile app, without the need to visit a branch office.

The lender is committed to expanding its portfolio of sustainable financing products as a part of its adherence to the UN Principles of Responsible Banking. As such, it has developed Hazte ECO, a portfolio of sustainable financing solutions for both corporates and individuals. In addition, last year it increased the number of loans for hybrid and electric vehicles by 168% compared with 2020. The lender also offers green leasing to finance the installation of solar panels and acquisition of electric vehicles.

In March 2022, Banco Popular approved the issuance of a green bond as a public offering debt of 2.5bn pesos ($46m) to support the country’s transition to net-zero emissions. The funds will be mainly directed to financing new renewable energy, electromobility and eco-efficiency projects.

The bank is well on its digital transformation journey and modernising its products and services. It was the first to offer authentication based on biometrics, which is used in processes such as onboarding or creating a profile online. It also added a number of features to its app.

Importantly, Banco Popular is actively working to increase financial inclusion in the Dominican Republic, where just 55% of the population have access to savings accounts. According to the National Survey of Financial Inclusion of the Banco Central de la República Dominicana, only two out of 10 people use a budget or record their income and expenses to plan their family finances. To address this issue, Banco Popular has developed a free online education platform offering content on financial literacy.

Ecuador
Produbanco

Produbanco has been increasing its assets, deposits and loans in the past year despite a challenging environment. The lender, active in the country since 1978, has taken the lead in the corporate segment, but also serves all segments of the market. It is ranked second in Ecuador in loans, with a 12.4% market share. In 2021, its net profits jumped by 141%.

The bank accelerated its digital transformation during the Covid-19 pandemic with the aim of making the service 100% available to its customers, while improving the experience in various service channels. It has launched several services and products over the past 18 months, including a new digital account that allow clients to perform a number of operations online.

It also released a modern version of its app with a new design and added functionality, such as the incorporation of geo-referencing technology in the onboarding process. The update allows clients to create a Produbanco account on their smartphones in a few minutes. With the app, clients can do most transactions quickly and without the need to visit a branch.

However, given its deep history and physical presence in the country, the bank is not planning to go fully digital in all segments. Instead, it believes that an ongoing transformation from physical to “phygital” — a mix of physical and digital — will best serve its clients for the foreseeable future.

Produbanco has 37 digital offices, which have a self-service area equipped with cutting-edge technological devices, such as digital customer service kiosks which allow communication with bank officers via video conference, and multifunction ATMs.

Recently, the bank carried out a renewal of its entire ATM network nationwide. The new ATMs have innovations such as touch screens and improved transaction menu options.

El Salvador
Banco Agrícola

In September 2021, El Salvador became the first country to make bitcoin legal tender. Banco Agrícola was quick to respond and adapt to the change in regulation. It began accepting bitcoin across its network for payments toward loans, credit cards, and merchant goods and services.

Since then, more than 10,000 bitcoin payments have been made, worth an estimated $420,000 in accumulated billing by the end of June 2022.

Within its payments portfolio, Banco Agrícola has incorporated Garmin and Fitbit to allow clients to make payments using credit and debit cards through their smartwatch in a quick and efficient way.

More generally, the bank has focused on the digital transformation of its banking services. It strengthened its e-banking and mobile banking channels, while expanding its range of digital products and solutions. Following these developments, it accumulated 388,000 active digital clients as of the end of 2021.

In 2020, Banco Agrícola launched the Wompi payment gateway to allow businesses to access an alternative means of payment and increase digital sales. Since its inception, Wompi has billed more than $32m from more than 400,000 transactions. Wompi is also a point-of-sale system, with users able to receive contactless payments through their smartphones.

Banco Agrícola adheres to the Women’s Empowerment Principles, a joint initiative between the UN Global Compact and UN Women, which offers a comprehensive framework for women’s empowerment in the workplace and the community.

Last year, it also launched a new line of credit, Crédito Mujer Futuro, to support female-led business. As of June 2022, 178 credits had been granted worth a total amount of more than $2.7m.

Guatemala
Banco Industrial

Banco Industrial, the largest bank in Guatemala by assets, has maintained stable growth in recent years. Total assets’ compound annual growth rate has reached 9% over the past five years. The lender has been focused on increasing its presence in retail banking and offering new customer services.

Despite having one of the largest distribution networks in the country, it plans to expand its presence in rural areas via third-party retail points of sale. Such efforts will also help increase banking penetration, which is relatively low in the Central American country.

During the past 18 months, Banco Industrial has launched several new products and services. For example, in 2021 it rolled out Rapiremesas, a new credit tool for remittances beneficiaries. The lender is the second largest recipient of family remittances in Guatemala, with a 31.6% market share in 2021.

In addition, customers can now transfer cash to any person in their contact list by entering their phone number on the mobile banking app; the recipient can then collect the money from the nearest ATM using an authorisation code.

The bank has also expanded its mobile banking app functionalities. This year, customers can perform several additional actions through the app, including credit card request and activation, temporary lock and setting spending limits.

“Digitalisation in Banco Industrial has taken an important role in the bank’s retail market penetration strategy, as more banking products and services can reach customers where banking infrastructure is scarce,” says Luis Lara Grojec, Banco Industrial’s CEO. “We will continue to focus on the small and medium-sized enterprise segment, as we recognise they are the growth engine of the Guatemalan economy. Part of our future plans are also to improve our environmental, social and governance strategy.”

Honduras
Banco del País

Banco del País (Banpaís) has a strong presence in Honduras; it is the fourth largest lender by total assets. It increased its assets by 17.8% in 2021 and its profits jumped by 98.8%. As of April 2022, it had the largest housing portfolio, with a market share of 17.9%.

Digitalisation has been a priority for Banpaís throughout 2021 and the lender has been working on improving customer experience and online banking services. In the past year, it has worked on several digital marketing campaigns to promote the use of electronic channels.

The mobile application was enriched with new features including the use of bio-metric recognition and push notifications. Its online banking platform was overhauled with a new interface, better user experience and adaptability to different device screens.

Among the products launched in the past 18 months was the Game Card credit card, with discounts and unique benefits for online purchases; the new Mastercard brand credit cards, with 10% discount at gas stations nationwide; and Visa Distribución Island Shipping Banpaís Credit Card, tailored for businesses.

In 2021, the bank’s app usage increased by 84%. In addition, there was a 12% increase in online banking use among business customers.

Aside from digital improvements, the bank has focused on its corporate social responsibility strategy. Banpaís has a longstanding commitment to supporting the local population. It has formed alliances with a number of organisations including Asociación Hondureñas al Rescate de los Valores y la Moral and the organisation for the protection of birds, Pro-Alas.

The bank contributes to the country’s financial literacy efforts via the financial education programme, Dinero Inteligente. The bank is also a member of Corporación Bi, which leads and supports the development of Central America.

Jamaica
Scotiabank

In January 2022, Scotiabank Jamaica launched the Scotiabank Women Initiative to support women-led and female-owned businesses in Jamaica. The programme helped provide these businesses with greater access to capital via a fund that was valued at J$3bn ($20m) at launch and allows women-owned businesses to access up to J$100m.

The programme also offers career development resources, including free education workshops aimed at increasing financial management and technical expertise. The final component of the programme is advisory assistance to mentor women.

Digital transformation, with a focus on online banking and mobile app platforms, is a key priority for the bank. Over the past 18 months, the improvements made to its online channels have resulted in a 25% increase in the number of digitally active customers and a more than 70% increase in online transactions.

Such an increase in digital adoption is also the result of better online banking services. Existing customers can now open a chequing or a savings account online, with more than 50% of accounts currently opened digitally. New customers can start opening an account online and then visit the branch to complete the onboarding, if need be. Security has also improved thanks to a new fraud detection tool that allows the bank to track customers’ usual spending patterns.

With the launch of an account information sharing feature, customers can now easily share their bank account details via email, WhatsApp and other popular platforms directly from the app to make peer-to-peer payments easy and error-free.

“In the coming year, we will continue to execute on our strategy of putting our customers first and making it easy for our customers to do business with us and further leverage digital to deliver more personalised financial solutions to our customers,” says Audrey Tugwell Henry, president and CEO of Scotia Group Jamaica.

Mexico
Banco Mercantil del Norte

Banco Mercantil del Norte (Banorte) has outshone its peers in Mexico, a highly competitive market, to pick up the accolade as Bank of the Year for 2022. It is clearly a bank going from strength to strength, with a comprehensive digital offering and customer-centric strategy.

“We want to achieve hyper-personalisation,” says Banorte’s CEO José Marcos Ramírez. “In past years, we have been investing around 13% of our total income in our technological transformation to continuously improve our self-service channels and enhance our banking operations, as well as to leverage on data and consumption habits’ information of our customers, aiming for the personalisation of services to create segments of a single client.”

During 2021, Banorte accelerated the digital transformation of its traditional banking services and launched a more intuitive version of its mobile app, Banorte Móvil. The new version enables a fully digital onboarding process for several products including credit and debit cards, payroll and personal loans. In due course, auto loans and mortgages will be added. Banorte Móvil now serves 4.5 million customers, a 40% year-on-year growth.

Banorte is actively seeking commercial and strategic alliances that allow it to enhance and complement its product offering and increase its competitiveness in the market. The lender has already invested in a number of digital disruptors: Clip, a Mexican mobile point-of-sale provider that enables smaller businesses to access banking products and innovative payment methods; Rappi, an on-demand delivery app through which the bank is developing the next generation of financial services; and, most recently, property technology start-up Tuhabi. Banorte is also building its own digital bank.

Panama
Banco Mercantil SA

Banco Mercantil SA (BMSA) is a leader in innovation, offering differentiated products and increased efficiency for its customers. To support its efforts, it has adapted an agile working methodology. For example, Mercantil Innovation Lab, the bank’s unit tasked with leading the innovation process, is composed of working groups focused on online banking, mobile banking, virtual assistance, onboarding processes and payment methods. The idea is to foster teamwork and create an experimental environment in which new ideas are freely expressed.

The bank has evolved to incorporate robotic process automation to execute repetitive, high-volume internal tasks in a more efficient way. The result has been increased productivity and reduced operational risk. These processes have supported the management of operations in units such as compliance, credit cards, credit risk, and fraud monitoring, among others.

To foster financial inclusion, BMSA recently launched Mony, a digital chequing account aimed at the unbanked population. Mony can be easily requested from any mobile device thanks to facial recognition technology. The account does not require a minimum balance and enables a number of people to access an easy-to-use product at a very low cost. The product offers a number of advanced features including the ability to make transfers via email or split payments among users.

Last year, BMSA began developing a corporate sustainability strategy based on environmental, social and governance (ESG) criteria, which it believes is critical to ensure future growth.

“We are very proud to be recognised by The Banker as the best bank in Panama,” says Gustavo Vollmer, chairman of the board at Mercantil Servicios Financieros Internacional. “Our franchise is continually evolving and focused on digital transformation. We are also keen on [expanding] our ESG practices, which are a fundamental pillar of our growth business model.

Paraguay
Sudameris

Sudameris has shown great resilience throughout the Covid-19 pandemic in 2021. It created a liquidity reserve in 2020 to face any potential liquidity crisis and in a second phase continued to support companies which had strong long-term plans.

The bank organised proactive internal human resources management to make sure that it continued to support its clients. This was also possible thanks to a massive IT effort, allowing clients to use the bank’s digital channels.

Last year, Sudameris launched the second version of its new online banking platform, which allows it to perform several services, including payments, more quickly and efficiently. Corporate clients are now benefiting from a modern online platform, which was rolled out following a two-year development stage.

The bank is improving the employee experience as well. For example, Sudameris is working on a new client relationship management platform to support its staff. All these developments have been supported by a substantial increase in the lender’s IT budget.

Sudameris aims to diversify its financing activities, with a strong focus on sustainability. For example, it is involved in the Paracel project, a $4bn private initiative to build a paper pulp plant, which also entails the reforestation of 250,000 hectares of trees.

Sudameris is a shareholder in the project and has developed credit products for smaller landowners, cattle ranchers and farmers who dedicate part of their land to reforestation.

Peru
BBVA Perú

BBVA has scooped the Bank of the Year award for Peru with strong fundamentals, digital innovations and a razor sharp focus on sustainability. In 2021, it expanded its Tier 1 capital base by 3.2% and its net profits jumped by 138%.

Sustainability is a strategic priority for BBVA worldwide. In July 2021, the group announced a doubling of its sustainable financing commitments. It aims to channel €200bn in sustainable financing projects by 2025, twice the amount of its initial commitment in 2018.

In 2021, BBVA Perú was the first bank in the country’s private financial sector to launch a green mortgage product. In addition, it was involved in a number of innovative sustainable transactions.

For example, it arranged for Peruvian fishing company Tasa a $15m sustainable factoring line, a line of credit with preferential interest rates for fishery suppliers who meet responsible and sustainable management standards. It also agreed a $80m sustainable loan with Peruvian natural gas company Cálidda, with an interest rate adjustment mechanism partially based on the performance of the company’s sustainability rating.

In January 2022, BBVA became the first Peruvian bank to be included in the Dow Jones Sustainability MILA Pacific Alliance Index. The index is a float-adjusted market capitalisation-weighted index that measures the performance of Chilean, Colombian, Mexican and Peruvian companies according to environmental, social and governance criteria.

“We are on the way to turning into a more retail-oriented bank, with significant investments in building new skills in processes, data, technology and commercial areas. The bank has experienced sustained growth in the consumer loans and credit card segments, as well as in our corporate segment. We are turning our network of branches into specialised customer advice centres, promoting digitisation and sustainability,” says Fernando Eguiluz, country manager at BBVA Perú.

Puerto Rico
FirstBank Puerto Rico

FirstBank Puerto Rico is consolidating its leading position in the domestic market. In 2021, the bank completed the acquisition of Banco Santander Puerto Rico. In the same year, FirstBank continued to grow while operating in an increasingly competitive environment.

It is now positioned as the most profitable banking franchise in Puerto Rico, with the lowest cost-to-income ratio and non-performing asset ratio. Importantly, these milestones have been achieved while sustaining a high common equity Tier 1 ratio and a strong liquidity profile.

“We are very pleased to have been selected as Puerto Rico’s Bank of the Year for 2022 by The Banker. This prestigious award highlights the strength of our franchise and the deep commitment of all our colleagues to deliver an outstanding client experience while safely navigating an uncertain operating environment,” says FirstBank’s president and CEO Aurelio Alemán. “Following the successful integration of more than 150,000 customers from the recently acquired operation, we are now focused on growing market share across all core business segments and continuing to expand our digital self-service offerings.”

This year, it upgraded its digital banking offering. Modernised features include a new mobile business digital banking application, which allows commercial clients to process payrolls, deposit cheques and transfer money, among other transactions.

During the second quarter of 2022, FirstBank began a partnership with an unnamed fintech firm to provide a fully digital commercial lending platform for small business loans. This allows the bank to improve its market penetration in the small business segment.

The bank also released its first environmental, social and governance report this year, which focuses on topics such as governance and leadership, responsible business practices, diversity, equity and inclusion, and community engagement.

Trinidad and Tobago
Scotiabank Trinidad and Tobago

Scotiabank Trinidad and Tobago (SBTT) has started to reap the results of its digital transformation journey, which is delivering improved banking experience for its customers. As of February 2022, approximately 47% of customers — a 14% increase on the previous year — were enrolled on the bank’s digital platforms. Digital transactions increased by 42% over the same period.

Net profits increased by 19% in 2021, driven by digitisation and a reduced cost to serve and prudent risk management which realised a reduction in net impairment losses when compared to 2020, according to the bank.

SBTT has introduced new features to make personal banking in the country easier. It has been working on a new digital onboarding process which enables customers to open an account in about 15 minutes. Customers with an existing deposit account or credit card can now open a new account using the bank’s app. This has resulted in a 156% increase in digital sales for deposit accounts and 43% increase for credit cards.

Last year, the Scotia Caribbean app was enriched with additional features and now it is possible to share account details in a simple way using email, SMS or WhatsApp to make transfers. In addition, loan statements and credit card receipts are easily downloaded through the platform.

The bank offers its customers enhanced security and accessibility features, including biometric sign-in. It also uses one-time passwords as a second layer of security to protect online accounts.

“As we look to the future, putting customers first will remain at the forefront of everything we do, helping them be better off today and tomorrow. With competitive products, accessible, personalised services and high-quality advice, we are building stronger customer relationships, ultimately benefiting our employees and shareholders,” says Gayle Pazos, senior vice-president and managing director at Scotiabank Trinidad and Tobago.

Turks and Caicos Islands
Scotiabank (Turks & Caicos)

In the past few years, Scotiabank (Turks & Caicos) has been working on digital transformation to meet its customers’ demand and needs.

The lender has continued to invest in its digital platforms and technology. The improvements to its online banking and mobile app over the past 18 months have resulted in a 6% rise in the number of customers actively using the channels and a 41% increase in online transactions.

It is now easier for clients to set up transfer and payment recipients or update personal information online. Scotiabank (Turks & Caicos) has increased its security features and made improvements in fraud detection by tracking customers’ usual spend patterns to identify and block fraudulent transactions. It has also made it easier for customers to share basic bank account details via email, WhatsApp or other channels for payments.

Since 2021, the lender has been working on the introduction of intelligent deposit machines across its banking network. These smart machines offer a variety of features including immediate credit on cash deposits, cash denomination options and credit card payments. This has reduced the need for the clients to visit branches and has been particularly relevant in the pandemic period.

In October 2021, Scotiabank (Turks & Caicos) launched a new feature on credit cards called Scotia SelectPay. The feature allows customers to use their existing revolving credit limit to turn eligible purchases into a short-term instalment plan.

“In the coming year, we will continue to expand on the improvements of both our physical and digital footprint to enhance the services that we offer to customers. Additionally, we will leverage technology to review customer trends and offer more personalised financial solutions to our customers, as we aim to maintain our position as the financial partner of choice in the Turks and Caicos Islands,” says Suzan Snaggs-Wilson, managing director of Scotiabank (Turks & Caicos).

Uruguay
Banco Itaú Uruguay

Banco Itaú Uruguay has proven its resilience in a challenging environment. The lender has grown in all areas of the business during the Covid-19 pandemic: for example, customer numbers increased by 12.8% and deposits grew 14% in 2021.

The bank also kept its ambitions high with regards to expansion plans, acquiring minority stakes in Uruguayan fintech companies Prex and Paigo, in line with its strategic vision of regional expansion into digital banking. It also bought a 56% stake in Resonance Uruguay, which offers solutions for payments and online transactions.

In addition to investing in burgeoning fintechs, Itaú has focused on innovation in its own products and services. The lender is working on positioning itself as a strong digital bank with a relevant multichannel strategy.

“We want to keep focusing on continuous improvement, aiming at our clients’ satisfaction. Technology is a source of opportunity. We want to thrive in our relationship with fintechs. We want our bank to be close to our clients, and to offer agile, innovative, efficient, and diverse solutions at the service of people,” says André Gailey, CEO of Banco Itaú Uruguay.

For example, Itaú launched Cuenta Pocket, a free and digital savings account, and increased the functionalities in its app Pagos and SuperApp Itaú. It is also now offering an online platform that allows clients to access mutual fund investment portfolios starting at $1000.

As a result of these initiatives, 2021 was a record year for the digitalisation of its services: approximately 75% of credit cards, 84.2% of loans and 64.8% of accounts were acquired through digital channels.

Itaú is strong in corporate banking, with a healthy relationship with the agribusiness sector. Last year, in 2021 Itaú developed a new agro segment in retail banking, with the aim of offering and developing tailored solutions for each producer, regardless of size, which allows them to overcome market fluctuations.

US
Citizens Financial Group

Following its initial public offering (IPO) in 2014 and since RBS (now NatWest) sold its final stake in 2015, Citizens has been building up its business. That growth strategy stepped up a gear in 2021 with an ambitious acquisition strategy.

Notably, this included the acquisition of 80 HSBC branches on the US east coast. And hot on the heels was the purchase of New Jersey-based Investors Bank with 154 branches. These acquisitions immediately gave Citizens a top-10 deposit position in the critical New York City metropolitan market — a new market for the bank. On top if this, it added new branches in the Philadelphia metropolitan area, Washington DC, south-east Florida and across New Jersey. Together, this filled a coverage gap between the bank’s existing retail footprints and added roughly one million retail and business customers.

Crucially, it has continued to prioritise excellent customer service during its growth. This includes a renewed focus on overhauling its technology, which it had historically under-invested in prior to the IPO. During the past 18 months, it has focused on its next-generation technology initiative, which has prioritised creating seamless customer experiences, delivering personalised products and services, cost efficient and modern product delivery, and improving resiliency and reliability.

Reflecting on this period, Citizens’ chairman and CEO Bruce Van Saun comments: “Shifting industry economics, disruption of our traditional markets and evolving customer preferences have created the most dynamic and competitive environment I have seen over my long career as a banker.

“While our strategy has been sound all along, we have moved to add scale through acquisition, invested more in digital experiences, and leveraged agile ways of working to foster innovation and increase our clock speed,” he says. “We will continue to find ways to be a trusted advisor to our customers, across consumer, small business and corporate, along their unique financial journeys.”

Venezuela
Mercantil Banco Universal

Mercantil Banco Universal’s (MBU’s) strategic objective is remaining one of the top banks in Venezuela. As of June 2022, it had a 19.9% market share within the Venezuelan private financial system.

The bank actively supports Venezuelan families and communities across the diaspora. With an estimated $2.26bn annual flow in remittances, MBU aims to offer faster, more efficient and cheaper remittance transactions, reducing the transactional costs for all the parties involved. In 2022, it embarked on a new digital remittance solution, where the funds sent from abroad can be credited into the national or foreign currency account of the client.

In other developments, MBU relaunched Mercantil Móvil Personas app in December 2020; the next year MBU successfully migrated its customers and added new functionalities, such as buying and selling currencies.

An updated version of Mercantil Movíl Empresas, which allows a company to carry out transactions through mobile devices, was also released. Through this app, clients can make queries and daily operations related to their businesses easily and quickly from wherever they are. The app allows customers to check balances and movements of company accounts, and make transfers between the group’s accounts, as well as to other national banks.

In addition, MBU relaunched mobile payment application Tpago. The service allows retail customers to instantly send and receive mobile payments between individuals affiliated with the service. By the end of the 2021, a total of 1.98 million customers were affiliated with Tpago, through which more than 269 million transactions were recorded.

“This award is a source of pride for Mercantil’s team, as The Banker has recognised our institution for three consecutive years as the best bank in Venezuela.” says Gustavo Vollmer, chairman of the board at Mercantil Servicios Financieros Internacional. “Our group has a heritage of almost a century, connecting people and servicing clients in multiple countries, and we are focused on generating experiences that create value.”