Bank of the Year Awards 2022 — Western Europe

Western Europe’s top lenders from 2022
Andorra
Crèdit Andorrà Financial Group

Crèdit Andorrà Financial Group has shown its continued ambitions with a pair of strategic acquisitions over the past year, as well as posting strong financial results in 2021, making it a clear winner for Andorran Bank of the Year.

In 2022, Crèdit Andorrà finalised its acquisition of Vall Banc, which will reinforce its growth strategy and help it become more competitive in the private banking space, as well as strengthen its long-standing commitment to the country’s economic and social progress. The acquisition represents a significant boost for the bank, which is targeting recurring profits of €40m and was financed entirely by its own funds.

Creand Wealth Management, the group’s private banking subsidiary in Spain, also acquired GBS Finanzas Investcapital, a securities firm specialising in high-net-worth advisory and family offices, with Creand Wealth Management now having a business volume of €3.2bn — up from €2.48bn at end of 2021. As a result of these two acquisitions, as well as organic growth, the bank has increased its overall business volume to around €24bn — far above its strategic plan for the period. Crèdit Andorrà is also setting up a new family office division.

The bank recovered well from the Covid-19 pandemic, with profits up 9.8% in 2021 and assets growing by 5.1%. Its cost-to-income ratio ticked up slightly, to 68.12%, with non-performing loans down from 7.45% in 2019 to 6.22%. “Our strategy is underpinned by results,” says Xavier Cornella, CEO of Crèdit Andorrà Financial Group. “We consolidated our commitment to service capacity, specialisation and synergies that strengthen customer relations while offering a robust, personalised and independent value proposition. Sustained organic growth, through careful and responsible management and corporate integrations, strengthened our Andorran leadership and our presence in private banking and asset management in Andorra and Spain.”

Austria
Raiffeisen Bank International

While Austria’s banking sector struggled during the Covid-19 pandemic, Austrian banks came roaring back in 2021, benefitting from improved economic conditions and the impact of digital transformation efforts.

The winner of our 2022 country award, Raiffeisen Bank International (RBI), saw its net profits grow 65.7% in 2021, after profits fell by 33.3% in 2020. Its total assets are up 15.8%, including a 7.8% rise in Tier 1 capital. RBI’s non-performing exposure, including loans and debt securities, has also ticked steadily downwards in recent years, from 2.1% in 2019 to 1.6% in 2021.

The bank has continued to work impressively on furthering its digital footprint, pushing forward with its adoption of cloud-based solutions. Starting in 2020, RBI defined its cloud strategy, with the goal of having 100% of new applications built on the cloud, or at least cloud-ready, as well as between 30% and 50% of IT staff trained on the cloud, and more than 50% of applications moved to the cloud.

Meanwhile, in April 2022, RBI launched a new trade finance front-end called eTradeOn, allowing clients to easily request and manage bank guarantees online. Through this, the bank has been able to increase the number of new transactions via its digital channels from 15% to more than 20% in the first quarter of 2022 alone, with a target of 30% by year-end 2023 — something it says it is well on the way to achieving.

In April 2022, RBI’s Serbian subsidiary also completed the acquisition of 100% of Crédit Agricole Srbija, a leader in the field of agricultural business financing, with Serbia being seen as an attractive growth market for the banking group. A merger between the two operations is ongoing, with the expectation that the joint organisation will be able to grow its client base and enlarge its offerings, with RBI ultimately targeting a top-three position in the country’s financial services sector.

Belgium
KBC Bank

KBC Bank, the winner of Belgium’s Bank of the Year for 2022, has had a resoundingly successful year, with net profits for the bank growing by 185.6% year on year, after decreasing by 30.2% in 2020. Total assets are up 7% and non-performing loans down from 2.4% in 2020 to 2.2% in 2021.

However, it is not just the headline numbers that helped the bank take this year’s coveted award, but also its development of innovative banking solutions. Among the bank’s strategic initiatives has been the launch of Kate, an artificial intelligence (AI)-based conversational assistant. The technology has already outperformed the bank’s targets in terms of the number of users, number of interactions, and in its ability to comprehend questions and effectively solve them. As of June 2022, more than 1.8 million conversations have taken place with KBC Bank’s customers via Kate, with the platform accurately understanding customer questions in 78.3% of instances, according to the bank.

At the same time, KBC Group has, through its subsidiary Discai, moved to commercialise its in-house AI applications, to improve and help other financial institutions keep up with fast-changing technological and regulatory developments.

“The Covid-19 crisis has given our digital applications, which were already hugely popular, an extra boost,” says KBC Bank’s executive director David Moucheron. “Our KBC Mobile app, voted as one of the best banking apps in the world, has seen the addition of our AI-powered digital assistant Kate, who is getting more efficient by the day.

“While we continue to invest in our digital ecosystem, the human touch remains an essential element in our customer service. We believe in a healthy balance between the practical efficiency of our digital apps and the warmth of personal service in our branches.”

Cyprus
Bank of Cyprus

It has been a positive year for Bank of Cyprus, the largest financial group in Cyprus and the Mediterranean country’s Bank of the Year for 2022. Assets grew by 16% in 2021, after a modest growth of 1.85% in 2020, and the bank returned to profitability. After losing €171m in 2020, the lender recorded net profits of €30m in 2021, and in the first quarter of 2022 saw profits of €21m, compared to net profits of just €8m in the first quarter of 2021. At the same time, it announced a record €618m in new loans and a further reduction in its non-performing loan exposure.

But, it is not just about the numbers. Bank of Cyprus has launched a new digital economy platform, Jinius, which enables the interconnection of the entire financial market in a single digital environment. Since January 2021, several new features and design updates have been implemented on the bank’s mobile app, with the bank introducing app-based car and home insurance purchases; ‘MoneyFit’, a new feature released in March 2022 that provides customers with actionable insights about their financial wellbeing; and mobile cheque deposits.

As part of the bank’s environmental, social and governance strategy, it also launched three environmentally friendly personal loans in September 2021, offering favourable loans specifically for hybrid or electric cars, environmentally friendly home renovations and energy upgrades.

“Digitalisation is a major trend that we have integrated into our business strategy, which is enabling us to increase efficiency and to improve customer service,” says Panicos Nicolaou, CEO of Bank of Cyprus. “We are focused on delivering for our customers, our investors, our employees and the Cypriot economy.

“With the restructuring completed, sustainable profitability is key to our future plans,” he adds. “We are targeting a return on tangible equity of over 10% in 2023 and meaningful dividends from 2023 onwards, subject to regulatory approvals and market conditions.”

Finland
OP Financial Group

After seeing moderate growth in its Tier 1 capital position and overall assets over the course of the Covid-19 pandemic, OP Financial Group saw significant growth in 2021, with Tier 1 capital rising 5.6% and assets up 8.7%. At the same time, the bank’s net profit levels grew by 41% in 2021, after falling by 4.3% in 2020 and 10.3% in 2019.

Since January 2021, OP has pushed through with a major overhaul of its payments business, including substantial investments in payment platforms, technology, reorganisations and renewal of core processes related to payments. One key result of this is that the bank is now able to provide real-time payments to its customers through SEPA Instant Payments, which has resulted in OP’s real-time payment volume being one of the highest in Europe in 2021.

The lender has also made significant investments in P27 Nordic Payments, a strategic joint initiative by the region’s banks that is set to launch in the coming years and aims to integrate payment regions in multiple currencies in the Nordics.

In 2021, ‘responsible business’ was added as one of the group’s strategic priorities, with the bank aiming to be a forerunner in corporate responsibility within its sector in Finland. The bank also launched Finland’s first-ever green covered bond collateralised by real estate last year.

“To maintain our strong financial performance and leading market position, we want to create even more value for our customers by excellent customer service and high-class processes,” says Timo Ritakallio, OP’s CEO.

The bank also continues to play an important role in raising financial literacy levels across Finland, through school visits, open days and online sessions. More than 20,000 ninth grade students participated in OP’s annual economic know-how competition last year, with the bank launching a guidebook for its senior customers to support their non-digital customer journey.

France
Société Générale

In 2021 Société Générale (SocGen) posted its best operating results in the group’s history, with net income of €5.6bn and profitability of 10%. The bank saw revenue rise by 16% compared to 2020, building on robust growth in all of its business lines, and while Tier 1 capital growth fell slightly to 3.08%, overall asset growth increased to 3.27%, up from 1.98% in 2020.

At the same time, its retail banking side is undergoing profound changes, with the announced merger of its French brick-and-mortar banking networks, SocGen and Crédit du Nord, in order to create a new retail bank rooted in local communities, and combining human and digital expertise. This is part of SocGen’s Vision 2025.

Officially launched in October 2021, the initial phases of Vision 2025 have seen a focus on merging IT networks and staff training. The move is expected to lead to substantial cost synergies, with a goal of reducing the bank’s cost base by around €450m by 2025, compared to 2019 figures, and a reduction in headcount of 3700 jobs, down to 25,000, based on natural departures. Since 2017, SocGen has also adopted a cloud-first strategy, and by the start of 2021 the strategy had resulted in 80% of the group’s IT infrastructure being transferred to the cloud, making the bank a leader in the industry.

SocGen is also supporting the energy transition, having contributed more than €150bn in financing since 2019, and making a new commitment of €300bn in sustainable finance between 2022 and 2025.

“In an increasingly complex geopolitical and economic environment, we have successfully simplified and strengthened the resilience of our business model, transformed our businesses to support the changing needs of our customers and the far-reaching transformations around digital technologies and ESG, and invested in a targeted manner in businesses with strong growth potential,” says Frédéric Oudéa, CEO of SocGen.

Germany
Commerzbank

Germany’s economy suffered deeply as a result of the Covid-19 pandemic and the country is looking at a worrying 2023, given the war in Ukraine. This has put pressure on German banks, including our 2022 winner, Commerzbank, which has stepped up to offer support to the wider economy.

The bank reported a net profit and retained a strong common equity Tier 1 ratio of 13.6% for the 2021 financial year, while reducing its number of branches from around 800 to 450 as of June 2022. This was part of the planned optimisation of the branch network and a streamlining of its international network, aided by the expansion of digital services. Last year also saw the launch of Commerzbank’s ‘Strategy 2024’ restructuring plan, which is focused on customer centricity, digitalisation, sustainability and profitability.

In May 2021, Commerzbank joined with Isbank and LBBW to become one of the first banks to execute commercial transactions with German and Turkish corporate clients via the blockchain-based Marco Polo trade finance network in a live environment. That same month, alongside Evonik and BASF, it successfully tested a shared blockchain platform designed to allow ordering and payment processes to be completely automated.

“[This year] has seen many challenges, but it’s clear that our Strategy 2024 is working and is also effective in a phase of low economic growth,” says Commerzbank’s CEO Manfred Knof.

In the first half of 2022, Commerzbank lead-managed more than 20 green and social bond issuances, with an aggregate volume of more than €20bn, and in 2022 issued its third green bond, with an issuance volume of €500m — the proceeds of which will be used to refinance renewable energy projects. The bank has also committed to reducing the carbon dioxide balance sheet of its entire credit and investment portfolio to net zero by 2050.

Greece
Eurobank

Eurobank had the best-in-class asset quality in the Greek market in 2021, coupled with the lowest non-performing loan ratio. The bank saw assets grow 15% to €77.9bn year on year, with Tier 1 capital up 3% to €5.8bn and profits of €328.5m. From 2022 onwards, the bank is aiming for a 10% return on tangible equity on a recurring basis, and high single-digit annual earnings per share growth.

As part of its ongoing transformation programme, in 2021 Eurobank introduced a new model to the Greek market, the ‘phygital’ service model, through which a customer’s physical interactions with a bank representative is replaced by a digital, multi-channel interaction, centred around one pivotal point, called the “digital safe box”.

At the same time, the bank is pushing to strengthen its international presence through a merger of Eurobank Beograd with Direktna Bank in Serbia and the acquisition of a 12.6% stake in Hellenic Bank in Cyprus. This is in line with its strategy to further diversify and strengthen its business in both countries.

Eurobank has a unique business model among Greek banks, with a diversified revenue stream that has more than 60% of pre-provision income originating from banking activity in Greece, about 35% from activities from regional lenders and up to 10% from its investment real estate portfolio.

“As Greece and our other core markets in south-east Europe enjoy a strong post-pandemic recovery, we focused all our efforts in supporting growth,” says Fokion Karavias, Eurobank’s CEO.

In June 2022, Eurobank also concluded the spin-off of its merchant acquiring business to Worldline Greece, along with establishing a long-term commercial partnership to distribute Worldline products in Greece. The move frees up financial resources for Eurobank to focus on core banking innovation, as it looks to a bright future.

Iceland
Arion Bank

Arion Bank has once again emerged as the winner of the Iceland country award in a highly competitive country category. This was in large part due to its impressive growth over the past two years, as well as the bank’s strong commitment to environmental, social and governance principles.

“Sustainability and green finance continue to impact our strategy and how we conduct our business and product development,” says Benedikt Gíslason, CEO of Arion Bank. “Additionally, the Arctic region, of which Iceland is a part, is increasing in importance globally. The region has a huge amount to offer economically, and we are keen to be active participants in the future development of this region.”

In 2021, Iceland’s tourism-dependent economy rebounded significantly from the Covid-19 pandemic, growing by 4.4%, compared to a drop of 6.8% in 2020. Arion Bank, meanwhile, saw its return on equity jump from 6.5% in 2020 to 14.7% in 2021, with its cost-to-income ratio continuing to tick down, from 48% in 2020 to 44.4%. Throughout 2021, the bank’s Tier 1 capital ticked up slightly, growing 0.5% after expanding by 10.4% in 2020, while assets grew 14.4% and net profits rose 129.5%.

An integral part of the bank’s recent strategy has been to improve offerings to high-net-worth individuals, in part by building on its strengths in asset management and traditional financial services. To meet this need, the bank launched a new service named Arion Premía in May 2021 and within the first year had onboarded 3000 customers — with 5% of them being new to the bank and bringing with them assets worth Ikr3.3bn ($22.9m).

The bank has also made a successful entry into the euro covered bond market, finalising a €300m five-year covered bond at the end of September 2021, the first international covered bond from an Icelandic bank. Over the past 18 months, eight Icelandic companies were listed on global stock exchanges, with Arion Bank assisting six of them.

Italy
Intesa Sanpaolo

Intesa Sanpaolo has once again shown its ambitions. The bank, which has nine million Italian small and medium-sized enterprise and retail clients, and a network of 1800 dedicated branches, has pushed forward with its growth plans at the same time it has helped pump billions into the economy.

As part of Italy’s National Recovery and Resilience Plan, the lender is providing more than €400bn in new lending to support the domestic economy, including an estimated €150bn for households, community and inclusion, €75bn for green and circular economy and green transition, and €60bn for infrastructure, transportation and urban regeneration.

Meanwhile, in its 2022-2025 Business Plan, Intesa Sanpaolo renewed its commitment to being a leading bank for social impact, setting a goal of providing €500m to support people in need, including a project to build up to 8000 social housing units dedicated to young and senior citizens, one of the largest social housing programmes in Italy.

“So far, we have allocated €30bn to help households and companies face high energy costs. We are stepping up our many social and climate initiatives,” says Intesa Sanpaolo’s CEO Carlo Messina.

The acquisition and integration of fellow Italian lender UBI Banca, which was completed in April 2021, saw Intesa Sanpaolo absorb the fifth-largest bank in Italy in terms of its branch network. At the same time, Intesa Sanpaolo is currently investing heavily in a new digital bank, Isybank, which is expected to initially serve four million customers in Italy who have simpler financial needs and prefer not to use the bank’s physical branches.

From 2024, the Isybank model will be expanded internationally, to Intesa Sanpaolo’s main European subsidiary banks and to new customers through partnerships such as a joint venture with Enel, the power utility firm. The digital bank is ultimately expected to generate annual cost savings of €600m by 2025.

Liechtenstein
LGT Bank

The world’s largest private banking and asset management group owned by a single family, LGT Bank, made strong progress in 2021. The bank’s Tier 1 capital increased by 18% in 2021, after growing 9% in 2020, with assets up 6% year-on-year (compared to 1% growth in 2020) and net profits rising 21%.

At the same time, between 2020 and 2022, LGT repositioned three of its businesses — LGT Private Banking, LGT Capital Partners and Lightrock, a global impact investing platform — as independent companies, to better enable them to enhance their offerings and provide strong, client-centric services.

“One trend we have recognised is strong demand for alternative and impact investments. LGT has extensive expertise in this area that is unique in the market,” says LGT Bank’s CEO Roland Matt. “Together with our sister company Lightrock, we provide access to private equity investments to support sustainable development.”

In July 2021, LGT Private Banking successfully completed the acquisition of UBS Europe SE’s wealth management business in Austria. The bank also opened a wealth management office in Tokyo in early 2021, and in May 2022 acquired Crestone Wealth Management, Australia’s leading high-net-worth wealth management firm, giving LGT an important foothold in the Australian wealth management market. LGT has also acquired a minority stake in German digital wealth manager Liqid.

LGT’s longstanding commitment to sustainability has continued. Lightrock’s portfolio, which has roughly $3bn of invested capital, includes more than 80 high-growth companies that contribute to the UN’s Sustainable Development Goals. LGT currently tracks the environmental, social and governance performance of around 9800 companies and 200 countries, translating this data into a sustainability rating that LGT clients can use to align their portfolios with their personal values.

Luxembourg
Banque et Caisse d’Épargne de l’État (Spuerkeess)

Some banks are increasingly standing out for their focus on responsible finance, including our Bank of the Year for Luxembourg, Banque et Caisse d’Épargne de l’État (Spuerkeess).

In recent years, Spuerkeess has pushed the boundaries of responsible finance. The bank has firmly positioned environmental, social and governance principles at the heart of its key objectives for its current strategic plan, and has joined the Net-Zero Banking Alliance of the UN’s Environment Finance Initiative. In 2021, it launched ‘Activmandate Green’ to help customers switch to more sustainability-linked instruments, and has also collaborated with business partners to advise clients on how to build or renovate their homes more sustainably.

At the same time, the bank has continued its digital journey. Spuerkeess continues to make significant updates to its mobile banking application, S-Net, and in 2021 undertook initiatives to better leverage the potential of data. That same year it also launched myTax, allowing clients to digitise their tax declarations without any prior tax knowledge, with the service able to handle even the most complex of tax situations.

“The world turns fast. At Spuerkeess we aim to continuously adapt to our clients’ needs and expectations,” says Françoise Thoma, CEO of Spuerkeess. “We want to offer a pleasant digital experience, but we know the key to that is our mobile functionality. In the past year, we have made good progress. Our app S-Net offers multiple tools that help our customers perform their daily banking tasks so they can stay on top of their finances,” he adds.

In 2021, Spuerkeess saw its Tier 1 capital grow by 15.5%, after an increase of 9.1% in 2020, with a growth in total assets of 6.4%, compared with 4.9% in 2020. The bank’s net profits also grew by 90.4% year-on-year, after two years of negative growth, while its return on equity ticked up to 7.5%, from 4.2% in 2020.

Malta
BNF Bank

It has been a challenging year for Malta, which was placed on the Financial Action Task Force’s grey list in June 2021 over concerns related to money laundering. This was the first time that an EU member state had been placed on the list. However, the country acted quickly and was removed from the list in August 2022.

The episode proved to have a significant impact on the country’s banking sector, with many banks losing their US dollar correspondent capability. BNF Bank, our country winner for 2022, was able to successfully retain and continue to operate both its US dollar and pound sterling correspondent banking relationships, which helped it to record another stellar year.

The bank’s financial results for 2021 continued the same growth trajectory that it has experienced in recent years, despite the challenges brought about by the Covid-19 pandemic and Russia’s invasion of Ukraine. In 2021, the bank’s Tier 1 capital grew by 4.8% and total assets by 11.5%. At the same time, its cost-to-income ratio dropped to 62.9%, with return on equity improving to 9.4%. By end-2021, BNF had surpassed its Ä1bn asset target, effectively doubling the size of its balance sheet in just five years.

The bank has also pushed forward with upgrading its internet banking, with the introduction of a mobile app, and is now in the process of updating its core banking system and e-channels, with a view to providing new and improved customer experiences. BNF is also on course to become the first systemic bank in Malta to operate its core banking system-as-a-service using cloud technology.

“The key driver in our industry for
the foreseeable future is technology,” says BNF Bank’s CEO Michael Collis. “Digitisation of services is at the core of our strategy, although in a tight-knit community
like Malta, our branch network will always be crucial.”

Netherlands
ING Bank

While close to a hundred credit institutions operate in the Netherlands, major players like ING continue to dominate in what is a highly mature and innovative market.

ING, our country winner for 2022, has maintained its leading position as a pioneer in the field of sustainability-linked finance, five years after launching its first sustainability-linked loan. The bank recently closed deals in both sustainable supply chain finance and sustainability-linked receivables financing, and has strongly advocated for business-related sustainability targets to become the standard.

“The evolution of the market has been nothing short of amazing. Not only are the growth figures impressive, but also the broadening of the sustainability-linked financing concept to now include bonds, interest rate swaps and supply chain finance. It has really become a movement,” says Roland Mees, director of sustainable finance at ING.

It is not just its approach to sustainability-linked finance that makes ING stand out. In recent years, the bank has developed a strong, customer-centric global communication platform to better enable contact between customers and bankers, strengthening the human touch, despite the increasing switch to digital-first solutions. The platform was rolled out in the Netherlands in 2018, followed by Belgium, Spain and Germany, with continual improvements.

ING has also created a range of seven sustainable, globally diversified funds, complete with a fully digital advisory journey, as part of efforts to democratise access to investment advice and offer a range of options, with more than 50,000 customers onboarded.

When it comes to its own financial metrics, in 2021 ING saw its Tier 1 capital grow by 6.8%, while total assets grew by a more modest 1.5%. At the same time, the bank’s net profits rebounded strongly; after almost halving in 2020, net profits grew by 92.2% year on year in 2021, with the bank’s return on equity almost doubling, from 4.8% to 9.2%, offering a strong position to build on.

Portugal
Banco BPI

The Portuguese economy contracted sharply in 2020, falling by 8.4% as a result of the Covid-19 pandemic. However, the country bounced back strongly in 2021, recording growth of 4.9%, with the government forecasting a gross domestic product rise of 6.4% for 2022, despite the global economic challenges.

Banco BPI, our winner for Bank of the Year in Portugal, has capitalised on this economic growth, with its net assets rising by 12.7% year on year in 2021, and net profits up almost 200%. The bank, which is owned by CaixaBank, had consolidated net profit of €307m in 2021, compared with €105m in 2020, with a recurring net profit in Portugal of €200m, up from Ä84m in 2020. It is now Portugal’s fourth-largest bank, with total assets of €41.4bn, and the lowest non-performing loan ratio in Portugal.

“The recent years created a sense of urgency that accelerated the pace of digital transformation, labour policies flexibility and sustainability transition,” says BPI CEO João Pedro Oliveira e Costa.

BPI has recently launched a new mortgage simulator, which allows clients to obtain a provisional analysis quickly and easily, based on their own data, in relation to loan applications, as well as a digital brokerage service that allows investors to trade online as if they were in a trading room.

Meanwhile, as part of its 2022/24 sustainability plan, Banco BPI aims to achieve €4bn in sustainable turnover, with €2bn in sustainable financing through the promotion of environmental, social and governance (ESG) products, advice and training to support companies. One notable new product is BPI ESG Empresas, a €500m funding line with ESG criteria to support the transition for small and medium-sized enterprises.

In 2021, BPI also participated as an advisor on some of the most important sustainable finance operations in Portugal, underwriting or placing more than €300m. The bank is also targeting better gender diversity, with 43% women in management positions by 2024.

Spain
BBVA Spain

Spain’s award was once again a highly competitive country category, with the winner – BBVA Spain – edging out its rivals thanks to its impressive digital innovations and successes throughout the turbulence of the Covid-19 pandemic.

In recent years, BBVA Spain has undergone a profound transformation in its relationship with its customers, towards a more ‘do-it-yourself’ and remote model. In 2021, it became the first bank to offer Spanish customers the possibility of using fingerprint or facial recognition to sign transactions through its app. Further afield, it also launched a fully digital bank in Italy in 2021, leveraging the technology of its app in Spain.

BBVA has been on a strong green drive; when it comes to its commercial business almost 30% of investment is already being channelled towards green or sustainable projects or initiatives. Furthermore, the lender has pledged €200bn in sustainable funding through 2025, doubling its initial €100bn target announced in February 2018. To help customers understand their carbon footprint, in 2021 it launched a digital calculator – available for both individuals and enterprise customers – which automatically collects data from customers’ bills, distinguishing their energy costs and calculating their equivalent carbon dioxide emissions.

Also in 2021, it launched BBVA Pivot, a new digital brand for cross-border enterprises that require enterprise to enterprise global solutions to cover their advanced treasury and liquidity needs. And with increasing concerns over the rising cost of living, last year the bank rolled out its core set of digital tools for personal finance management across the Spanish market, as well as in Argentina, Peru, Colombia, Mexico and Turkey.

“This distinction is an acknowledgement of our efforts to achieve one of BBVA’s strategic priorities: improving our customers’ financial health through tools and technology,” says Peio Belausteguigoitia, country manager for BBVA Spain.

Turkey
Türkiye Is Bankası

It is fair to say that rapid digitalisation in the financial services sector has changed customers’ and employees’ expectations across the world. For legacy lenders this switch can prove challenging. Türkiye Is Bankası (Isbank), which will celebrate its centenary in 2024 and is our Bank of the Year for Turkey, has shown itself to be highly adaptive.

The lender prides itself on being a pioneer of the Turkish banking sector, having set up the first ATM in the country, the first internet branch and the first mobile banking app, IsCep. Mobile now constitutes 75% of the bank’s total comparable transactions, and digital across-the-board 95.6%. At the same time, the share of general-purpose consumer loans which are extended via digital channels is now at more than 90%.

Isbank has rolled out its ‘Bank of the Future’ vision, with the aim to create an inclusive and participatory approach with digitalisation at the core of its strategic initiatives. In August 2021, it launched Forest for the Future, designed as a unique tool in the Turkish banking sector that enables users to gain points according to carbon footprint’s reduction, which result in the bank planting tree saplings in their name (with a certificate sent through IsCep).

The bank has also launched a sustainable agriculture tool, ImeceMobil, which provides 24/7 support for farmers when it comes to reducing costs, providing agricultural information, and enables them to sell their products at the optimum price, among other things.

“Our business strategy is fuelled by our main vision to create sustainable value with an inclusive and participatory approach,” says Hakan Aran, CEO of Isbank. “The economic challenges from the [Covid-19] pandemic and the negative impacts of climate change were being deeply felt around the world, requiring an inclusive, just and environmentally-friendly transition. We have been committed to building an inclusive economy that cares about the well-being of all parts of society.”

UK
Lloyds Banking Group

It is fair to say that the UK has been a challenging market over the past year or so, with little sign that things will change anytime soon. Given this reality, it makes sense that our Bank of the Year winner, Lloyds Banking Group, consistently matched outstanding levels of innovation with impressive attention to detail, especially when it comes to customer service.

In 2021, the bank saw total assets grow by 2%, to £886.6bn, with profits up 324% year-on-year and a return on equity of 13.8%, compared with 2.3% in 2020.

In June 2021 Lloyds Bank, along with Halifax and Bank of Scotland, launched a subscription management tool, aimed at allowing customers to view the payment date and amount, or cancel the payment without needing to contact the subscription provider, all through their mobile banking app. This is likely to prove extremely valuable in the current period of cost-of-living pressures. In the first year, 2.2 million customers used the service.

In January 2022 the bank also completed the acquisition of Embark Group, an investment platform and retirement solutions provider. The move will help fill a missing piece in its wealth management function, with an execution-only service to better tap into the growing mass affluent market.

“We have an ambitious strategy to transform our business, achieve a significant shift towards revenue growth and diversification, and to deliver higher, more sustainable returns,” says Charlie Nunn, CEO of Lloyds Banking Group.

The group aims to play to its strengths, including being the sole integrated provider of banking, insurance and wealth in the UK. It plans to invest £4bn over the next five years, targeting additional revenues from strategic initiatives, while committing to keeping operating costs flat in 2024, compared to 2022 levels. Ultimately, the bank is targeting a return on tangible equity of 12% by 2026.