BBVA drives innovation in companies through transactional banking

BBVA brings together renowned experts from Cargill TCM, Holcim Mexico, Bizum and Grupo Iconn (7-Eleven) to focus on transactional banking and delve into pioneering and personalized solutions that change the operations and management of companies.

In an era defined by globalization and digital interconnectedness, transaction banking plays a leading role in the operation of companies. Facilitating a steady and secure flow of capital is key to driving sustainable and responsible economic growth. According to Eva Rubio, Head of Global Transaction Banking BBVA, "Nowadays it is essential to innovate to optimize cash flows, crossborder, supply chains and collections. In addition to managing the business risks of digitalization, sustainability, and globalization. At BBVA, we are very focused on providing innovative solutions and leading this transformation process."

In this context, BBVA has brought together executives from Cargill TCM, Bizum and Grupo Iconn (7-Eleven) at its Transaction Banking Conference,  the online event focused on the transformation of transactional banking to which more than 300 people from 12 different countries connected.

Efficient supply chain management

From a corporate investment banking perspective, efficient supply chain management has become a critical factor for business success and long-term value creation.

Sašika Dobovšek, Manager RIG Europe at Cargill TCM, a leading multinational agribusiness company, said, "We work closely with suppliers/customers and offer innovative financing solutions that enable the purchase and sale of products and services while reducing the risks associated with international transactions and maximizing opportunities". Dobovšek has focused on the relevance of supplier relationships and the Prepayment and International Trade Loans solutions to support their counterparties. She pointed out that they have "a presence in 70 countries that allows us to understand the market from a local perspective so that we can offer financing solutions according to the needs and realities of each one." She also focused on the relevance of sustainability and their goal of making the global food system more sustainable, secure, and accessible. "We are aware that no single company can address these challenges alone. By connecting and collaborating with farmers, industry, local and global communities, academics, NGOs and governments we drive large-scale impact to help create a more sustainable agricultural sector. We work every day to feed a growing population. There will also be changes in consumer demand. We believe that through the adoption of regenerative agriculture practices and innovative solutions we can produce the food the world needs and do so sustainably," she explained.

Efficient supply chain management has become a critical factor for business success and long-term value creation

For her part, Alejandra Alcalde, Head of Supply Chain Finance Global Sales at BBVA, pointed out that banks have always been involved in providing multiple solutions to drive supply chain efficiency, and emphasized that today it is important to consider five products that help companies transition to a digital and connected world: supply chain finance, a catalyst product for suppliers in the supply chain that has become much more flexible and offers many options; the trend toward the use of prepayments; purchase order finance, and beyond pure supplier relationships; inventory finance; and factoring, which is also reaching high levels of structuring.

During the conference, Manuel Piñera, Procurement & Sourcing Manager at Holcim Mexico, explained the company's strategy for resuming operations after the pandemic and other disruptions it has faced in recent years, such as natural disasters. "The main strategy we have is based on supplier diversification. We do not rely on a single source of supply, but work with several suppliers in each location and, in this way, we diversify and at the same time develop suppliers that have a positive impact on the local economy." The company relies on new technologies, such as artificial intelligence, to monitor its supply chain in real time or predict bottlenecks. He further explained that "At Holcim, sustainability is an integral part of our business model, and we have integrated it into all our operations and supply chain."

Grupo Iconn and BBVA promote the cash flow of the future in Mexico

BBVA and Grupo Iconn (7-Eleven) have a close and longstanding relationship in Mexico, based on technological innovation to adapt to the new context of digitalization, streamlining and simplifying processes, with a constant focus on security.

Commenting on the cash flow challenges faced by a company as diverse as Grupo Iconn, Laura Hernández, Treasury Manager (Director) at Grupo Iconn Mexico, noted that in the new digital paradigm of automation and increased efficiency, "The challenge is to ensure that every peso that is sold is withdrawn and returned in full to the safe deposit box. This means absolute control and an extreme physical and virtual security environment. Before, everything was manual and physical, but there has been a significant transformation in cash flow and now we have extremely automated equipment that allows us to have a constant view of cash and how to manage points of sale to deal with cashback," adding that "Banks are our key partners and allies. We would not be able to digitize the cash flow if it were not by going hand in hand. This alliance allows us to ensure a safe and compliant environment for our mutual customers." "7-Eleven was the first convenience chain in Mexico to offer active contactless functionality, which has been very well received by our customers, most of whom are millennials and Generation Z."

For his part, Marco Almada, Head of Cash Management at BBVA Mexico, commented that this type of alliance means expanding financial services and offering extended hours services to customers in a win-win relationship. This partnership has been built over the years and has allowed 7-Eleven's cash management to evolve while offering value-added services in its stores through automated processes.

Bizum and BBVA: Building new payment models in eCommerce

In a firm commitment to innovation, BBVA collaborates with Bizum to continue evolving its solutions for companies. This project aims to expand the use cases of Bizum as a means of payment for businesses, while maintaining the agility, security and convenience that Bizum already offers in eCommerce, such as eliminating the need to enter the phone number in each transaction.

During the Transaction Banking Conference, Manel Becerra, eCommerce Manager at BBVA Spain, said that "the most remarkable part of this project has been the ability to collaborate between the main actors in the process. First, Bizum, which involved the entire ecosystem and supported all the needs that the project required; and second, Redsys, which participated with great insistence in the implementation of those services that were essential and required an extra effort. At BBVA, we have played the role of acquirer, coordinating the project and adapting to the changes in order to guarantee exceptional quality with a high level of excellence and demanding standards".

Ángel Nigorra, CEO of Bizum, cited collaboration, the banking ecosystem and the commitment to a European standard for instant transfers as the pillars of the project. According to Nigorra, "We started eight years ago with payment between individuals, and it was a way to position and promote the brand, but we always had new and different use cases in mind. Now the commercial focus of Bizum entities is to offer it for eCommerce and there are already 70,000 merchants that accept Bizum as a payment method."