The Spanish finance industry is facing one of its biggest challenges due to the deep transformation of its traditional business model, which jeopardizes the industry’s profitability levels and sustainability in the long run.

As a result of lower interest rates, lack of liquidity and asset renovation, financial entities are facing a challenging landscape where the aim for higher returns at lower costs is critical.

On the other hand, new European and Spanish regulations have improved the efforts for banks and financial institutions to reinforce their solvency and liquidity. Leverage control, an increased control on the so called “shadow banking”, and investor protection are only some of the many factors affecting operators.

On the other hand, one particular factor has played a major role in the transformation of this industry, which is the reduction of the installed capacity, mainly affected by the closure of bank branches and offices. This factor has somehow relieved the burden for financial institutions, but it is their clients who will have to adapt to an increasingly digital environment with less physical interaction.

Therefore, the finance industry digitalization process and the increase of non-traditional service offering channels have defined a turning point in the business model of financial institutions that understand the need of moving from the typical multichannel service offering to a more efficient omnichannel digital approach that actually meets the client’s needs.

Our deep understanding of the current and future challenges that this industry’s companies have to face allows us to provide personalized, practical and committed legal services.