This branch network state banks won’t stop shrinking. HE concentration process assets and progressive cuts caused by digitization And decline in profitability Number of financial offices caused by prolonged negative interest rates lowest level since September 1975, even before the advent of democracy. In addition, a process in which the number of operators is now significantly reduced four major Spanish banks account for 65% of all branches available in the area.
This is evident from the latest data from the Bank of Spain on the evolution of the network of credit institutions in Alicante, which clearly reflects the radical change in the sector structure. Thus, at the close of last September, that is only 600 branches remained in operation throughout the province after 92 more delegations disappeared in the previous 12 months. However, in all fairness, it should be noted that the majority of these closings corresponded to adjustments resulting mostly from the CaixaBank and Bankia merger, which took place in the last quarter of last year. By contrast, the pace of new closures is slowing as 2022 progresses.
The number of branches that remain open in any case They make up only a third of the existing In mid-2007, when the expansion of savings banks was at its peak and there were as many as 1,770 branches. From then on, and with the onset of the crisis, the figure began to fall steadily, at a greater or lesser rate, depending on the moment and above all the different mergers that were carried out.
But the network isn’t the only thing that has declined during this time. The restructuring process of the financial sector also brought with it a significant interruption. Number of establishments operating in Alicante and concentrated supply in fewer hands. from 53 organizationsIn 2007, those who had branches in the province passed. only 24and many a almost witnessing presence. In fact, only nine operators have more than 10 offices.
Despite making some adjustments (3), Sabadell once again became the institution with the most branches in the province with the total number of branches. 139. A leadership position that CAM has traditionally held since joining the banking business and momentarily lost with the integration of Bankia and CaixaBank. After the closures that followed this merger—many to group several branches into one larger branch—the new CaixaBank is in second place. 111 delegations Compared to 185 recorded by the Bank of Spain a year ago. HE BBVA maintains 76 (six less than a year) and Santander58 (one less than September 2021).
In this way, they are among the four major Spanish banks in which they concentrate. 65% of the network, 20 more points more than four organizations with the most assets in the year 2007, all are indicative of the degree of concentration achieved. If the 71 branches of the Cajamar group (including Caixaltea, Caixa Petrer and Caixa Callosa) are added, the top five banks account for 75% of branches, compared to 50% for the same number of establishments in 2007.
race from afar
For the deputy director of the Valencian Institute for Economic Research (Ivie) and one of the leading experts in the industry, Joaquin Maudosthis network adjustment was necessary” because there is an open overcapacityso it had to be fixed industry liveMoreover, Maudos recalls that although the degree of concentration achieved in Spain “clearly exceeds the European average”, this “does not necessarily mean less competition”. you can compete remotely without the need for an office”.
In any case, the expert considers that the National Markets and Competition Commission (CNMC) should ensure that there is sufficient diversity. Moreover, Maudos is confident that the measures designed by the bank to prevent possible crises are reliable. financial exclusion fixes problems in accessing financial services in the smallest municipalities that Ivie identified in one of its reports.
Now the real question is whether the tuning will continue. Some bank executives, such as César González-Bueno, Sabadell’s CEO, 2023 will not be the year of major cuts, however, this does not mean that lowering the blinds will not continue. Therefore, Joaquín Maudos still sees a certain margin.
On the contrary, labor unions in the sector, “the bone has already been touched” and if the shutdowns continue, as the head of state of the UGT Finance Sector reminds, attention problems for certain groups, such as the elderly, that are already causing protests, will worsen, Victorian Miravete.
service centers
In any case, the change in the concept of financial office seems to follow. Most entities prefer larger delegations In addition, they specialize in value-added tasks such as advising on savings products or credit management, while the rest of the operations are obtained through digital channels or ATMs. This situation office shop CaixaBank’s. In the case of Santander, they went a step further with their model. business cafes. For its part, Sabadell has chosen to limit the “mega-offices” model it announced in 2019 to just one address per region, though he advocates reforming some delegations to adapt to changing times, as he will soon do with one. one of its branches from Elche and another from Xàbia.