"Banking must aspire to a new model in which Traditional Banking and FinTech are integrated", highlighted Ricardo Gómez Barredo, director of Accounting and Relations with Supervisors at BBVA, in the Rafael Termes Lecture on the occasion of graduation ceremony of the School of Economics.

"The future of banking lies in adapting to the new players that have joined the value chain," said the executive who highlighted the transformation that new technologies have brought about in the expectations and behavior of customers in the financial system. "The growing skill represents a challenge, innovation has to become part of the DNA of banks."

 Faced with the transition to the fourth industrial revolution, Gómez Barredo stressed that "we are facing a problem of stability in the financial system" and announced the need for regulators and supervisors to react to the new competitive environment.

The executive also stated that supervisors and regulators cannot prohibit FinTechs from operating, but "must ensure the same rules of the game for all". This will constitute "a clear and fair framework that will contribute to financial stability, innovation, customer protection and efficiency gains in the market".

Bitcoins, a matter of trust

Gómez Barredo highlighted the lack of confidence in the financial system due to the crisis in the sector. "This status made society see us as systemic entities. We need people to regain confidence". This attitude, the executive explained, is necessary in the face of the emergence of new forms of payment such as bitcoins. "It is about us really believing that we are going to pay through a computerized registry; it is the same process that occurred with the appearance of the currency".

According to the executive, the recovery of the financial system requires the balance of the financial supervision and regulation institutions that emerged in the wake of the crisis. The relationship between these institutions and the banking sector must adapt to an environment that Gómez Barredo described as complex, due to high regulatory pressure, historically low interest rates and the slowdown in emerging markets. "Governments reacted to the crisis by strengthening the role of regulators and supervisors, but we must balance regulation for the good of the system.The transformation of the industry requires us to react quickly."