BBVA AvalBox aims to extend digital transformation to company guarantees

Maria Nikolova

BBVA AvalBox is a new digital tool that allows companies to request, present and consult guarantees online.

BBVA has become the first Spanish bank to digitize company guarantees thanks to its new digital tool ‘BBVA AvalBox’, which allows businesses to request, present and consult guarantees online.

A bank guarantee is a form of collateral whereby a bank (guarantor), undertakes to meet the fulfillment of a customer’s obligation (guaranteed party), before a third party (beneficiary), in the failure of the customer to do so. Typically, guarantees are contractual obligations entered into with the beneficiary and involve covering the payment of a set amount of money, be it of a trade or loan nature.

Until now, this entailed a long process requiring agreeing a model checked by the legal services of the bank, the drawing up of the documentation on the part of administrative departments, a handwritten signature, physical collection of the documentation by the guaranteed party and its delivery to the beneficiary.

‘BBVA AvalBox’ aims to simplify this whole process.

“BBVA wants to extend the advantages of Digital Transformation to the business world and BBVA AvalBox forms part of this process. It allows clients to perform a task that up until now was time-consuming quickly, easily and simply, thereby making more efficient use of resources”, explains Óscar Vélez de Mendizábal, the head of Transformation for corporate clients at BBVA Spain.

Thanks to the new solution, the digital guarantee can be requested, presented and consulted quickly with the maximum security. The Spanish Royal Mint (La Fábrica Nacional de Moneda y Timbre) acts as a trusted third party and informs the concerned parties of the issue of the guarantee, is responsible for the custody of the document and offers a verification service. The tool also allows the operation to carried out as it currently is on paper. To present a guarantee in this way, all that is required is to request it from BBVA AvalBox and pick it up at a branch office.

The guarantee can also be presented in telematic format at the electronic headquarters of the General Deposit Fund (Public Treasury), with which BBVA has reached an agreement. Likewise, the process can carried out from a website or mobile both by the company as well as the beneficiary whether public or private sector.

BBVA estimates that over 10,000 corporate clients can benefit from this new tool.

In order to manage guarantees online, clients need only be registered with BBVA Net cash and the guarantees module to avail themselves of a line of guarantee and have an endorsement line with an available limit.

The launch happens as BBVA has registered a sharp increase in sales through digital channels. The bank sold over 10 million units through digital channels in the first six months of 2018, marking a nearly twofold rise from the equivalent period in 2017. Sales via digital channels accounted for 38.6% of total sales in the six months through June, compared to a share of 22.4% a year earlier and 14.6% two years ago.

BBVA notes that the growth was not restricted to a certain region and that rather it has taken place in all of the geographical areas in which the Group is active. In Spain, for instance, 42.4% of the units sold in the January-June period were through digital channels compared to 24.9% a year earlier. In Mexico the figure was 32.7%, up from 15.5% a year earlier. In Turkey, the numbers are 40.6% versus 32.1%, whereas in the United States the numbers are 21.7%, up from 17.9%.

Read this next

Inside View

Industry Leaders Share Insights on Framing Crypto Payments into FX Brokerage Business

While the allure of crypto payments is strong, caution is essential. The potential benefits in terms of speed, lower fees, and blockchain efficiency need to be weighed against the risks associated with cryptocurrency volatility. 

Institutional FX

FXSpotStream volumes hit 14-month high in November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2023, which moved higher on a monthly basis.

Digital Assets

Circle denies ties with Palestinian groups, TRON founder

Stablecoin issuer Circle has denied allegations that it facilitates funding for terrorist organizations.

Retail FX

CySEC hits operator of Titanedge, TradeEU with €90,000 fine

The Cyprus Securities and Exchange Commission (CySEC) announced that it has imposed a fine of €90,000 on Titanedge Securities Ltd due to shortcomings in their regulatory obligations.

Institutional FX

Cboe FX volumes retreats slightly in November 2023

Cboe’s institutional spot FX platform today announced its trading volume for the month ending November 2023, which took a step back after a strong rebound in October.

Institutional FX

Alpha Group seals Cobase majority acquisition

Foreign exchange service provider Alpha Group International plc (AIM: ALPH) has finalized its acquisition of Financial Transaction Services, operating as Cobase.

Digital Assets

TMNG Tokens Successfully Listed on MEXC Crypto Exchange

TMN Global proudly announces the successful listing of its native TMNG token on the MEXC crypto exchange, effective December 1st, 2023. This strategic partnership marks a significant milestone for TMN Global in the crypto space.

Institutional FX

Marex completes acquisition of TD Cowen’s PB business

London-headquartered commodities broker Marex has completed the acquisition of TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

Digital Assets

Talos introduces decentralized liquidity and onchain settlement with Uniswap and Fireblocks

“At the cornerstone of the DeFi ecosystem, Uniswap has the breadth of assets and depth of liquidity that institutional traders need. And to have this partnership powered by Fireblocks, a digital assets infrastructure provider trusted by some of the most renowned institutions, is very fitting.”