BBVA and Cisco Strengthen its Strategic Partnership to Accelerate Digital Transformation and Foster Innovation

Rhea-AI Summary

Cisco (CSCO) and Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) have signed a Strategic Whole Portfolio Agreement, giving BBVA access to Cisco's software portfolio and CX services. The five-year deal aims to enhance BBVA's digitization journey by integrating innovation into daily operations.

Insights

Market Research Analyst

The Strategic Whole Portfolio Agreement between BBVA and Cisco represents a significant commitment to technology and innovation within the financial services sector. From a market research perspective, this strategic alliance is a forward-thinking move that can potentially enhance BBVA's competitive edge in the increasingly digital financial landscape. By consolidating 3,000 individual contracts into a single agreement, BBVA is poised to streamline its IT operations, which could lead to cost savings and improved operational efficiency. Such a move is indicative of an industry trend where large institutions are seeking to simplify and centralize their technology infrastructure to better manage costs and complexity.

Furthermore, the emphasis on cybersecurity, collaboration, data center, networking and services within the agreement highlights the growing importance of these areas in the financial industry. Financial institutions are now more than ever reliant on robust cybersecurity measures to protect against the rising threat of cyber attacks and this deal signals BBVA's prioritization of security in their digital transformation journey. The market could view this proactive stance positively, as it addresses one of the key risks associated with digital banking and financial services.

Financial Analyst

Analyzing the financial implications of the Strategic Whole Portfolio Agreement for BBVA, the five-year duration provides a long-term visibility into the bank's operational expenses related to technology. This strategic investment in Cisco's software and services is likely to be a significant line item on BBVA's balance sheet, but it is also an investment in the bank's future capabilities and efficiency. By gaining access to the latest AI-driven innovations and continuous technological developments, BBVA may be able to enhance its product offerings and customer experience, which could lead to revenue growth and customer retention.

Investors should note that such strategic partnerships can also entail risks, such as dependency on a single vendor and the need for successful integration of new technologies. However, BBVA's history of digitization and the existing eight-year partnership with Cisco suggest a mitigated risk in this case. The deal could be seen as an indicator of BBVA's commitment to maintaining a leading position in digital banking, which may have positive implications for its stock performance if the anticipated efficiency and productivity gains materialize.

Cybersecurity Expert

The inclusion of cybersecurity solutions in BBVA's agreement with Cisco is critical, given the financial sector's vulnerability to cyber threats. The proactive services provided by Cisco's specialized team are essential for anticipating and mitigating potential security breaches, which can have severe financial and reputational consequences for financial institutions. By leveraging Cisco's expertise, BBVA not only aims to protect its own operations but also to ensure the safety and trust of its customers' assets and data.

For stakeholders, the focus on cybersecurity can be reassuring, as it demonstrates BBVA's understanding of the evolving threat landscape and its commitment to implementing advanced protective measures. This is particularly important as the financial industry continues to experience digital transformation, which, while offering convenience and efficiency, also expands the attack surface for potential cyber threats. The strategic partnership may serve as a benchmark for industry best practices in cybersecurity, potentially influencing other financial institutions to follow suit in prioritizing and strengthening their security postures.

News Summary:

• The global financial services group Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) signs a Strategic Whole Portfolio Agreement with Cisco.
• The agreement gives BBVA access to Cisco's full software portfolio, world-class technology and Customer Experience (CX) services, supporting the bank's digitization journey. 
• Five-year agreement enables BBVA to integrate continuous innovation into daily operations, enhancing speed, agility, and offering the latest in digital financial services.

SAN JOSE, Calif. and MADRID, March 7, 2024 /PRNewswire/ -- Cisco (NASDAQ: CSCO) and BBVA today announced the companies have deepened their strategic alliance and signed a Strategic Whole Portfolio Agreement (WPA), providing BBVA faster access to Cisco's comprehensive software and Customer Experience (CX) portfolio. BBVA is the first EMEA-based financial services institution to sign a WPA with Cisco in Europe and Latin America.

The five-year agreement includes solutions in cybersecurity, collaboration, data center, networking and services. The agreement with BBVA spans operations across multiple countries. It includes proactive services provided by a specialized Cisco team and promotes collaborative innovation. Additionally, the deal simplifies management by consolidating 3,000 individual contracts into a single unified agreement. This streamlines BBVA's global IT operations, significantly improving efficiency.

"BBVA's alliance with Cisco is more than a supplier-customer relationship. After eight years of Strategic Partnership working together, BBVA premises and employees worldwide will have access to not only current but future Cisco technological developments," says José Luis Elechiguerra, Global Head of Engineering at BBVA. "Additionally, the agreement allows BBVA to achieve significant efficiency and productivity gains," adds Jordi García, Global Head of Strategy & Performance of Engineering at BBVA.

According to Oliver Tuszik, President of Cisco's Europe, Middle East and Africa region (EMEA), "We are proud to support the continued growth of one of the world's leading financial institutions. For over a decade, BBVA has pioneered the digitization of banking in Spain and globally by putting customer experience at the center. During the next stage of our strategic partnership, together we will leverage the power of Cisco's whole portfolio, including the latest AI-driven innovations, to accelerate their transformation."  

BBVA is a customer-centric, global financial services group founded in 1857. Winner of Global Finance's 2023 Best Digital Bank Awards for Spanish businesses, its services include retail banking, private banking, asset management, wholesale banking and other related financial solutions.

Strategic Digital Partnership
Since 2016, BBVA and Cisco's dedicated team have collaborated to create the bank of the future, leveraging technologies like collaboration, networking, data center and security. This strategic digital partnership, along with alliances with other leading tech companies, has accelerated BBVA's transformation. As an early adopter of digitalization, BBVA is now at the forefront of financial services innovation.

Additional Resources

• Find more information on Cisco's software portfolio here.

About BBVA

BBVA is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico and it has leading franchises in South America. It is also the leading shareholder in Turkey's Garanti BBVA and has an important investment, transactional and capital markets banking business in the U.S. Its purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests on solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.

About Cisco   

Cisco (NASDAQ: CSCO) is the worldwide technology leader that securely connects everything to make anything possible. Our purpose is to power an inclusive future for all by helping our customers reimagine their applications, power hybrid work, secure their enterprise, transform their infrastructure, and meet their sustainability goals. Discover more on The Newsroom and follow us on X at @Cisco. 

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company.   

 

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SOURCE Cisco Systems, Inc.

FAQ

What kind of agreement did Cisco and BBVA sign?

Cisco and BBVA signed a Strategic Whole Portfolio Agreement (WPA), providing BBVA access to Cisco's software portfolio and Customer Experience (CX) services.

What does the agreement aim to achieve for BBVA?

The agreement aims to enhance BBVA's digitization journey by integrating continuous innovation into daily operations, improving speed, agility, and offering the latest digital financial services.

Who is the President of Cisco's Europe, Middle East and Africa region (EMEA)?

Oliver Tuszik is the President of Cisco's EMEA region.

When was BBVA founded?

BBVA was founded in 1857.

What kind of services does BBVA offer?

BBVA offers retail banking, private banking, asset management, wholesale banking, and other related financial solutions.