BBVA Compass Makes Larger Push Into Digital Lending Space

BBVA Compass, the U.S. subsidiary of Spanish banking giant BBVA continues to see an increase in it digital customer base.

According to the Birmingham, Alabama-based bank’s first quarter results, its number of active mobile banking users spiking by 30% over the past 12 months compared to the first quarter of 2017.

On top of greater adoption of app-based based banking, the firm, which reported net income of $209 million USD in the first quarter, is anticipating further growth in the market for direct-to-consumer loans.

To take advantage of opportunities in this space, the bank recently launched its the digital version of its BBVA Compass Express Personal Loan service, which “offers near instantaneous decisioning and potential same day funding for both customers and non-customers,” according to the company.

Though this service has existed previously, it is only now being opened through digital consumers in the general public. Unsecured loans of between $2,000 USD to $35,000 USD are available through the Express Personal Loan’s digital channels.

Those applying within a branch can receive up to $100,000 USD, and BBVA Compass customers can receive a 1% interest rate reduction if loan payments are automatically debited from their linked checking account.

This lending space has already been disrupted significantly by fintech startups, including SoFi, Elevate, and WeFinance, and BBVA Compass only sees the trend growing in the years to come.

“There is a clear demand on the part of consumers for personal loans,” said Shayan Khwaja, executive director of consumer lending at BBVA Compass. “This demand represents an opportunity for banks — which hold customer relationships, have the needed funding, and boast a physical network — to demonstrate their own digital prowess and ability to serve the customer. Frankly, it’s an opportunity tailor made for a digitally-driven institution, like BBVA Compass.”

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