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BBVA Spark Ignites Entrepreneur Innovation

Joe Naffah Mahuad - BBVA Spark
Country Manager Mexico & LatAm Head

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Sofía Hanna By Sofía Hanna | Journalist and Industry Analyst - Wed, 05/10/2023 - 08:32

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Q: Why was BBVA Spark launched and what is its objective?

A: BBVA Spark is a program that BBVA launched in July 2022 to boost the innovation ecosystem in the countries where we operate. It is a segment that specializes fully in technology and innovation companies. Our goal is to help these companies grow and walk an easier, value-added path toward growth through the financial services we provide.

We have a specialized team that focuses solely on kindling innovation within companies. This team has experience within nontraditional industries, such as fintech, healthtech , ecommerce, proptech and metaverse, among others. Therefore, we already know the industries our customers are operating in, so from the first interaction with them, we can have smart conversations and quickly come up with a tailor offering that satisfies their needs. We always try to show our customers how to get the most out of our offering.

Among the solutions that we offer is venture debt of up to US$20 million for growing companies. We also work as a one-stop shop so our clients can solve all their banking needs with the ample product portfolio that BBVA offers across all segments. The bank also helps to integrate technology and other innovation companies to the bank and to other traditional companies. We try to foster better interactions and help them reach the right people within different organizations to spur growth because we believe their solutions can change the world.

Q: What solutions does BBVA Spark offer in support of new companies?

A: When a new company comes to us, we help it with the most robust products in Latin America. BBVA shows them how to ensure a good start in terms of opening operations in Mexico, Colombia and Spain, providing legal, tax and other guidance when needed. First we focus on their initial needs, depending on what stage they are in. Then, we gradually increase our involvement within the company to deliver the necessary products at the right time; some examples are payments, collections, online banking and payment platforms.

Q: What are the success rates in each of BBVA Spark's stages?

A: We discovered that regardless of the stage in which technology and innovation companies are, we can help them due to our broad services portfolio. BBVA has the flexibility to change its offer and adapt to fit different needs. The success rate has been great, which has led to a higher demand for the services than we imagined. Moreover, we believe that our product offering is received brilliantly within the market. It is a unique solution in Mexico, which is reflected in the demand for it.

Q: What efforts has the group made to generate new business opportunities with much greater diversity?

A: The tech innovation ecosystem has done a great job in promoting diversity but we still have a long way to go. Regarding gender, between 5% and 10% of companies have female founders or high-ranking members on their teams. This is a low number that we need to increase. We need to create opportunities for women to become more involved in the ecosystem.

We see this as an area of opportunity since tech-related careers employ around 77% of men and only 23% of women. Another area to focus on is to guarantee that diversity is contemplated during the founding of a company.

Regarding other geographies and ethnic groups, the ecosystem has done a good job, however it also needs to be further promoted. We need to encourage opportunities to build a more diverse team regarding gender, ethnicity and other aspects. Diversity is a win-win for everyone. BBVA has been working on this issue for a long time with great success, partnering with key accelerators.

Q: What are the main entrepreneurial trends in Mexico that could boost market potential?

A: Financial technology, e-commerce and logistics companies have been the most buoyant industries in Latin America. Innovation typically emerges in the spaces where the need is the highest, so this is an indicator that these industries will continue to move forward.

The pandemic has made healthcare technology a new area of opportunity. Moreover, the marketing of artificial intelligence and data is also boosting industries significantly. Other opportunities are in sustainability, climate technology, agricultural technology and wellness, both in individual wellness and in employee wellness.

Q: What is the outlook for the innovation sector in Mexico and Latin America for the remainder of 2023?

A: I see a highly optimistic outlook for the rest of the year when it comes to innovation. We have had a tough couple of years because of the global economic slowdown. However, in these types of cycles, there are also many opportunities. Many of the great companies have taken advantage of difficult moments; many companies slow down while others disappear, leaving ample room for growth to the remaining ones.

Q: What does BBVA want to focus on in 2023 and what message would you like to convey to the industry?

A: For BBVA, 2023 is a crucial year. We are trying to further boost the innovation segment by integrating Latin America into our scope. Our goal will be to help companies grow regionally and for us to become a one-stop shop in Mexico, Colombia and Argentina.

My recommendation for traditional companies is to remain close to their sector. They have great ideas to make real changes and ignite the feeling of innovation within the company. And to Tech and Innovation companies, I recommend starting to work with traditional players because they can add value, volume and structure. It is an exceptionally good time to try new solutions.

 

BBVA Spark is a subsidiary of BBVA and focused on supporting entrepreneurs to scale their businesses and finance their operations. It has operations in Mexico, Spain and Colombia.

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