Bankia S A : launches a network of 380 branches specialised in the farm sector

• The bank has made changes to its distribution model by implementing a differentiated value proposition to offer specific services for these customers
• 'We want to provide farmers with network of branches specialised in the sector, with staff who understand their concerns, are equipped to answer their questions, provide financial advice and offer them most appropriate products for their circumstances', says David Gómez, director of Agricultural Business
• The entity has a broad portfolio of services for farm sector customers, to which new products and services will be added in the coming months

As part of its strategy to increase its share of the agricultural business community, Bankia has set up a network of 380 offices specialised in the farm sector. The initiative is part of its strategy of boosting this line of activity and providing more specific services to a customer subtype with a particular set of needs.

Bankia has created a new distribution model, offering differential value, and has adapted almost 400 branches in the six regions where farming is most important. These are Andalucía, Valencia and Castellón, Castilla y León, Murcia-Alicante, Castilla La Mancha-Extremadura and North. These branches will have their own image to distinguish them from regular branches.

While continuing to provide all the regular services to customers, these branches will also have specialised agri-food business teams. The ultimate aim is to make Bankia the sector's leading bank.

'The agricultural industry is of strategic importance for Bankia. That is why we are offering farmers a branch network with specialised managers who understand their concerns, are ready to answer questions, offer specific financial advice and offer the products most appropriate in each case', said David Gómez, director of Agricultural Business at Bankia.

For specialised branch management, Bankia also provides the sector with all its remote channels so they can do all their banking tasks without going to the branch. To assist with this, it offers a 'Connect with your expert' service and the option to make arrangements using online channels like the website and the mobile app.

The bank has numerous specialised products and services for agri-food customers. Bankia customers have access to specialised farm financing, ranging from credit accounts to confirming, including advance payment of subsidies. These include Aid and Harvest Advance Payments, Agricultural Insurance Financing, Agro Sourcing and Agro Investments lines, the Agro Credit Account and discount and confirming services.

When it comes to insurance, the bank has several agricultural, civil and personal liability insurance products for the sector.

'No Fees Program'

In addition, clients with a direct account for the PAC aid can benefit from the bank's 'No Fees Programme' just by -for instance- making two purchases per month with a credit card.

If this method of payment is not used, clients who deposit the PAC directly into their Bankia accounts still pay no fees if they have taken out insurance policies (paying premiums of at least 500 euros/year), bill €1,000 per month with their points of sale or have business financing of at least €15,000 (one option suffices).

The fee-free pack of products and services includes maintenance and administration fees of all accounts; ordinary national and EU euro transfers in euros, in offices and digital channels; the deposit of national checks and promissory notes; Bankia's ATM debit withdrawals, as well as up to 4 withdrawals per month at Banco Sabadell and Red 6000 ATMs; and the annual fee for professional credit and debit cards.

Another service that Bankia offers farm sector professionals is that aid management, assisting with processing aid and providing advance payments.

The bank has an online 'Advance Simulator' that shows customers the different options for advanced payments depending on the amount and the date requested

Bankia has launched a 'Digital Aid Search Tool' to help farmers to obtain public aid available to the agricultural sector under European, national, community or provincial programmes.

The tool is free and is part of Bankia Agro Digital, a new specific area on the bank's website for the farm sector. In addition to the aid search platform, users will find information about the agri-food sector and guides on digitalisation, youth entrepreneurship and taxation.

Bankia's agricultural business

Bankia's agricultural business shows a credit balance of Bankia's agribusiness approaching 960 million euros in 2019, an increase of 11.5% compared to the previous year. Advances from the CAP, another indicator showing penetration in the sector, grew at a rate of 14.6% during the past year. In addition, the number of customers specifically considered as agricultural exceeded 60,000, with an increase of 5.1% during 2019.

Spain is the fifth agri-food power of the European Union and contributes 11% of the Gross Value Added (GVA) of the community sector. According to an analysis carried out by Bankia Estudios, the agri-food sector accounts for 5.9% of the Spanish economy compared to 3.8% of the EU, although this figure is as high as 11% when the entire Spanish food chain (primary sector, food industry and trade and distribution) is included.

The sector is now facing huge challenges in a context of progress towards sustainable and intelligent production. Specifically, the agricultural sector is facing issues like sustainability and the fight against climate change, digitalisation, technological transformation, globalisation and protectionism, new trends in consumption and the need to protect local economies.

To help sector workers and companies to succeed with these challenges, Bankia is organising in the Bankia Forward conference in Agriculture in collaboration with corporate strategy consultancy firm NNSAI. The event will analyse trends in agricultural products, applications for new 4.0 technologies and emerging, innovative ways to reach consumers.

When it comes to business, Bankia Estudios sets out to boost sector productivity and profitability by attracting talent and investments, dimensioning of farms, generational succession and professionalism, increasing predictability for crop protection and boosting presence in larger markets unit price.

Bankia por la Formación Dual in the agricultural sector

Another aspect where Bankia wants to assist the farm sector is training. It does this through the Fundación Bankia por la Formación Dual, which sponsors useful training for local business activities in areas where farming is essential to the economy.

The Fundación Bankia por la Formación Dual has been involved in the following projects:

• A study in collaboration with leading sector players to define training needs in the sector and enhance the prestige of farming to inspire vocations among students.
• Creating a Dual Agricultural Vocational Training course specialised in porcine animals to create a source of trained workers in Castilla y León and Aragón.
• Additionally, through the Convocatoria de Ayudas Dualiza Bankia (Dualiza Bankia Aid Scheme), several schools and colleges, in collaboration with companies, have focused on farming, boosting viticulture in Montilla Moriles, training of farm foremen in Granada and educating young people in Albacete.