BBVA Compass economists examine mobile banking, crowdfunding, other trends in latest quarterly report

BBVA Compass economists examine mobile banking, crowdfunding, other trends in
                           latest quarterly report

- New technologies will transform the financial industry, the economists say

- Report also ranks each state's fiscal health, recognizes some top performers

PR Newswire

HOUSTON, July 3, 2013

HOUSTON, July 3, 2013 /PRNewswire/ -- The financial industry faces its most
dramatic transformation in modern history because of increased online and
mobile device usage, which will make banks more productive but also boost
competition from nonbanks, BBVA Compass economists say in their latest report.

This "transformation will result in a more efficient financial system that
will be in a stronger position to support economic growth and wealth
creation," the economists say.

Every quarter, the bank's economic research team publishes its Economic
Outlook, a report focused on a variety of issues that affect the U.S. as a
whole as well as the Sunbelt states where BBVA Compass operates.

In the recently released second quarter outlook, the economists examined the
U.S. economy, interest rates and technology topics, including mobile banking
and crowdfunding, also known as crowdsourcing. The increasingly popular trend
of crowdfunding allows businesses and individuals the opportunity to raise
money from a large pool of people and provides an unprecedented source of
capital, the bank's economists say.

"To succeed in this new hyperconnected and competitive environment, banks will
have to follow a customer-centric approach and offer simple, user-friendly and
effective products, with a high level of transparency and security," Chief
Economist Nathaniel Karp wrote.

Banks are ahead of the curve in mobile technologies, the bank's economists
say, after examining a 2012 Federal Reserve Board survey about mobile banking.

"Mobile banking will increase the productivity of the industry as banks will
have more information and ways to efficiently target users; however, these
technologies are also bringing more competitors: highly sophisticated
platforms with innovative business models and very low operating costs,"
according to the economists.

Economists also conducted a state-by-state budget analysis in the wake of the
recession that led to unprecedented fiscal imbalances. The fiscal situation
has improved greatly, with states such as California reporting budget
surpluses for the first time since the recession. However, states need to make
tough longer-term decisions about how to manage crises and balance fiscal
prudency with broad initiatives on infrastructure and education, among other
choices.

The economists' fiscal stress test, which measures the cyclical and structural
risk factors as it relates to a state's fiscal situation, found Tennessee the
least stressed and California, despite its progress, the most stressed. Texas
and North Dakota also measured well in part because of strong oil and gas
industries.

Karp and his team analyze the U.S. economy and Federal Reserve monetary
policy. For their analyses, the economists create models and forecasts for
economic variables such as growth and inflation, as well as for monetary
policy and other industries.

The bank's economic research group includes Kim Fraser, Jason Frederick, Boyd
Nash-Stacey, Marcial Nava, Shushanik Papanyan and Alejandro Vargas. Follow
their work on Twitter @BBVAResearchUSA.

About BBVA Group

BBVA Compass is a subsidiary of BBVA Compass Bancshares, Inc., a wholly owned
subsidiary of BBVA (NYSE: BBVA) (MAD: BBVA). BBVA is a customer-centric global
financial services group founded in 1857. The Group has a solid position in
Spain, is the largest financial institution in Mexico, and has leading
franchises in South America and the Sunbelt region of the United States. Its
diversified business is geared toward high-growth markets and relies on
technology as a key sustainable competitive advantage. Corporate
responsibility is at the core of its business model. BBVA fosters financial
education and inclusion, and supports scientific research and culture. It
operates with the highest integrity, a long-term vision and applies best
practices. More information about the BBVA Group can be found at www.bbva.com.

About BBVA Compass

BBVA Compass is a Sunbelt-based financial institution that operates 688
branches, including 352 in Texas, 90 in Alabama, 78 in Arizona, 64 in
California, 45 in Florida, 38 in Colorado and 21 in New Mexico. BBVA Compass
ranks among the top 25 largest U.S. commercial banks based on deposit market
share and ranks among the largest banks in Alabama (2nd), Texas (4th) and
Arizona (5th). BBVA Compass has been recognized as one of the leading Small
Business Administration lenders and ranked third in American Banker's 2012
reputation study of the leading 30 banks in the U.S. Additional information
about BBVA Compass can be found at www.bbvacompass.com.

Editor's Note:
BBVA Compass is a trade name of Compass Bank.

SOURCE BBVA Compass

Website: http://www.bbvacompass.com
Contact: Jena Moreno, Corporate Communications, 713-831-5867,
Jena.Moreno@bbvacompass.com
 
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