Twenty years ago, when BBVA first began to transform itself into a digital bank, collaboration between institutions and startups was unusual. In contrast, BBVA recognised that it would need to engage with the external ecosystem to grow and support the needs and ambitions of its customers, clients, and colleagues. What makes BBVA unique is its ability to draw on its global scale and expertise to support startups.
As part of the bank’s digital transformation strategy, Open Space in Madrid was launched in 2010 to provide a physical space where the entrepreneurial world connects. The space was intended to be a tangible representation of the bank’s commitment to collaboration, providing a source of inspiration and knowledge for both the startups based there and the representatives of BBVA that use it.
Physically located just off the Plaza de Alonso Martínez, a square that links different districts of the city, it is home to the bank’s Open Innovation team, and is considered a valuable tool in accelerating the digital transformation of the entire finance industry, supporting the local fintech ecosystem, and creating opportunities for entrepreneurs by connecting them to the core of the bank.
Ignacio Villoch, Open Innovation Senior Ecosystem Builder and creator of the Open Innovation Community at BBVA, describes Open Space as an oasis, a watering hole for those who wish to quench their thirst for innovation. Rather than just sitting back and letting change take place, he believes it connects startups and entrepreneurs with “local forces” that are “making things happen in an era of great change”.
Slightly less poetic, but no less enthusiastic, Alejandro Villalonga, founder of Lendmarket, one of the fintech startups based in Open Space Madrid, agrees. He believes it offers companies like his, two significant advantages: affording fintech startups the opportunity to better understand the needs of big banks like BBVA, and allowing them to be part of an ecosystem of fintech entrepreneurs, where they have the chance to interact with experts in new technologies such as blockchain and AI.
Building windmills
There is an ancient proverb that says, “When the wind of change blows, some people build walls, others build windmills.” It’s Villoch’s belief that, in the current climate of political and economic ambiguity, uncertainty, and volatility, there’s no better place for a company to start designing and building its next windmill than the BBVA Open Space Madrid.
Indeed, many such windmills have been designed and built in the Open Space. BBVA Data & Analytics, the bank’s own data science practice, recently spun out an Open Space Big Data project to examine the digital footprint of money in the context of a Smart City, for example.
And several startups have scaled up since being incubated in the Open Space.
Since it joined the community less than two years ago, for example, Lendmarket, a secondary market for SME loans that enables lenders to sell their loans to professional investors, has improved its business model and honed its product offering to deliver a very specific value proposition. The company has recently begun its second fundraising stage and will soon move to another location to accommodate the growth of its team.
Key to this, says Villalonga, was the opportunity to meet various VCs and business angels at BBVA’s regular networking events. Each of these events, either organised or hosted by Open Space, is built around a different theme, such as innovation, entrepreneurship, or digital transformation. Quarterly BBVA Open Talks, with well-respected speakers and high-quality content, have proven so successful, they’re now being rolled out in Barcelona, and in BBVA’s Open Spaces in Mexico City and Bogota.
A unique community
Another startup that has been incubated at Open Space Madrid is MiCappital – a platform that helps people in Spain to invest their money. You could think of it as a digital advisor.
For Miguel Camiña, Co-Founder of MiCappital, one of the most significant benefits of being based at Open Space is that the team is connected to the wider BBVA community. Miguel and his team have built a community of friends and advisors at Open Space, by attending many of the events that are hosted there and making themselves available to representatives from the bank.
Being able to easily connect with the BBVA community has helped Miguel to iterate his product and respond to what customers need. For example, he worked with representatives from BBVA to streamline the onboarding process for MiCapital’s customers.
The company has had the opportunity to meet VC investors from elsewhere in Europe, which Miguel believes will be hugely valuable for the future when MiCapital launches in other countries.
Drawing on a rich resource
Of course, the Open Space concept is beneficial for BBVA too, expanding its geographical footprint and enhancing its brand positioning as a major player in the fintech arena, not to mention informing its own internal innovation. But to Villoch, it is a labour of love.
He joined the project at its conception, seeking a change of career after 15 years in the business world and increasingly curious about innovation. Quickly infected by the entrepreneurial spirit, he sees what he does as being an attitude and a lifestyle that far transcend regular job duties.
Describing his role as an ecosystem builder, he feels genuinely privileged to be on the leading edge of innovation, discovering new ideas, projects and people every day, and funnelling these new relationships and knowledge back into the company and the wider fintech community.
Located in a city of innovation, BBVA Open Space Madrid draws on a very rich resource. It stands on a natural crossroads where, according to Villoch, different tribes have historically mingled, getting together to trade and share. By enabling this collaboration to continue long into the future, BBVA Open Space Madrid is set to fuel the growth of the finance industry for years to come.
