One of the sectors in which Spanish savings banks have been slowest to enter is the business sector. However, in just a few years, institutions like Caja Madrid have managed to increase their market share. They have done so by creating a broad and competitive range of products and services tailored to companies, especially SMEs. In this interview, Fernando Sobrini explains his experience in the sector.
Fernando Sobrini, in his Caja Madrid office.
– How is the provision of services to companies organized by Caja Madrid?
At Caja Madrid, we have centered our relationship with businesses around one concept: customer specialization. We design products tailored to each entity, based on its size, sector, and above all, its management needs. To achieve this, we have a specialized network of centers, managers, and powerful management tools such as the Business Online Banking platform, which allows clients to streamline all their banking transactions with Caja Madrid without having to travel. It also provides a comprehensive range of products and services for their business under preferential conditions, simply for being a client. In addition to business managers, Caja Madrid has foreign trade specialists who offer full support for international operations, as well as two dedicated foreign trade departments. We have not only a specialized sales force, but also a support and design team that develops customized products and participates in all relevant forums, both public and private, dedicated to business internationalization.
– What role do SMEs play in the economy of the Community of Madrid?
In Madrid, over 90% of businesses are self-employed individuals and owners of small and medium-sized enterprises (SMEs). Therefore, we can say that SMEs are the cornerstone of our economy. This means that our institution focuses a significant effort on these clients, as Caja Madrid understands that smaller businesses require special support for their creation and subsequent growth. Some of the factors that positively influence business creation include entrepreneur training and information, access to subsidies, knowledge of legal and administrative requirements, streamlining administrative processes, and effective personnel management.
To address all these needs, Caja Madrid has developed solutions and made them available to its business clients. This includes its branch network, specialized managers, sponsorship of courses, seminars, and conferences, business products (such as debt collection management, advances on confirmed invoices, and payroll processing for small businesses), and the full range of information services available through its Business Online Banking platform. The bank maintains a dynamic relationship with businesses at all times, providing them with solutions.
– What support does Caja Madrid offer for internationalization? What recommendations does it give to companies considering entering third-party markets?
Our support is linked to each stage of the internationalization process that each company has planned. Generally speaking, and following the stages of a typical internationalization process, our support would revolve around four main tools.
The first step is to make Caja Madrid's proven solvency available to companies in all international markets. Wherever a company needs to expand its operations, Caja Madrid is there to support it. Next, we advise businesses on their chances of success in a given country. To develop their internationalization plan, companies must gain a deep understanding of each market. Third, we facilitate companies' entry into international markets. Our institution—individually or in partnership with other promotional organizations—organizes and promotes trade missions, investment forums, participation in trade fairs, and other activities. In this way, companies can benefit from Caja Madrid's support in events relevant to their industry or the destination of their exports.
Fourth, once the target markets are identified and potential clients located, it's time to finalize export, import, investment, and international establishment operations. At this stage, we provide our clients with a range of tools: information on companies interested in a specific product range; guarantees and sureties for securing and developing construction and supply contracts; efficient management of international payment methods; financial support tailored to the characteristics of each transaction; analysis and management of risks and coverage for international operations; currency insurance; Mapfre and Cesce insurance; and an internationalization line of credit for SMEs.
– What do you think are the main problems facing Spanish companies? Are they on equal footing with their European counterparts? Are there differences between the two?
From the perspective of the internationalization of SMEs, and acknowledging the dangers of generalization, I would venture to point out three serious problems. The first is their small size. The second is their lack of awareness of available support resources for expanding internationally. And the third is the absence of a business culture focused on internationalization, which would allow entrepreneurs to view it as a structural and necessary issue, not merely a temporary one.
Regarding the question of equality, I would venture to say that if we consider it in abstract terms, we could say that it does exist. However, if we look at the impact of the aforementioned problems, as well as the lack of a "Country Brand," we probably have to acknowledge the existence of some differences. Firstly, we are distinguished by the greater connectivity that exists, for example, between French or Danish companies and the regional or national bodies that promote internationalization. This allows them to quickly identify and take advantage of the opportunities and support offered both within their own countries and from the European Union. Secondly, and unlike what happens in France, Italy, Germany, and Austria, countries where the "Country Brand" is very strong, in Spain, currently, it remains weak in many regions of the world.
However, we must acknowledge that the growing participation of SMEs in initiatives launched by regional bodies and business organizations, as well as the dissemination of European programs and the campaign being carried out by ICEX to create and promote the "Spain Brand" worldwide, are generating a new business culture that will reduce the existing differences between Spanish and European SMEs. This is our challenge and our path to success.
– In Eastern Europe, Spanish companies have a symbolic presence. What might be the causes of this absence, and what measures would you propose to correct it?
We begin with the undeniable fact that Spain has limited trade integration with Eastern European countries. The reasons for this lie not in geographical distance, but rather in cultural differences and a lack of effort to foster closer ties and interest in these countries as a means of accessing Eastern European economies.
However, it should be noted that a slight improvement began in 1993, and that currently, Spanish exports to these countries are showing strong growth, having already exceeded a 4% market share. Therefore, in our view, these countries now represent an attractive market for Spanish companies.
Regarding measures to improve this situation, the first would be the so-called "Expansion Plan" launched by the Ministry of Trade and Tourism, whose main objectives are: eliminating barriers to market access; promoting exports and investments; implementing an information and communication plan; and strengthening the political presence and trade offices. These official measures should be followed by greater participation and presence of Spanish financial institutions and companies.
The accumulated delays will undoubtedly affect our companies' prospects in the short term. However, we believe that given the growing interest these markets are generating among Spanish companies, there will be a significant increase in trade flows, especially after the expansion.
– From your point of view, which markets or countries are most attractive to Spanish companies? Why?
To answer this question, I think it is appropriate to refer to several factors: the current development of the markets, geographical and cultural proximity, the differentiation of sectors and the objective of each company's internationalization plan.
The choice of markets will depend on the chosen internationalization plan. Clearly, if the main objective is the "offshoring" of production, then low production costs, rather than market size, will be the primary factor. However, in phased internationalization processes, we understand that initially, geographical and cultural proximity should take precedence.
Taking these factors into account, I would venture to identify the markets of greatest interest to Spanish SMEs. These would be, firstly, the European Union, including the candidate countries. Next, I would consider the Maghreb countries, such as Morocco, Algeria, and Egypt, among others, without forgetting China, Japan, and the Middle East. And subsequently, I would also like to mention Latin America, specifically Mexico and Brazil, as well as North America.
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