BBVA Launches No-Fee Digital Bank in Germany With 3% Interest, Cashback, Crypto Services, and Faces Initial IT Challenges

Spanish lender BBVA has launched a fully digital retail bank in Germany, offering highly competitive conditions that challenge the traditional German banking market. The new online bank features a no-fee account, 3% interest rates, and cashback offers aimed at attracting customers. BBVA, a major publicly traded institution valued at nearly twice the market capitalization of Deutsche Bank, is expanding its digital banking footprint across Europe. However, the launch in Germany faced initial difficulties due to inadequately adapted IT systems and overwhelmed customer service. Despite these challenges, BBVA's entry is expected to pressure competitors in the German banking sector. Meanwhile, BBVA is also active in other markets, permitting operations with cryptocurrencies such as bitcoin and ether, and is planning to issue a five-year senior non-preferred bond in euros. Other Spanish banks like Santander and CaixaBank are exploring similar digital asset services and offering incentives up to 1,000 euros to new customers. In Spain, Revolut has reached five million customers, consolidating its position as the third-largest market in Europe after the UK and France. Additionally, Banca March has extended a six-month deposit at a 2.11% annual interest rate until mid-September.