Creand Crèdit Andorrà CEO Xavier Cornella on Consolidating a Bank for the Future

Creand Crèdit Andorrà CEO Xavier Cornella on Consolidating a Bank for the Future

The Crèdit Andorrà Group has completed the unification of the Creand brand in Andorra and internationally, one of the major goals of the 2020-2023 Strategic Plan. The process began in 2020 with the international subsidiaries and was completed this year with the rebranding in Andorra. The group is entering a new era, projecting its solid track record into the future.

Creand is a global financial services group offering a personalised and specialised private banking and asset management service. It is the market leader in Andorra and has a presence in other major financial hubs of Europe and America, such as Spain, Luxembourg and Miami.

Creand Crèdit Andorrà’s award-winning success is ongoing in 2023, once again being named as Andorra’s Best Digital Bank and Best CSR Bank at the annual Global Banking & Finance Review Awards.

Xavier Cornella

When Creand Crèdit Andorrà CEO Xavier Cornella met with Wanda Rich, Global Banking & Finance Review editor, he explained the reason behind the bank’s good performance in the last year. “It stems from the fulfilment of our 2021-2023 Strategic Plan, underpinned by the development of strategic alliances and corporate operations, to strengthen our leadership in Andorra and consolidate our international presence in the main markets in which we operate,” he began. “We have continued to strengthen operations and improve profitability with a business volume exceeding EUR 25 billion in 2022, 19.7% more than in 2021.”

The Creand group consolidated the growth trend in its main business figures, and in 2022 achieved EUR 43.1 million in profits, 30.7% higher than the previous year. Moreover, its international growth continued its upward trend with a 14.8% increase in international business volume. “This growth, coupled with our specialisation in products and services that increase differentiation and added value, are the drivers that have enabled us to reinforce our position as a solid group that grows stronger every year,” he said. “This means we are able to successfully deal with the challenges presented to us by our shareholders, customers, employees and the country as a whole.”

Strategic operations have been key to this growth, he explains, citing the example of the acquisition of Vall Banc, whose integration process was completed in June 2022 and which led to significant growth last year. “This acquisition has enabled us to bolster our growth plan and become more competitive in the private banking business, complementing the sustained organic growth that the bank has been enjoying both in Andorra and globally in recent years.

“At the same time, it consolidates our leadership in Andorra and strengthens our long-term commitment to the country’s economic and social progress. In turn, we have been able to accelerate the achievement of the targets set out in the 2021-2023 plan, both in terms of business volume and profits.

“This operation was executed with the utmost agility and efficiency, and was financed entirely with our own funds. The result is a stronger and more robust group. This has a direct impact on our capacity to serve customers, particularly in the private banking segment in which Vall Banc specialised, and to respond to the country’s future challenges. We have also been able to integrate the best talent from both banks, giving us a highly professional and specialised team.”

Another of the group’s 2022 achievements that contributed to its good results was the international brand unification process of Creand, Xavier revealed. “The rebranding allowed us to increase synergies, be more efficient and effective in terms of business and communication, and unify the sense of belonging among the people who form part of the group. The process will culminate this year with the change of the brand in Andorra. It represents a major step forward for us as an international financial services group.”

Creand Crèdit Andorrà’s long-term prioritisation of sustainability remains an integral part of the business’s vision, Xavier reports, not least because of the role it plays in supporting and stimulating Andorran society, its economy and its business community. “Sustainability is at the heart of what we do. It is a fundamental pillar for a bank such as ours, which has been working for over seventy years with a strong vocation for service,” he said. “The Creand group generates an economic value that extends beyond customers, shareholders and employees. In fact, 38.4% of the value generated through our activity is aimed at Andorran society as a whole. We also have significant loan investment in financial support with a direct benefit to the country.

“We want to grow as a bank because we believe that, through our strength and robustness, we can help Andorra with the important challenges it faces. But we want to grow while creating a bank of the future. This is why we were the first Andorran bank to sign the United Nations Principles for Responsible Banking. This is a strategic step in that direction, which positions us as pioneers in the area of sustainability in Andorra.”

Becoming a signatory to this initiative has enabled Creand Crèdit Andorrà to coordinate and work throughout all levels of the organisation to identify the bank’s potential, generate a greater, more positive impact through its activity, and integrate sustainability in all business areas. “It is clear to us that we have a key role to play in this field, and our management is committed to pursuing growth with a view to contributing to a sustainable future.

“Contributing to economic and social progress, as I have mentioned, is a core aspect of Creand Crèdit Andorrà,” he went on. “This objective also led us to participate in another operation, this time in the skiing industry, and we are now an active part of the new company SETAP 365, which represents the merger of the ski resorts of Soldeu, El Tarter, Arinsal and Pal in Andorra. This will enable us, as a country, to be more competitive in the international markets, with the all-country snow business unified under the Grandvalira brand.”

Along with sustainability, digital transformation is another essential pillar of Creand Crèdit Andorrà’s strategy, which it is pursuing on the basis of innovation, quality, inclusion and specialisation. “Our strategic goal is to respond to an ever-changing customer base and achieve digital engagement through personalisation and our enhanced omnichannel experience, which improves usability and makes it easier for businesses to handle payments.”

He does emphasise, however, that even with such a level of technological innovation, it is that most fundamental feature of customer service that will define the Group’s future success. “That is why we strive to offer a personalised service that enables us to connect with customers, offer an optimal digital experience, and respond to their needs with the highest possible level of specialisation. Our strategy is to continue increasing business through the commercial offering and operations in the online channel, constantly improve the range of mobility and mobile payment applications, implement remote customer service tools and digitalise processes, such as digital signatures, all with a view to offering secure and sustainable services.”

Xavier highlighted Creand Crèdit Andorrà’s fast-track onboarding process as an example of this strategy in practice. “This innovative project allows for a close and personal relationship with customers, which simplifies processes and makes it possible to streamline and digitalise procedures. We are fully engaged in the creation of a bank of the future, driving a strategy based on embracing the new digital economy through business.”

Another phase of this strategy is guiding customers through the entrepreneurial ecosystem via the bank’s ‘Innovation Hub,’ an initiative he describes as “a pioneering project to generate and share knowledge between Andorra’s SME community and the start-up sector,” enabling users to find opportunities for mutual collaboration and boost business. The project, which has been developed by several areas all across the bank, brings together different economic players, professionals and companies under a common goal: innovating as a network and generating new business. “This project represents a further step in our drive to promote an ecosystem of innovation in Andorra, with the aim of sharing the knowledge generated both by the country’s companies and the new players, the start-ups. The idea is also to encourage collaboration between the different parties to generate added value for our customers, as well as in terms of our country’s economy and society.”

Given the way the business is constantly evolving, for Creand Crèdit Andorrà, this involves continuously looking to upgrade its value proposition, in which specialisation and expert advice is prioritised in terms of the product offering, technology, and digital transformation. “We have been pioneers in payment methods and mobile payments, and we are now working to consolidate our position in the instant payment sector,” Xavier said. “Also, 2023 marks five years since we launched Merkaat, the first 100% digital investment service in Andorra, which gives customers access to a premium offer. We have recently incorporated new functionalities such as the discretionary portfolio management service to offer greater convenience for customers, who can delegate the management of their investments.”

As the 2021-2023 Strategic Plan approaches its end, Xavier concluded with an update on what comes next and how the bank intends to build upon recent progress. “We are now working on designing the 2024-2026 Strategic Plan, with the aim of making Creand Crèdit Andorrà a benchmark for customer service, innovation and digital transformation, ensuring excellence and sustained and sustainable growth, both in Andorra and the other geographies where we have a presence,” he revealed. “We will continue to pursue the growth trend in the main business figures established in recent years. This translates into an increased contribution to the economic development of our shareholders, customers and employees, as well as to the progress of Andorran society.

“At the same time, sustainability and commitment to the environment in which we work will continue to be two fundamental axes for maintaining this growth and strength in order to consolidate a bank of the future. For this, we can rely on one of our most important assets: our expert and engaged in-house team that is committed to this shared goal.”