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Merger: PNC Bank Acquisition and Merger with BBVA Bank (5th Largest Bank in USA)

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Background

In June 2021, PNC Financial Services acquired BBVA USA, the US banking subsidiary of the Spanish bank Banco Bilbao, for approximately $11.6 billion. This acquisition included all BBVA USA branches, customers, and employees, making PNC the 5th largest bank in the US. The primary goal was to accelerate PNC’s expansion on the East Coast and gain access to new markets and clients.

By addressing the technological, operational, and branding challenges, PNC achieved significant cost savings, enhanced customer experience, and positioned itself for continued growth.

Challenges

  • Integration of Systems and Platforms: Merging BBVA’s aging infrastructure with PNC’s modern systems.
  • Customer and Employee Transition: Converting BBVA’s 2.6 million customers and 9,000 employees to PNC’s network and platforms.
  • Standardizing and aligning BBVA USA’s fragmented marketing and merchandising with PNC’s branding.
  • Infrastructure Upgrades: Replacing end-of-life network infrastructure and modernizing retail branches.
  • Operational Efficiency: Achieving cost synergies and operational efficiencies by optimizing and streamlining operations .

Solution

Led has implemented a comprehensive plan to address these challenges, including:

  • Technology Integration: PNC expanded its Cisco routing, switching, and wireless solutions to replace BBVA’s outdated infrastructure. This included upgrading to PNC’s Retail 6.0 branch network, making it the most modern public cloud-hosted retail branch platform.
  • Merchandising Asset Management: Implemented a new asset management portal to standardize and optimize in-branch merchandising, ensuring uniformity with PNC’s branding.
  • Data and Platform Migration: Migrated BBVA USA’s on-premises data and applications infrastructure to PNC’s platforms, including Salesforce and cloud-based Windows and Linux environments.
  • Automation and AI: Invested in robotic process automation, conversational AI, natural language processing, and machine learning to drive efficiency and innovation.

Tangible Outcomes

  • Successful Integration: Completed the technology integration in less than five months, converting 2.6 million customers, 600+ branches, and 9,000 employees over a three-day weekend.
  • Cost Synergies: Exceeded technology cost synergy targets, realizing millions in recurring savings. Achieved a net saving of $700 million per year.
  • Enhanced customer experience: The modernized branch network and standardized branding improved the overall customer experience.
  • Operational Stability: Maintained stability of all technology and network operations while absorbing a 25% increase in volumes.
  • Efficiency Gains: Recovered over 2,500 productive hours per day through automation, achieving multi-million-dollar annual run rate savings.
  • Future-Ready Template: Developed a global template for future mergers, positioning PNC for further expansion and acquisitions.