Wizink wants to fire 144 non-digital employees after the settling of the Supreme Court ruling
WiZink prepares an employment regulation file (ERE) for 144 employees. The bank owned by Varde Partners It currently has 1,520 employees and will initiate formal talks with workers’ representatives in the coming days, “with the aim of reaching the best solution for both parties,” the company said in a statement.
Wizink has recently been hit by a March 4 ruling about the revolving cards, which until now was its star product. This will increase the litigation of its products, leading the financial institution to a higher cost of litigation in the future. Wizink has limited the cost of revolving cards to 20% interest, which is roughly what the Supreme Court indicated as interest.
From the bank it is believed that the product of the revolving cards will continue to be marketed since all the Spanish banks do it
From the market it is believed that the product of the revolving cards will continue to be marketed since all the Spanish banks do so. But it is believed that the transparency with which it is carried out will have to be changed. The Ministry of Economy is preparing a ministerial order to give clearer rules on how to market this product.
As a result of this ruling and with the impact of the coronavirus crisis, the entity has decided to communicate the transformation of its strategy that involves the dismissal of approximately 10% of its workforce. Market sources consider that in a situation of this type, Wizink has to bet on reinforcing the jobs with more digital training and on doing without those with less capacity.
The bank wants to diversify and focus less on revolving cards to be able to offer other financial products, which are very focused on credit such as insurance. The company has already advanced in this strategy by launching its marketplace and already offers two insurance products, one from Mapfre and the other from Caser, but its commitment is to continue advancing in this strategy.
WiZink’s priority is to advance the digitization and diversification of its business in a complex market context
The entity’s main strategic objective is to transform its main credit card business to become a bank specialized in consumer credit and 100% digital savings. For this, in addition to business diversification, digitization and the commitment to big data, “it will simplify your organization to be more agile and efficient,” said Wizink.
WiZink’s priority is to advance the digitization and diversification of its business in a complex market context, while continuing to facilitate credit and offer new products in a more digital environment to its clients, it has informed in its statement.
The company is immersed in the digitization process, wanting to explore gaps in the market that are not yet worked on.