Spanish lender CaixaBank has bagged €70m from the European Investment Bank (EIB) to support its digitalisation programme.

With the capital, the bank aims to accelerate its innovation strategy that will extend up to 2020.

One of the priorities under the strategy is addressing security concerns through blockchain and facial recognition technology.

The bank will also look to deploy systems for mobile phone payments.

At the same time, it will explore the development of new credit card encryption technologies.

CaixaBank CEO Gonzalo Gortázar said: “A clear objective to promote technology with high value-added services in the interest of our customers and employees as well as to reinforce our socially responsible banking model has already been set out in our 2019-2021 Strategic Plan.”

EIB will offer the loan as part of its digital banking modernisation programme.

The initiative offers Spanish lenders up to €300m in direct loans for their innovation plans.

The latest partnership has been welcomed by EIB vice-president Emma Navarro.

Navarro said: “The digital era in which we are living is forcing European banks to innovate with respect to both their products and their information management processes.

“It is a vital step in maintaining competitiveness.”

Moreover, CaixaBank received a €100m guarantee for an existing loan portfolio from the EIB and the European Investment Fund.

This is said to allow the bank facilitate the mobilisation of up to €600m of extra funding for Spanish SMEs and mid-caps.