July 14, 2024

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The advanced services that users want in digital banking |  cooperation

The advanced services that users want in digital banking | cooperation

According to a study by Americas Market Intelligence (AMI), commissioned by Backbase Latin America, Online banking is no longer enough to satisfy Latin American banking consumers from today.

From faster setup, improved banking functionality, and non-traditional services, the Latin American consumer is looking for a file Consistent digital financial expertise from start to finish, Little study.

(I see: Banco de Bogotá Digital Banking, one of the best banking services in the world).

Given that many consumers still use traditional banks as their main provider of financial services, the study showed that 81% are aware of the existence of domestic digital banks (new banks and “fintech”) and 45% are already using them for specific service needs.

banking study”future proofIn Latin America, it analyzes the evolution of trends, preferences, and expectations of 700 consumers from 7 Spanish-speaking countries, including Argentina, Chile, Colombia, Costa Rica, Mexico, Panama and Peru. The report also contains the views of digital and retail banking managers at five central banks in the region.

It is clear that consumer expectations are constantly evolving. In order to remain competitive, conventional banks are tasked with avoiding the use of outdated technology in silos to facilitate faster market access strategies.said Ethan Clark, Vice President of Latin America and the Caribbean at Backbase.

(I see: Colombian digital bank Lulo Bank, authorized to operate).

“With the right resources and alliances, banks will be able to anticipate consumer demand rather than respond to it. Additionally, moving towards a ‘interbanking’ platform will allow banks to maintain their core banking systems while having access to the latest technology, functionality and digital best practices.”

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The study states that with restrictions derived from COVID-19, Consumers suddenly had to shop online And digitally manage money between friends and family, which made it necessary to open a bank account.

In fact, Latin America has seen the highest growth in bank account penetration in the past 10 years. AMI estimates that in 2020 alone, Banks in the region have accelerated their digital plans for at least 24 months And in some cases, much more.

It also states that the prevalence of digital account openings rose to 60% among consumers last year, indicating a strong trend towards online customer acquisition.

(I see: The epidemic caused financial operations).

Across the different markets surveyed, 42% of consumers claimed to have opened a bank account online. While Panamanians (60%) were more willing to adopt digital, Mexican consumers (23%) lag far behind.

The study notes that although the banks interviewed said they enabled the digital onboarding process for the first time in 2020, their operations still need to be improved.

Among the 42% of consumers who opened an account online, 28% indicated that they were forced to visit a physical branch to complete the process.

To deliver an end-to-end digital setup with maximum privacy and security, the adoption of innovative technologies, such as biometrics, API communications with national identity records, and the ability to capture digital signatures is essential.says the report.

Another concern consumers shared was the duration of the digital onboarding process.

Just over a quarter (28%) of those surveyed said their online account opening experience was less than five minutes away. Peru (44%) and Mexico (32%) led this category. Conversely Chile (21%), Colombia (24%) and Costa Rica (21%) They stated that the process took 20 minutes or more, which exceeds industry standards.

Although the most popular online banking operations are transfers, payments and balance enquiries, 54% of digital banking users say they would like to have Additional functionality in their banking platforms.

Some of the more advanced services that consumers expect are Transfers to other banks in real time, International transfers, automatic recurring payments, payments through mobile wallet and QR code.

(I see: The use of digital banking platforms increased by 59% under the epidemic).

Another relevant trend the study shows is that consumers in Latin America are looking for digital platforms that cater to multiple needs simultaneously, and they expect something more from the banking operations offered by their banks.

For example, when asked about “additional services you would like to get”, respondents expressed interest in shopping platforms, 72% expressed interest in online portals to use their loyalty points or receive special discounts, and 61% expressed interest in the web. Online purchase portal.

Two-thirds (65%) asked another Tools that will help them save money and improve their financial situation, And 40% became interested in social media and online food delivery services.

(I see: What does creating a new digital banking channel mean?).

In today’s market, traditional banks are often seen as safer, which is why 99% of participants use traditional banks as their main provider of financial services. However, the new digital players are becoming much more than an accessory in the financial life of consumers, responding to specific needs such as facilitating instant transfers and payments.

In addition, new banks and fintech companies offer other banking services that would normally be expected from traditional banks, leading to increased cCompetition and pressure to speed up time to market.

When participants were asked to compare these disruptive agents with their current financial service provider, the majority of respondents indicated that they found these digital actors easier to use (59%) and more convenient (55%).

The study concluded that the banking services of the future in Latin America are essential to the long-term viability and survival of banks.

(I see: Banking Business Challenges to Overcoming and Keeping ‘Borns’).

Everything is moving towards customer-centric platforms and operational frameworks. Banks must adapt to this framework by enabling a “banking engagement” platform with the ability to add functionality to meet changing customer requirements.Report closed.