A study carried out by Backbase, a banking platform, and Americas Market Intelligence (AMI), revealed that 75 % of young people between 18 and 21 years old consider that neo-banks and fintech offer more attractive services for the young population than traditional banks in Latin America.

Mijael Feldman, executive director of Getxerpa, highlighted that with the emergence of fintech companies, competition and user demands for personalized services increased, where products are offered according to the profiles and preferences of each client. That is why “banks have to jump on the digitization bandwagon, with differentiated proposals.”

With the Application Programming Interface (APIs), or application programming interface, financial institutions are able to integrate user data and structure service offers according to their preferences and needs and thus improve services.

In Latin America, the law requires, in article 76 of the Fintech Law, more than 2,200 financial entities, fintech and even the Credit Bureau to provide information through APIS, which is classified into three types: open financial data, aggregates and transactional.

Opportunities for the financial sector

The traditional financial sector in Latin America has great opportunities beyond offering services digitally”. According to the information provided by Finerio Connect, 68 % of Mexican companies predict that open banking will promote the growth of the financial sector, 65 % that it will create greater competition and 92 % of the companies surveyed observe that associations with open banking providers banking will be successful.

The director of operations for the Americas of BPC, Mauricio Fernández, considers that the role of the user of open banking must be actively responsible. “The client is the owner of his data.”

While the users of the banking system want to have access to additional services. According to Backbase, “65 % of respondents want products that help consolidate savings and optimize finances and 72 % expect to use loyalty points or receive discounts when shopping online.”

For Mijael Feldman, banking must be digitized and it is not just moving services to the cloud. It is necessary to provide new digital channels for its users, as well as new products.

M. Rodríguez

Source: eleconomista.com.mx

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