Written in FINTECH he
Despite the fact that one of the main purposes of the financial system of each country is to have banked to its users or rather: achieve a financial inclusionthe truth is that doing it the right way always involves a series of challenges that traditional banking must face.
For this new year in progress, things will not be different and after seeming that the bankarization in Mexico has been advancing by leaps and bounds, the banking in Mexico must begin to change seeking to attend, above anything else, the needs of users of the financial sector.
According to the latest press release from Finerio Connecthighlight that the banking in Mexico in the short and medium term, will present a series of challenges very specific, here we tell you what they are.
Challenges of traditional banking in Mexico
Nick Grassi, Co-CEO of Finerio Connect, a Mexican integrated finance startup; points out that these will be the 5 challenges of Banking in Mexico:
1. More competition from fintechs: According to records from Finnovista’s latest Fintech Radar, there are more than 500 fintechs in Mexico,
showing double-digit growth over recent years. To the extent that this ecosystem continues to expand, banks will see their operating range diminished, unless they use a shared digital infrastructure.
2. The perpetual digital transformation: The Covid-19 pandemic accelerated processes of digital transformation and inclusion
technology around the world, a trend that will not be reversed in the near future. According to estimates from the International Monetary Fund (IMF), in 2023 the world gross domestic product (GDP) is 65% digitized. This requires banking to stay on the cutting edge of technological advances perpetually.
3. Truly know the users: “Above all, models such as Open Banking allow for a free flow of information in the financial sector so that competitiveness is optimal. The use of data in financial institutions accurately maps users and their needs.
4. Economic uncertainty: Inflation stood at 7.94% last January. This price variation generates uncertainty and even fear in the general population; particularly, in a country like Mexico where money is the main motivator of stress in people. At times like this, banks must know how to become a support for their users.
5. The consolidation of Banking as a Service: The bank and the fintech They have created a diverse and solid financial ecosystem and part of the development of this duo involves the use of state-of-the-art technological tools and the understanding of collaboration. An example of this is Banking as a Service, which has allowed these institutions to offer new and better products. and financial services through APIs.
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