- Regional change is driven by changing customer behaviour and demands according to 55% of banking survey respondents
- Latin American banks see a bigger impact coming from new entrants than their peers in the rest of the world (48% vs. 36% globally)
- For established banks, new payment players are the biggest threat according to 51% of respondents, followed by neo-banks (23%)
- Survey respondents think that in-house innovation centres (51%), accelerator/ incubator programs (48%) , and creating closed bank hubs (48%) are the best way to innovate
The report, written by the Economist Intelligence Unit (EIU) on behalf of Temenos, explores the theme: “Whose customer are you? The reality of digital banking in Latin America”. This regional report explores the developing situation for retail banks in Latin America and derives from the recently launched global which surveyed 400 banking executives globally and was conducted by the EIU and Temenos. The regional report emphasizes the need for Latin American banks to further develop their digital banking efforts in order to improve their products and services, restructure their cost base and attract new customers who may have never banked before. Legislation is also encouraging bank and fintech collaboration to deliver digital banking to the unbanked.
Latin American bankers have ambitious goals and a lot to achieve as they race to lead digital banking. They must revitalise their offering, cut prices and improve access. They also have to attract a lot of new customers who have never banked before or are wary of getting caught by high rates, charges and debts.