Changing demographics to fuel growth in Mexican Banking market
Temenos customers capitalising on new technology for banking services
GENEVA, Switzerland – 19 March 2013 – Temenos (SIX: TEMN), the market leading provider of mission critical solutions to the financial services industry, is playing a key role in helping to establish a more mature Mexican banking sector, one which can provide the stable financial underpinnings to enable Mexico to realise its economic potential.
Temenos has been providing leading technology to the Mexican banking sector for a decade, during which time it has built relationships with many of the industry’s fastest-growing and most successful players. Temenos customers include Bansefi, Banco Multiva, Bank of Tokyo Mitsubishi México, Sociedad Hipotecaria Federal, Banco Ve por Mas, C.I. Banco and Volkswagen Bank de México. As an example of how Temenos’ rich, multi-product offering can support customer growth, Banco Multiva has experienced more than 150% assets growth in the last 12 months, which would not have been possible without a strong core banking solution to support the business.
The Mexican banking sector has been little affected by the financial crisis with overall bank lending in the country expanding by 12.5% in the 12 months to September 2012. The sector’s growth is expected to be profitable and sustainable in the long-run thanks to sustained economic growth, the end of consumer deleveraging, low-cost and plentiful funding, and an over-capitalised banking system. In addition, the banking population is becoming wealthier: according to the World Bank, 17% of Mexico’s population – approximately 20 million people – joined the middle class between 2000 and 2010, yet analysts agree that banks haven’t developed an attractive range of products for this dynamic demographic. The growing sophistication of these consumer requirements and the inevitable increasing competition, is setting Mexico apart as a key growth area in banking – particularly as new entrants are emerging. In order to successfully capitalise on this market, banks need to have the flexibility to adapt their business models accordingly.
Industry Analysts Gartner states:
Mexico is the fifth-largest IT market among emerging markets1. Its economic growth is generating a new middle class of consumers with more power of consumption. Their tradition and cultural habits are competing with the evolution of technology, which creates a new, more demanding consumer. This is what we call the new Mexican consumer.2
Enrique O’Reilly, Temenos Regional Director for Latin America, said:
Having escaped relatively unscathed from the global financial crisis, Mexico has all the fundamentals to become the fastest growing economy in the Americas and one of the top ten largest economies in the world. However, this will only happen with a mature banking sector which can reach all parts of the economy and population. Investment in technology will be a key enabler of this.
To mark Temenos’ 10 years in Mexico, an event, being co-hosted by Microsoft and SOFGEN, will be held which will consider topics such as whether an increasingly ageing technology infrastructure can support potential future expansion; how banks should keep pace with innovation and evolving customer expectations and why channel proliferation requires increased integration to provide greater customer benefit This complimentary event will be held at the Hotel Presidente InterContinental Mexico City from 9am to 1pm on 20 March 2013. For further details please contact [email protected]