- The new study also finds that, while consumers see the value in digital banking, less than two thirds are familiar with the integrated banking channels (internet and mobile) available to them, indicating a broader need for awareness
- “Digital to the Core – Mexico” brings together TEMENOS executives and local bank and government leaders to discuss the latest challenges, and reach the 9 / 10 consumers in emerging markets who currently don’t have access to secure financial services1
MEXICO CITY, Mexico – April 19, 2018 – TEMENOS (SIX: TEMN), the banking software company, today released findings from a survey, showing how the everyday consumer in Mexico sees financial services. While banks and financial institutions have long been aware of the impact that the digital revolution is having on the industry, consumers now are starting to see the impact too. This new research found that 64% of Mexicans believe the future of banking is a cash-free society where alternative payment methods such as contactless, wearable and smart phones will be utilized.
TEMENOS commissioned research firm Toluna to conduct the study into Mexicans’ perceptions and expectations regarding digital banking. The results were reached after polling close to 400 Mexican consumers, and were revealed at TEMENOS’ event “Digital to the Core – Mexico”.
During the panel “What is a digital bank?”, Enrique Ramos O’Reilly, TEMENOS’ Regional Director – Latin America and the Caribbean, said:
“Digital banks require scalable technology to manage the cost of growing their banking platform and operations. Moreover, they need technology that empowers them to address the threats of disruption, disintermediation and commoditization. But more than that, they need to use these changes to their own advantage, and meet consumers where they are – whether that be in the branch or on a mobile device. What is fascinating from this research is that although less than 63 per cent of respondents understand how the new technology works, almost everyone recognizes its necessity in order to generate business opportunities and propel the economy forward.”
According to previous TEMENOS research, nine out of 10 people that live in emerging markets lack a safe place to keep their savings, as well as a source of credit. Modern core banking technology and cloud based Software-as-a-Service (SaaS), helps to solve such issues. Solutions like TEMENOS’ T24 Core Banking paired with the cloud, enables smaller financial institutions to gain access to the same technology used by some of the largest, most modern banks in the world.
Despite not fully understanding the ways the new technologies work, three of every four Mexican consumers surveyed said they feel secure about digital banking in their business. Trust in financial technology was at the forefront of a bill passed last month by Mexico’s lower house of congress. The bill intends to regulate the fast-growing fintech sector, prevent money laundering, and promote financial stability through technology. During the conference, keynote speaker Javier Tello Díaz, political analyst, spoke about the country’s political context for 2018.