Finnosummit
  • Qué hacemos
    • Events
      • FINNOSUMMIT 2025
      • FINNOSUMMIT Connect 2024
    • Insights & Research
      • Finnovista Fintech Radar
      • Informes
    • Startup Programs
      • FINNOSUMMIT Challenge
      • Programas pasados
    • Get Involved
      • FINNOSUMMIT 2025 Sponsorship opportunities
      • Insight & Research Sponsorship
      • Startups Program Sponsorship
  • Contenido
    • Blog
    • Multimedia
    • Informes
    • Finnovista Fintech Radar
  • Quiénes Somos
    • Finnosummit
    • Equipo
    • Trabaja con nosotros
    • Prensa
    • Community Partners
  • Contacto
  • ES
  • EN

Eventos

Get off the bench: free lunch is over for banks?

29 septiembre 2016Finnosummit

  • Home
  • Noticias Eventos
  • Get off the bench: free lunch is over for banks?

That is a guest post from Juan Mazzini (Senior Analyst in Celent), a collaborator for this special section.

A few years ago when we started collaborating in creating the Latin American Fintech community there were no Fintech associations, no Fintech conferences and for sure there was no mapping of Fintech start-ups at all. It has been quite a journey for all of us involved. Kuddos to the Finnovista team for being a key element and catalyser for these achievements!

What exciting moment to be in financial services! Many things going on. Banks are being unbundled; and its happening everywhere. Want to take a look? Check what’s going on in the US, Europe and in more near places across Latin America like Mexico, Brazil, Colombia, Argentina and Chile. It’s making no distinctions, affecting personal and business banking equally. Consequently, the nature of competition is changing; and pressure is not expected to come from other financial institutions. In a recent Celent survey, to SME banking representatives from Latin American banks, most believe that fundamental changes that are expected to occur in the banking industry won’t come from other financial institutions; instead they are looking mainly to new entrants and adjacent industries.

Personal and Business Banking Unbundled

juanmazzini

Source: Singapore Fintech Consortium

In last year’s survey to retail banks in Latin America, Stanford University found that 47% of the banks see Fintechs as a threat. The same survey indicates that only 28% of the banks meet the needs of their digital customers. Not a position where you want to be.

Customer expectations, pressure on revenue and cost, and increased regulation don’t make the life easier for banks either. Fintech start-ups may advantage banks on responding to customer expectations and being leaner has Fintechs better positioned to pressure on costs; but they have to play under the same regulation and at some point earn revenues in excess of cost (a.k.a. be profitable).

FCA, the U.K. financial regulator, has opened its sandbox for applications from financial firms and tech companies that support financial services. Successful applicants can test new ideas for three to six months with real consumers under loosened regulations. This is something we haven’t see yet in Latin America, though regulators are increasingly open to the benefits of Fintech and innovation, particularly if it is related to financial inclusion: we have seen the support of regulators to mobile wallets across the region in the last couple of years. Mexico appointed this year an officer for Fintech development in what I see as the leading case in the region to facilitate the adoption of services provided by Fintechs under the umbrella – and supervision – of the regulator. Most lately, the Argentinean regulator has introduced changes enabling digital onboarding, and in payments facilitating competition and adoption; though no sandbox yet, but maybe a digital/branchless bank in the way? Will it be a disrupting incumbent or a new player? By themselves or in cooperation with Fintechs?

Indeed, there has been a lot of debate regarding the nature of the (best) relationship between banks and Fintechs; be it competition, cooperation or coopetition, banks need to play a different game. The ecosystem has changed incorporating a myriad of players and increased complexity. Banks must reconstruct their business models around three areas, recognizing that they are part of a broader and new financial ecosystem:

  • Channels: How the bank serves customers
  • Architecture: How the bank organizes to deliver value
  • Innovation: How the bank delivers new ideas, products and services around both channels and architecture

Banks can innovate on their own, or partner with Fintechs or other 3rd parties; at the end of the day banks need to select and execute on the best innovation models. There is no single answer that fits all; each institution will have to discover the best combination of innovation models aligned with risk appetite, organizational culture and the target customers you want to reach.

About Juan Mazzini

Juan Mazzini is a senior analyst responsible for expanding Celent’s coverage of business strategy in IT for Latin America. He’s based in Miami and has 18 years’ experience in the banking and insurance technology industry. He has a deep knowledge of both central and client-facing systems as well as operational business models. His consultancy concerns technology strategy, insurance matters, central banking systems, business strategy and system choices. Before joining Celent, Juan was Corporate VP of Sistran where he contributed directly to its expansion in 14 countries including principle Latin American markets. Juan has a business administration degree from the Universidad Católica Argentina. .

Síguenos

Categorías

  • Multimedia
    • Videos
    • Webinars
  • Noticias
    • Ecosistema
    • Eventos
    • Fintech
    • Startups
  • Prensa
    • FINNOSUMMIT
    • Finnosummit
    • FINNOSUMMIT Challenge
    • Finnovista Fintech Radar
    • Informes Finnosummit
    • Startups programs Finnosummit
logo-finnosummit-blanco

mex-skyline

MÉXICO

Av. Álvaro Obregón 213, Roma Nte., Cuauhtémoc.
06700 Ciudad de México, México
Teléfono: +52 55 44428341

  • Qué hacemos
    • Events
      • FINNOSUMMIT 2025
      • FINNOSUMMIT Connect 2024
    • Insights & Research
      • Finnovista Fintech Radar
      • Informes
    • Startup Programs
      • FINNOSUMMIT Challenge
      • Programas pasados
    • Get Involved
      • FINNOSUMMIT 2025 Sponsorship opportunities
      • Insight & Research Sponsorship
      • Startups Program Sponsorship
  • Contenido
    • Blog
    • Multimedia
    • Informes
    • Finnovista Fintech Radar
  • Quiénes Somos
    • Finnosummit
    • Equipo
    • Trabaja con nosotros
    • Prensa
    • Community Partners
  • Contacto
ES
  • ES
  • EN
    Finnosummit
    Las cookies de este sitio web se usan para personalizar el contenido y los anuncios, ofrecer funciones de redes sociales y analizar el tráfico. Además, compartimos información sobre el uso que haga del sitio web con nuestros partners de redes sociales, publicidad y análisis web, quienes pueden combinarla con otra información que les haya proporcionado o que hayan recopilado a partir del uso que haya hecho de sus servicios.
    RechazarMostrar detallesAceptar todas
    Manage consent

    Resumen de privacidad

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
    Necessary
    Siempre activado
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDuraciónDescripción
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    Guardar y aceptar
    Desarrollado por WebToffee Logo