Digitalizing the Mexican Banking SystemWed, 02/21/2018 - 12:28
Transitioning from physical banking to a digital-led system encompassed a series of challenges that few banks in Mexico were willing to take on. New demands regarding users’ experience and the banks’ growth requirements, among others, have paved the way for the expansion of e-commerce and e-banking services, says Danilo Ochoa, Regional Head of Digital Sales Banking and Payment of Gemalto. “2016 was a year of radical changes. We saw several banks migrating to digital platforms, focusing on user experience and venturing into mobile payment transactions,” he says.
Another growth opportunity comes from the inclusion in the banking system of new clients, for which the millennial generation offers an attractive pool of potential clients. Nevertheless, wooing this generation to the banking system represents a challenge on its own: “You have a very young sector that is not interested in going to a bank and waiting in line,” says Ochoa.
Catering e-banking services to the millennial generation is a major challenge but Ochoa believes there are other factors that need to be considered. “The difficulty we are encountering is more related to internet access.” The process of becoming part of a digital world is not exempt of risks. Even though several companies, such as Gemalto, work in providing security solutions for e-banking and e-commerce services, Ochoa says that in Mexico, internet users are reluctant to dabble in these services due to security concerns. This is a matter of prevention instead of reaction. “The industry is working alongside security companies to improve this.”