Overview of Infocorp’s Recent Study on Digital Banking in Latin America
Latin American banking continues to firmly advance towards deep digital transformation, although it encounters crucial strategic challenges in advanced personalization, organizational culture, and effective implementation of innovative models such as Artificial Intelligence (AI), Blockchain, and Banking as a Service (BaaS). This conclusion is drawn from Infocorp’s latest study, which surveyed leaders in the banking sector across 17 countries in the region, including Mexico.
Commitment to Technological Investment
The study, published by the leading provider of omnichannel banking solutions, highlights that the industry remains committed to technological investment as a key strategic element for future competitiveness, focusing on enhancing customer experience and financial inclusion.
“However, we consider it essential to overcome internal barriers and improve agile regulatory adaptability, aspects that will be crucial with flexible solutions and specialized partners to achieve concrete and rapid results,” the report states.
Technological Advancements and Digital Transactions
According to the study, most banks experienced technological advancements in 2024, and this trend is expected to continue into 2025. Furthermore, there has been a significant growth in the number of digital customers and transactions across almost all institutions. The opening of accounts is the most common transaction conducted digitally, with 82% of responses. This is followed by loan and credit/debit card requests (68%) and insurance contracting (38%).
“The predominant growth in digital transactions reflects an overall positive trend, yet it also indicates room for accelerating the digital migration in various financial institutions,” the report notes.
AI: Crucial but Underutilized
Infocorp’s fifth Latin American Digital Banking Study emphasizes that 80% of the surveyed banks in the region view AI and machine learning for personalization and operational efficiency to drive institutional innovation over the next two years, followed by blockchain for transparency and security.
In this context, 49% of respondents suggest a gradual adoption in critical areas; 33% anticipate slow, pilot-project-focused integration; and only 16% expect comprehensive integration in most operations.
“The prevailing cautious approach to technological adoption reflects a banking sector still hesitant, preferring to solidify results before embracing disruptive technologies,” the report explains.
Only 35% of banks expect to offer high-level service personalization through AI data analysis, prioritizing moderate personalization with customer segmentation.
Collaboration with Fintechs and Sustainable Services
The study also highlights other business models being explored by banks, such as:
- 39% of respondents indicated Banking as a Service (BaaS) with open API integration;
- 27% mentioned collaboration with fintechs to develop new products;
- 27% focused on creating sustainable and eco-friendly financial services.
“The growing interest in models like BaaS and fintech partnerships demonstrates that banks aim to expand their strategic reach through open ecosystems, recognizing that the future lies in collaboration rather than competition,” the report states.
Prioritizing Superior Digital Experience
The surveyed institutions agreed that superior mobile experience and a fully digital account product will be the most significant competitive advantages for banks regarding channels and technology in 2025. Other responses included offering Open Banking services and becoming a fully digital bank.
Key Questions and Answers
- What is the main focus of Latin American banking’s digital transformation? The primary focus is on technological investment for future competitiveness, with an emphasis on enhancing customer experience and financial inclusion.
- What are the key challenges faced by Latin American banks in their digital transformation? Banks face challenges related to advanced personalization, organizational culture, and effective implementation of innovative models like AI, Blockchain, and BaaS.
- How do Latin American banks view AI and other emerging technologies? 80% of surveyed banks consider AI and machine learning crucial for personalization and operational efficiency, with 49% planning gradual adoption in critical areas.
- What other business models are Latin American banks exploring? Banks are investigating Banking as a Service (BaaS), collaboration with fintechs for new products, and sustainable financial services.
- What do Latin American banks prioritize in terms of digital experience? Superior mobile experience and fully digital account products are seen as the most significant competitive advantages in channels and technology by 2025.
