Introduction to Banco Azteca and its Digital Transition
Banco Azteca, a prominent financial institution in Mexico, currently serves 23.4 million customers, with 60% of their transactions being digital. Despite the growing trend towards digitalization, Tonatiuh Rodríguez Gómez, Director General of Azteca Servicios Financieros, believes that a complete transition to a fully digital model in Mexico is unlikely in the near future.
The Persistence of Cash and the Hybrid Model
Rodríguez Gómez explains that while the shift towards digital banking is inevitable and accelerating, expecting a fully virtual financial system within the short term is unrealistic. He emphasizes that Banco Azteca has adopted a hybrid approach called “Phygital,” blending physical and digital experiences.
- Physical branches and teller windows remain crucial for operations.
- Digital services offer increased speed and flexibility, complementing physical services.
“Any digital model requires cash to become digital and for digital currency to turn back into physical. This ‘magic’ happens at teller windows and correspondent banks,” Rodríguez highlights.
Investing in Technology for the Popular Sector
Although Banco Azteca focuses on serving the popular sector, Rodríguez Gómez stresses that neglecting technological investment is not an option. Instead, he asserts that this segment deserves top-tier tools and applications.
“We believe that people in our sector deserve high-quality applications with cutting-edge technology, as they also require agile and secure services,” he points out.
Learning from Fintech Companies
Rodríguez Gómez acknowledges that traditional banking can learn from fintech companies, particularly regarding user experience.
- Fintechs have set trends in approaching new generations.
- Their applications are user-friendly, and communication is clear.
He notes that the primary distinction between a bank like Azteca and a fintech lies in user relationship and knowledge. Banco Azteca knows the residences of 80% of its clients, showcasing a closer connection.
Rodríguez Gómez further explains that this proximity extends to cultural details, such as using indigenous languages when communicating with users in various regions.
“This relationship-based banking model sets Azteca apart from fintechs,” he emphasizes.
Banco Azteca’s Reach and Impact
Banco Azteca caters to 23.4 million clients, with 60% of transactions being digital. Notably, many of these customers reside in areas with limited financial services, making Azteca the sole private bank with branches in 178 municipios. The bank operates 2,000 branches across more than 800 municipios in the country.
