Latinos do not trust digital banking

Most of the banks offer digital alternatives to customers, but they prefer traditional channels.

In Latin America, a large part of the population still prefers to use traditional channels to carry out their financial procedures than to test digital channels, according to data from the study “Digital financial services in Latin America,” conducted by the National Association of Financial Institutions (ANIF). ) in 2018.

Users of financial products prefer 58% of the cases to go to the physical branches of banks, while 45% use ATMs frequently. These figures are still above the 42% that make online transactions, although the gap is shortened. Only 25% take advantage of mobile banking applications, and 19% use banking by telephone, according to ANIF figures.

This penetration is in early stage despite the increasing availability of digital banking. Juan Carlos Arcila, president of the Latin American Congress of Digital Banking, Innovation and Technology, points out that nowadays it is difficult to find a bank that does not have a website to carry out transactions or that explores the possibilities of Mobile Banking.

The weak adoption by users is mainly due to a lack of confidence in these channels.

“People still have some degree of mistrust of the applications for security issues, so we must continue in the task of education of those people with products that generate confidence,” says María Jimena Durán, director of the vice-presidency of Banking of Companies of the Bank of Bogotá.

The challenges facing the banking sector for its expansion and the opportunities generated by emerging technologies such as the blockchain will be discussed in Santo Domingo, Dominican Republic at the III Latin American Congress on Digital Banking, Innovation, and Technology.

Digital bank trends in a Latam Congress

This event will be held on July 11 and 12 at the Hotel Intercontinental Real Santo Domingo, where there will be expert speakers on topics such as data analysis and big data, process automation, blockchain, APIs or cybersecurity.

“There are many variables that financial institutions must take into account to offer their services today and therefore this congress is an excellent opportunity to learn about the latest trends in this sector and exchange experiences with various actors who are developing ideas and projects in the provision of financial services “comments Arcila.

The president of the Congress also stressed that “new technologies allow banks to migrate to an increasingly digital world, change the way they provide financial services and meet the needs of consumers differently. Also, it will enable generating efficiencies in internal processes and improving response times. “

In the event, more than 20 countries of the region will participate. Among the speakers, highlights Nicola Berttazoni, Senior Product Strategist of Somo Globa, accelerators of digital products in the United Kingdom. Digital banking leaders in Latin America will also be present there.