It’s no secret that the banking industry is in the midst of a digital transformation. Banks and financial institutions are turning to digital channels to reach new customers, promote their products and services, and improve their overall operations. The result is a more convenient, efficient, and user-friendly consumer banking experience.
This trend is particularly evident in Mexico, where internet users have grown significantly in recent years. According to research, there are over 96 million internet users in Mexico as of January 2022. With more Mexicans going online, it’s no surprise that digital banking is on the rise in the country. Mexico is also a country in transition.
In the last few years, we have seen a growing middle class, an increase in access to technology, and a more open economy. These factors are all coming together to create a perfect storm for the digital banking industry. Here are the 9 top digital banking trends we predict will take off in Mexico in the next few years.
Mobile Banking
Mobile banking is one of the most convenient ways to manage your finances on the go, and about 94% of Mexican consumers use mobile banking apps. Mobile banking is super convenient, given that they can check account balances, transfer funds, pay bills, and more. Mexican banks are expected to invest heavily in mobile banking in the coming years to offer their customers the best possible experience.
Online Banking
Online banking refers to the ability to access your bank account and conduct transactions via the internet. This includes tasks such as checking your account balance, transferring funds, paying bills, and more.
Mexican banks have been offering online banking services for years, but they are constantly evolving to meet the needs of their customers. For example, Banorte’s online banking platform allows customers to open new accounts and apply for loans online.
Biometric Authentication
Biometric authentication is a security measure that uses physical characteristics (such as fingerprints or iris scans) to verify someone’s identity. This technology is already being used by some banks in Mexico, such as BBVA Bancomer and Santander México. It’s expected to become more widespread in the coming years as banks look for ways to improve security and prevent fraud.
Contactless Payments
Contactless payments allow you to make payments without having to physically handle cash or cards. This is convenient for both customers and businesses alike. In Mexico, contactless payments are expected to become more popular as people look for ways to minimize physical contact after the coronavirus pandemic.
Blockchain
Blockchain is a digital ledger that can be used to record transactions securely and transparently. This technology has many potential applications in the banking industry,’ including streamlining back-office processes, reducing fraud risk,’ and improving customer service. Blockchain could expedite international transfers, reduce human errors, make lending easier for banks and customers, and potentially eliminate commissions and middlemen.
Cryptocurrency
Cryptocurrency is a type of digital currency that uses cryptography for security purposes. Bitcoin, one of the most well-known cryptocurrencies, has seen tremendous growth in recent years. With a staggering 3.1 million Mexicans owning cryptocurrencies, Mexican banks are expected to start offering cryptocurrency services in the coming years. This is not limited to just banks, as about 40% of Mexican countries are looking to adopt both blockchain and cryptocurrencies.
Artificial Intelligence (AI)
AI can be used for tasks such as detecting fraudulent activity, analyzing customer data, and providing personalized recommendations. Some banks are already using AI in Mexico, such as BBVA Bancomer, which uses AI-powered chatbots to provide customer service. AI chatbots have become a game changer, and not just in Mexico. Banks can utilize chatbots for lead generation, automate customer support, send reminders and notifications, assist customers with financial advice, and account monitoring.
Cloud Computing
Cloud computing enables businesses to access data and applications over the internet instead of storing them locally on devices. This allows banks to scale their operations quickly and efficiently. In Mexico, cloud computing is expected to grow significantly in popularity among banks over the next few years. This will also go hand in hand with Big Data, as more and more banks are using data to analyze consumer patterns and insights.
Digital Banking in Mexico: Trends to Watch Out For
The digital transformation of the banking industry is well underway, and Mexico is at the forefront of this trend. With more Mexicans going online every year, banks are turning to digital channels to reach new customers and improve their overall operations. From online and mobile banking to blockchain technology, many exciting developments are taking place in the Mexican digital banking space.
