As times go by, the banking sector is evolving to adapt to the contemporary customer’s purchasing behavior. Choosing the learning path gives banks the innovative mentality required for standing out.

Scaling the structure that sustains innovation is the banking sector’s mission. It requires developing new structures, testing and repeating, while keeping a customer-centric focus.

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A customer-centered revolution

75% of customers expect a consistent experience across every channel they choose to engage (Salesforce). With the rise of fintechs that offer innovative, highly personalized solutions for customers, the traditional banks are racing to develop top of the line solutions to retain customers and reach new markets.

The core of the banking sector’s evolution is customer experience. The highly personalized experience was the fruit of customer centric iterations throughout the development process of the solutions.

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The evolution of purchase habits

Ordering anything through the phone in a matter of seconds has become the most frequent reality for a significant percentage of buyers. The global online shopping market size nearly hit 4 trillion in 2020 (Business Insider).

The shift in customers shopping habits was increased with pandemics. As 42% of millennials complete online shopping transactions on their smartphones (Statista), financial services providers had to be ready for the boom in the demand for the online services.

In the post pandemic scenery, the online shopping trend is expected to stay indefinitely. E-Commerce Sales Are Predicted to Hit $6.5 Trillion by 2023 (Statista), which states a fertile ground for online payments and online banking services.

Read also: Retail evolution through Digital Acceleration

Embracing technology as an ally

In order to build a consistent structure to deliver digital solutions customers want, technology has a fundamental role. The banking sector is using some strategies to keep up with fintechs, using their experience and strong brands to personalize customers’ services and deliver a great user experience.

Check out some of the strategies used by big players of the Latin American finance sector:

Innovation Labs

The Banco de Crédito del Perú (BCP) came up with a “figital” innovation strategy: they’ve splitted the structure into two; a Lab Agency and a Laboratory. The concept comes from their need of testing new approaches in the Lab Agency in order to improve customer’s satisfaction (Gestión).

BCP is challenging the norm of traditional banking by co creating a new kind of agency. Aiming to create the best hybrid experience for the customers. Dosing digital and physical channels, BCP is testing new solutions into their Laboratory, which stays in the building next to their experimental Agency Lab (Newsbizzer).

Strategic partnerships

To offer the best products to the clients, Banco Popular has invested in innovation and in approaching fintechs and strategic partnerships.

The bank has made a partnership with the Fintech IMPESA Costa Rica and VISA, creating Monibyte, an app that allows customers to self-manage their accounts without the need of going to the bank (Periódico Mensaje).

The result of the modernization was a profit increase of 113,4% and a customer portfolio increase of 7,9% in 2018 (La Republica).

Developing startups

Created in 2015 by Itaú, in partnership with the venture capital manager Redpoint, Cubo has a network of 475 startups.

The revenue of startups housed by Cubo, Itaú Unibanco‘s innovation hub, reached BRL 4.4 billion in 2020, a growth by 1.552% over the previous year, as the effects of the COVID-19 pandemic boosted demand for digital solutions.

According to Cubo’s co-president, Pedro Rodrigues, health service startups, especially those with telemedicine solutions, stood out. Retail-oriented startups – such as e-commerce, logistics and mobility, and finance – also had record revenues. (Labs News).

Talents to foster the digital transformation

The banking sector becomes more customer-centered everyday, in order to offer the best products and services to the public. This trend leads to the need of a digital transformation in traditional banks’ structures, expertise and business focus.

This means there is a great demand for the perfect professionals to be part of the transformation. Talents with an innovative mindset, IT, Design and Digital skills and good communication in English are the favourites of great banking agencies.

If you see yourself working at a vibrant innovation Lab, or has the desire to help people have the nicest experience using the bank through their phones, how about checking out our opportunities? Just click here to know which vacancies are trending at The Bridge.

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