The banks that operate in Mexico continue to fall into the “pothole” in the path of financial development, since technological insufficiency is the “Achilles heel” of commercial banking institutions, as commented by Pablo Pereyra, who is chief revenue officer in Mexico. 2innovate.
In an interview that took place after a press conference, Pereyra said that banking “has to get rid of” providing traditional financial products as a form of business, but pointed out that this cannot be achieved with “old software.”
“It has to transform its architecture. It is as if you have a house that was designed and built in 1930, where the kitchen and bathrooms are smaller. Now, the architecture and needs are different, the same thing happens with banks,” he commented.
The expert pointed out that if the banks are not restructured “they will not be able” to face all the demand for financial services that exists every day and that is expected to increase in the medium term.
“Today’s society demands more technology than before. The Covid-19 pandemic broke paradigms and we must transform technologies,” commented Pereyra.
The expert pointed out that the deficiencies in traditional banking technology also led to fintech and Popular Financial Companies, better known as Sofipos, taking away clients from the banks.
AI, banking and cybersecurity
Also, the specialist commented that the use of Artificial Intelligence (AI) is vital for any financial institution. Pablo Pereyra gave an example and said that this can help data analysis to better understand the financial behavior of each client and thus be able to offer better financial products.
“What do customers do? How do they buy? What do they buy? AI is already used by several institutions, but not by a majority,” he lamented.
For Pereyra, the issue of cybersecurity is also an important challenge for banking and fintech, since “every day” there are more attacks and fraud attempts.
In this sense, he said that at least 80% of the frauds committed derive from errors by banking clients, as they share data or fall into traps created by cybercriminals, he mentioned that financial education is vital to reduce theft in line.
“The more digital channels there will be, the more cyberattacks. Before you left the branch and there was the theft, although it continues to happen it is in a smaller amount, but the fraud is caused by customer errors,” he assured.
According to industry data shared by Pablo Pereyra, 77% of Latin American consumers use some digital or electronic payment method. Additionally, 44% of Latin American consumers used their mobile device to make transactions in 2023.
“73% of consumers consider privacy and security as an undisputed priority in payment methods. And 90% of Millennials and Gen Z adopted electronic payment systems,” highlighted the chief revenue officer.
Financial Dashboard
The event, titled: “the future of payments in Latin America”, discussed the evolution of payment methods, the convergence of multiple payment rails and digital transformation through modular solutions.
The importance of collaboration between fintechs and traditional banks was also discussed, emphasizing how these alliances can enhance the efficiency and accessibility of financial services.
José Antonio Quesada, president of the National College of Independent Professional Business Advisors (CNCPIE), participated in the panel, as well as Luz María Villegas, Chief Operations Officer of Fintech Mexico; Edgar Torres, Commercial Leader of Financial Services and Fintech at Google Mexico.
“Fintech in Mexico has been strongly consolidated, but there is still a long way to go,” mentioned Luz María Villegas.
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