Study of Technisys and the GMix Program at Stanford University concerning the condition of Digital Banking and the Omnichannel in Latin America

Press Release : July 13, 2015

• Only 28 % of banks think they are ready to meet the requirements of their digital clients.
• 61 % of banks state that they are actively investing in order to achieve the appropriate level of functionality.
• Only 33 % of banks confirmed that their clients have freedom to choose between different channels.

Miami, June 2015 – Technisys announced the joint study done in Latin America with GMixProrgamof Stanford University, specifically in Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Honduras, Mexico, Peru and Uruguay. The sample included both international and domestic banks, both public and private, with a range in assets from 800 million to around US$ 400 billion.

In Latin America, 80% of banks still consider their branches as one of the most important channels for interaction with customers, due to the number of transactions that take place there. However, between 67% and 80% of banks identify automatic teller machines (ATMs) and Internet Banking as a priority. Only 20% of banks ranked mobile devices as one of the main channels of attention, although mobile apps were recognized as likely the most important channel in the future.

75% of banks said they follow a statistical trend to increase client services through channels of Internet Banking, Mobile Banking and ATMs.

Only 17% of banks confirmed their ability to offer clients complete flexibility to choose the channel of their preference for any kind of transaction. 83% of banks still rely on offices and branches to complete complex banking transactions.

41% of banks confirmed widespread marketing of their digital channel features, another 41% said that they advertise it through promotional activities, while 18% indicated that they do not pursue online marketing initiatives for their digital features.

36% of banks admitted that they had faced challenges in swaying their clients to adopt digital channels. 47% mention that one of the challenges is the lack of widespread Internet connection or mobile broadband connectivity. Another 47% mentioned the lack of knowledge of types of digital channels with which to carry out transactions.

It is interesting that 90% of the banks have pointed out that the reason why they pursued digital capability is to continue to be competitive and to attract young clients (millennials).

As far as new technologies go, 73% of banks confirmed that they were not testing any new or game-changing technologies like Smart TV or wearables. These banks’ focus is to increase and to improve their already existing digital channels. Nevertheless, 27% confirmed that they were testing new technologies.

In forecasting for the next five years, 72% of banks believe that their clients will not be required to personally go to branches, and 78% estimate that there will be a clear demand for omnichannel services.

Regarding threats and fears, 71% of banks reported that to not adapt quickly to the advances of technology and to not satisfy the needs of the millennial generation (35%) were the main threats to business.

In a nearly universal consensus, 89% of banks interviewed stated that an omnichannel strategy implies a unified and consistent user experience, which allows the bank to maintain a process of active business at all times, through any channel.