IT MAY INTEREST YOU: Banks anticipate year with good results; bet on digital strategy
According to data from the National Banking and Securities Commission (CNBV)it is a growth of 14.4% in annual figures, at a time when the main financial institutions of the country have reinforced investments and business strategies for the growth of their digital arms.
If compared with the behavior of the use of digital banking before the Covid-19 pandemic, The growth is 86% in the number of users, since at the end of 2019 there were only 39 million 49 thousand contracts.
At the end of 2022, the main banking players operating in Mexico reported a shot in the use of their digital banking.
BBVA Mexico reached 18.9 million mobile customers, a growth of 26% compared to the previous year which translates into more than 1.8 billion operations per year for the largest financial group operating in the country.
In the case of Santanderat the end of 2022, reported a total of 5.7 million mobile customers, a growth of 10% compared to 2021.
“We are very proud of our sustained improvements in core digital metrics with product sales through digital channels accounting for 62% of total sales, a significant increase compared to 56% a year ago,” the CEO said on a conference call with analysts. Santander Vice President of Administration and Finance, Didier Mena.
“Digital monetized transactions also maintain an upward trend, reaching 49% of our total, with mobile transactions accounting for 98% of total digital transactions.”
Bank apps have been gaining ground in the face of the digitization of the economy.
According to FICO, a predictive analytics firm, virtually six out of 10 users in Mexico analyze opening a digital financial account, mainly if the process and verification of identity and other credentials last less than 30 minutes; otherwise, they will desist from making the request.
“Changing customer needs, the improvement of digital capabilities, as well as the entry of new competitors are accelerating the pace at which banks must innovate,” said KPMG’s lead financial services partner in Mexico, Carlos Fernández.
“To achieve this, digital transformation and technological investment are determining factors. This dependence on technology and data to grow, however, makes banks more vulnerable to challenges such as having the right talent to successfully carry out their digital transformation,” he added.
Despite the digital advance, more bank branches continue to open.
more branches
In physical infrastructure, the operation of the 50 banks in the country also showed growth at the end of 2022.
The CNBV data show the opening of 306 new bank branches compared to 2021, to reach 11,831 contact points, an advance of 2.6%.
Meanwhile, banks also hired more staff and closed 2022 with 233,508 employees, 0.74% more than at the end of 2021.
At the same time, the presence of banking correspondents grew, so that, as a whole, at the end of 2022 there were more than 62,000 service points where banking operations can be carried out physically in Mexico, a growth of 5% in annual terms. .
The growth of physical infrastructure in the Mexican market follows the trend of financial services in Latin America, with a gradual reduction in offices marked by changes in user habits and a strong digital transformation.
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According to the Latin American Federation of Banks (Felaban), 2021 consolidated the downward trend in the number of bank branches initially observed since 2019 in the region. Thus, the regional bank reported 57 thousand 840 bank branches last year, showing, for the second consecutive year, a decrease in it.
“This figure is consistent with the changes in financial consumer preferences in the last year, who have chosen to migrate their transactions to digital channels, to the detriment of face-to-face ones.”, said the body.
“Given that these preferences have been maintained, Felaban anticipates that this negative trend could be reinforced in the coming years.”
