The banking industry started the process of digital transformation with the massive advent of internet and information technologies that changed the way people interacted with banking.
Nowadays, every banking company has its corporate website and its own mobile application, from which you can perform all the operations that you previously had to visit a physical branch.
Thus, digitization of the banking sector creates a double effect. On the one hand, the slow and inexorable disappearance of the use of money and banking institutions as we have known them, on the other hand, the emergence of new purely digital fintech.
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With Neobanks
Called Neobanks, a model without any physical presence and its operation and business is managed 100% digitally through web and mobile app.
In this way, its value proposition compared to traditional banking is mainly trying to transfer savings from not operating in physical offices to product portfolios and general conditions.
And for a more immediate and, above all, better user experience. NuBank, BNext, Revolut, Wise, Neon are some examples.
Latin America
Currently, NeoBanks is leading the adoption of customer-centric digital approaches, with a 79% growth expected in the global penetration of users who have contracted financial services with NeoBank, from 188 million in 2022 to 338 million in 2025. Payment.
Neo Banks’ business strategies include serving more advanced users, SMEs and demographic segments underserved by traditional banking, who seek digitization and immediacy and a more agile, faster and simpler experience.
In Colombia, financial inclusion continues to increase, while in 2022, the country scored 44.7 out of 100, and in 2023 it reached 45.6- or individuals with an unfavorable credit history.
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Mobile is important
In this respect, mobile technology plays a decisive role in the banking digitization process. With the appearance of the first applications, the mobile phone became the new channel for accessing personal banking.
Its ability to be instant and ubiquitous is then combined with biometric authentication and the ability to be authenticated in seconds, greatly improving the user experience of customers, always, of course, complying with strict security levels.
It should be taken into account that the strong penetration of mobile phones in all countries in the region, the degree of digitization and the massive use of smartphones are increasing in all strata of society, and the exponential increase in mobile payments is making the mobile phone. Even physical branches are the preferred channel for users to access their financial services over other channels such as internet or telephone banking.
Distinguishing benefit
Ivan Montenegro, Country Manager Mobile amount“In a region like Colombia where the number of prepaid mobile phone lines reaches 63.5 million, always-on capacity represents a clear differentiating advantage.”
He explained, “On the one hand, this allows us to improve the user experience of the end customer and to improve the experience of customers who feel safe because they can always access their banking application, and on the other hand, we can make the customer profitable by guaranteeing that they can always use financial services, which is the ultimate objective of Neobank.”
Being an operator, branding can be amplified with a SIM card, which can be designed and customized with graphic codes and the brand image of the bank or the name of the Fintech that provides the mobile service that always appears on the screen on the same cell phone, as well as in all transactions.
“In addition to being a new revenue stream, mobile phones undoubtedly become a promotional and loyalty tool, and allow Fintech to launch cross-promotions to reinforce the launch of a new product or encourage the use of certain services”.
