Financial Services

FinTech companies are changing banking for millennials and Gen Z.

Industries

Challenges and opportunities in financial services

Over the past two decades, financial services in Latin America have been primarily driven by microfinance, which has experienced explosive growth. What began as a small development experiment has become a multi-billion dollar industry facilitating financial inclusion for millions of individuals and businesses. Currently, the region’s 80 largest microfinance institutions are estimated to serve more than four million microenterprises, with an outstanding loan balance of approximately US$4 billion.

The recent arrival of new FinTech companies has transformed this landscape, infusing a new dynamic into a sector that has historically been resistant to innovation. Latin America now stands out as one of the fastest-growing FinTech markets globally.

Demographic conditions and a lack of advanced financial services offer ample opportunities for innovation in the sector. The financial services market in the region is estimated to be worth one trillion dollars annually, underscoring the enormous development potential and the increasing integration of technological solutions in finance.

Growth in Financial Services in 2030

50 %

A significant portion of a bank or insurer’s total revenue will be generated by services and fee structures by 2030.

25 %

It is estimated that the productivity of investment banks’ front-office will increase through the use of generative AI by 2026.

64.03 M

This will be the projected value of the global renewable energy market for 2030.

10 Strategic Challenges 2026

1

Digitization and Reduction of Physical Branches

With the increasing digitization of banking services, physical branches will become redundant as customers increasingly choose to conduct transactions and manage their accounts electronically. This trend reflects a significant transformation in the way people manage their money and access financial services.

2

Collaboration between Traditional Providers and FinTechs

A diversified ecosystem is expected to emerge, including traditional financial service providers, FinTechs, supermarkets, and public services. CFOs in 2030 will need to be able to organize partnerships that provide incremental and meaningful value to consumers, emulating models such as that of American Express.

3

Privacy and Data Protection

As partnerships between organizations evolve, there will be a greater focus on data privacy and consumer consent. Organizations will need to foster a secure environment for customer data, protecting and valuing it in a non-negotiable manner.

4

Quantum Computing and Cybersecurity

Quantum computing will revolutionize financial institutions, offering benefits such as increased revenue, reduced costs, and improved risk management. However, it will also pose significant challenges in terms of cybersecurity, as current techniques will become obsolete in the face of quantum capabilities, given that the cybercrime rate is between 10% and 39% per 100,000 inhabitants.

5

Artificial Intelligence and Insurtech

Artificial intelligence and advanced data analytics will be key to creating innovative insurance products and improving the customer experience. Insurtech will play a crucial role in the digital transformation of the insurance industry, facilitating better risk assessment and management.

6

Big Data Analysis for Business Strategies

Big data analytics will be essential for companies to anticipate market changes and design informed business strategies. Companies in the financial sector that leverage this capability will have a significant competitive advantage.

7

Blockchain and Transaction Decentralization

Blockchain technology is transforming financial transactions by eliminating the need for intermediaries. In areas such as cryptocurrencies and international payments, blockchain will offer a decentralized approach that will increase security, transparency, and efficiency in financial operations.

8

IT Integration in Financial Processes

With the rise of big data, digitization, and mobile device usage, finance professionals will need to collaborate closely with their information technology colleagues. Integrating smart IT solutions into financial processes and products will be crucial to maintaining efficiency and competitiveness.

9

Social Responsibility and Sustainability

Consumers will become increasingly socially conscious and will demand that brands in the financial services industry demonstrate social responsibility and sustainability. Financial institutions will need to adopt responsible business practices, prioritizing investments in green and social projects to remain relevant and avoid reputational risks.

10

Service Customization

Future customers will demand customized products and services that are tailored to their specific needs. Banks will need to use advanced technologies such as artificial intelligence and machine learning to offer personalized services and improve the customer experience, ensuring relevance and value in their offerings.

Our experts

José Luis Gorriti

MBA from ESAN, postgraduate degree in quality management from Osaka, Japan. Consultant specializing in strategic planning and balanced scorecards for business groups in Mexico, Peru, Brazil, Argentina, and Colombia. Former Executive and Board Member at Bayer Industrial Peru.

Jaime Alonso Gómez

Ph.D. in Administrative Sciences and Applied Economics from The Wharton School, University of Pennsylvania, USA. Consultant in Asia, the Americas, and Europe. Former Distinguished Visiting Professor at the following business schools: MIT, Harvard, California, and Austin, Texas.

Luis Cantú González

Bachelor's degree in Business Administration from CEU, Monterrey. Former Executive Director, Director of Administration and Finance, and Director of Control and Information Technologies at Grupo Protexa.

Eduardo Flores Montes

Industrial Engineer with a postgraduate degree in Operations Management from the University of Cologne, Germany. Former General Manager of Sudamericana de Fibras in Brazil; General Manager of Bayer Industrial in Peru; General Manager of Metalúrgica Peruana.

Victor Carrera Torres

M.Sc. in International Business from Georgia State University. M.Sc. in Industrial Engineering from the Georgia Institute of Technology. Former executive at Coca-Cola, USA.

Héctor Díaz Saénz

Specialist in Leadership and Organizational Culture, accredited by Human Synergistics International. Performance Coach for Entrepreneurs. Ph.D. in Organizational Communication (with a specialization in Leadership and Organizational Culture), from the University of Texas at Austin.

Boris Dimitrijevic

Marketing consultant specializing in various business groups in Latin America. Former Marketing Manager at Coca-Cola Peru. Ph.D. in International Business and Marketing from the Polytechnic University of Catalonia.

Roberto Martínez Elizondo

Former executive in Organizational Development and Human Resources at companies such as Grupo Protexa, Aceromex, and Grupo Multimedios, among others. Holds a Bachelor's degree in Psychology, a Master's degree in Organizational Development, and a specialization in Family Business Management from the University of Monterrey (UDEM).

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