Cómo los bancos en México pueden usar la PFM avanzada para aumentar su participación de mercado

Dror Gross, Sales Manager, Mexico

“Customer financial data is probably the most valuable asset for banks, but turning it into practical , actionable advice is what really drives advantage.” That’s how the Personetics team began their recent presentation at the Revolution Banking and Retail event in Mexico. The challenge of turning transactional data into relevant business outcomes for the Mexican financial sector while simultaneously driving customer engagement by improving their financial well-being is what I do every day at Personetics. 

The challenges and opportunities facing the Mexican banking sector 

The challenges

• Banked, unbanked and partially banked 

The Mexican banking sector faces a number of unique challenges. Mexico is Latin America’s second-largest economy and the second-largest e – commerce market by gross merchandise value, reflecting the country’s high level of digitalization. At the same time, Mexico remains a heavily cash-based economy, with nearly 40% of merchants not offering any credit card or digital payment options. According to the World Bank, nearly 50% of Mexico’s adult population is unbanked 1 . Of the banked population, 22% do not have a mobile banking account, and of those, more than half have multiple bank accounts 2 . Furthermore, much of the banked population is not fully banked. For example, they may have a digital wallet but not a debit account, making the lack of a primary bank an issue.  

• Neobanks 

Neobanks have their sights set on Mexico and are investing a lot of resources in trying to increase their market share. Since neobanks are, by definition, based on modern, fully digital systems, they can easily introduce advanced capabilities and leverage customer data. Traditional banks must find a way to compete with neobanks on equal terms, otherwise they risk losing market share to them.  

• How to interact with transactional data 

Many traditional banks and financial institutions in Mexico are beginning to enrich and categorize transactional data. However, most banks try to do this internally or use basic techniques and static databases to do so. Both of these approaches offer results that have limited or no value for both the bank and the customer. 

 

 

The opportunities 

Transactional data, the asset hidden in plain sight 

As Mexico moves toward a more digital economy, banks will begin to play a more critical role for millions of new and existing customers. Customers need to see their banks as trusted financial partners, fully committed to developing customers’ financial well-being and delivering an excellent, personalized customer experience.  

By leveraging advanced PFM and digital engagement solutions that are based on each customer’s transactional data, banks will be able to offer the type of specialized service and solutions that customers increasingly demand, allowing them to stand out from the competition. Based on our proven global experience, we know that Personetics partners can achieve customer engagement rates of up to 35%, sales conversion rates of up to 17%, and 9% year-over-year growth in digital deposits. 

By implementing these advanced solutions, traditional banks will be able to compete with the growing popularity of neobanks and other fintech offerings, increase their business impact, and create new revenue streams through much higher sales conversions. 

Personal financial management, the key to understanding your client 

Personetics gives banks the ability to understand what their customers want, why they want it, and when they want it. Recognized as a global leader in personal financial engagement (PFE) and proactive customer engagement by Celent, the technology-focused research and advisory firm for financial institutions, Personetics is committed to enabling banks to develop stronger relationships with their customers, while increasing their own business impact. By offering valuable insights into customers’ financial behavior, Personetics’ advanced solutions deliver personalized, proactive, and actionable financial advice and insights in real-time. All of this provides customers with the information they need to make smarter, timelier decisions to achieve their financial goals, optimize budget management, and promote their overall financial well-being. 

For example, based on transactional data, banks know when their customers will finish paying off their bank loans, and can proactively advise them on different savings or investment options for that “extra” cash. This not only reminds the customer that the loan is coming due, but also allows them to take additional steps to achieve their overall financial goals.  

Another example of personalized actionable insights offered by Personetics is savings plans. Using financial data, banks can give their customers hyper- personalized actionable insights and offer them easy ways to track their savings goals. This promotes the overall financial well-being of customers and allows them to focus more on achieving their financial goals. 

Summary 

There are huge opportunities in the Mexican banking sector for those banks that are ready to take advantage of them. Banks that have the confidence to invest in advanced PFM solutions and maximize their customers’ value through data-driven personalization, build stronger relationships with their customers by increasing their engagement, and drive their own business impact with tangible growth strategies will be the ones that stand out from the competition, expand their market share, and come out on top. 

If you would like to learn more about our solutions and how you can use them to take advantage of the enormous opportunities in Mexico, please contact us. 

 

Dror Gross

Commercial Director Latin America

Dror Gross has over 6 years of experience in sales and technology consulting within the financial services industry in Latin America. Prior to joining Personetics, Dror led sales for several fintechs in the region, where he successfully guided banks in meeting business and risk management KPIs by tailoring software solutions to their specific needs. For the past 2 years, Dror has led Personetics sales in Latin America.