Only 38% of Latin American banks invest in artificial intelligence

While 51% of Latin American banks consider it essential to expand their digital channels and 61% say that the quality of the mobile experience is key to better customer interaction, only 37% and 38% are seriously investing in cybersecurity and artificial intelligence.

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The figures are part of the fourth ‘Latin American Digital Banking Study’ conducted by Infocorp, among 83 executives with high decision-making power representing 44 banks from 16 Latin American countries, including Colombia.

Research conducted by this omnichannel banking solutions provider in Latin American markets, which is owned by the Canadian technology conglomerate Constellation Software, mentions that while in 2022 the main objective of banking institutions was to improve the user experience, in 2023 they focused on these organizations transforming into 100% digital banks, which implied invest in more channels and expand their digital capabilities.

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The results highlight, for example, that 31% of banks continue to renew their digital channels to improve the user experience, making it more modern, functional and intuitive.

According to the study on banking in the region, 22% are trying to transform into a 100% digital bank, and 18% are looking to expand the functionalities of current digital banking.

On the other hand, 12% focus on increasing sales of digital products (account opening and digital onboarding).

7% of banks are seeking to reduce operating costs, 6% are seeking to find new business models through open banking, and only 4% do not yet have digital channels or digital sales of any of their financial products.

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Infocorp says that unlike the previous year (2022), the 29% of those surveyed said that the biggest obstacle within financial organizations to achieve innovation is not having adequate technological infrastructureovercoming the internal culture obstacle that was imposed in 2022.

Other significant impediments that emerged from the report include lack of budget, at 21%, and development time, at 18%.

The survey also found that only 23% of banks have an innovation department, while the trend of previous years continues, where entities opted to hire a mixed IT provider that works together with the bank’s internal development area, with this percentage being 64%.

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He 51% of banks expanded their digital channels in 2023 to improve user interaction and investments in cybersecurity and the implementation of artificial intelligence was done by 37% and 38%, respectively.

The three main areas where banks are using artificial intelligence are customer service –chatbots or virtual assistants–, optimization of internal processes, as well as risk and credit management.

Microsoft Chatbot

PHOTO: iStock

Infocorp report says it has changed the growing trend of investment in information technologiessince the latest study showed that 65% of banks had increased their investment in the last year and in 2023 only 51% decided to increase it, 39% maintained the same investment and 10% decided to decrease it.

“In four years, banks had to transform technologically, no longer by choice, but by obligation, otherwise they would be left out of the market.“, said Ana Inés Echavarren, CEO of Infocorp.
And he added that “We have detected the increase in open banking in both retail and corporate banking. This technology allows us to offer customers more personalized products, services and experiences.“.

Holman Rodriguez Martinez
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