Latin American banking consumers seek financial stability and quality in digital experiences

Boston Consulting Group (BCG) presents an exhaustive study on the behavior and needs of banking consumers in Latin America. In the report “Digital experience and trust: key factors to capture customers in Latin American banking”, the clients’ focus on financial stability and the use of digital tools stands out. To carry out this study, more than 8,000 consumers in the region were surveyed, and the critical factors that influence people when choosing a bank were analyzed. Trust, technology and personalization are critical aspects in your relationship with banks.

The BCG study highlights that, at a regional level, the pandemic and inflation have driven a shift towards more cautious financial behaviors in Latin America. Confidence in the economic situation varies between countries, with Peruvians being the most optimistic, followed by Colombians and, finally, Chileans.

Overall, Latin American consumers express a growing need for economic security, prioritizing savings and debt reduction over consumption. This phenomenon is observed in both young people and older adults. However, it is the latter who are most likely to adopt more conservative financial strategies to protect their stability.

“Latin Americans are looking for convenience, but above all they want stability, transparency and personalization in their banking experience. This creates a huge opportunity for banks to try to differentiate themselves by creating trusted digital experiences and building relationships that add value. In this sense, taking advantage of artificial intelligence (AI) and GenAI to offer personalized experiences that satisfy both the functional and emotional needs of customers is a great opportunity,” says Alfonso Astudillo, managing director & partner of BCG and author of the report.

Likewise, digitalization is emerging as an essential demand, with more than 80% of consumers using mobile applications to manage their finances, making the digital experience a key differentiator in the sector. The report highlights that while digital channels, especially apps, have become the main means of interaction with banks, traditional channels such as ATMs and physical branches still play an important role, especially for consumers. older. The use of ATMs continues to be significant, with 68% in Peru, 65% in Colombia and 64% in Chile.

“Trust continues to be the central axis in banking relationships in Latin America. This study shows that banks must offer first-class digital experiences, without neglecting the closeness and security that in-person interactions provide. The key is to adapt to the different profiles and needs of your clients,” commented Astudillo.

The youngest consumers

The study identifies age as a key differentiating factor in the needs of consumers in the Latin American banking sector. Younger consumers (under 45) prioritize the convenience, speed and efficiency that digital solutions offer. They are more likely to use mobile apps and online banking platforms to manage their finances, looking for institutions that offer seamless and frictionless digital experiences.

These consumers prioritize attributes such as easy online access, robust digital platforms and transparent processes. But it is important to consider that, although they increasingly use digital channels, the bank’s reputation and the availability of in-person services remain crucial for them.

Older consumers value trust, security, and personalized service more and seek out institutions that provide peace of mind, security, and personal connection through human interaction.

Currently, financial institutions mainly focus on the functional aspects of their services, such as digital access, robust platforms and efficiency in service delivery. This meets the needs of younger consumers, but leaves an important gap in addressing the emotional needs of older customers.

Key Findings for the Region

The study’s conclusions suggest that banking in Latin America must evolve towards hybrid models that combine advanced technology with the trust provided by personal interactions.

Interestingly, history with the bank seems to have a minor impact on the choice of primary bank. Only 27% of respondents prioritize the bank they have been with the longest.

Consumers are looking for financial services that integrate digital convenience with the support and security of traditional channels. According to the BCG study, banks that manage to respond to both functional needs (such as intuitive digital platforms) and emotional needs (with reliable and transparent service) will be better positioned to gain long-term customer loyalty.

• Focus on Security and Savings: In response to economic uncertainty and inflation, consumers are prioritizing savings and debt reduction. The majority of respondents plan to reduce expenses in the coming year, consolidating a trend towards financial caution.
• Frictionless Digital Experience: Consumers, especially younger ones, demand a seamless and secure digital experience. Mobile applications and intuitive interfaces have become essential, pushing banks to invest in robust digital platforms.
• Trust as a Fundamental Pillar: Although the use of digital channels continues to grow, trust remains fundamental in the bank-customer relationship. Consumers value transparency and security, looking for banking that offers reliable and personalized interactions.
• Preference for Hybrid Models and Customization: While young people prefer digital solutions, older consumers value in-person service. This is driving banks to adopt hybrid strategies that combine digital convenience with human attention.