The Future of Mobile Banking in Latin America
Insights from Argentina, Brazil, and Mexico
Reprinted with permission from Deloitte.
Mobile technology offers an unprecedented growth opportunity for retail banking in Latin America. As these economies continue to prosper, increasingly affluent consumers and underbanked1 segments may create demand for new financial products and services. Many consumers in Latin America have mobile phones, but not bank accounts. The mobile channel therefore provides an effective way to attract them into the financial services marketplace.
These favorable attributes represent new opportunities for banks operating in Latin America. According to Deloitte Center for Financial Services2 analysis, within the next several years mobile banking will be more of a necessity than a choice and it will likely become an integral component of a bank’s business strategy. Realizing this, many banks in the region already have developed basic capabilities. Institutions behind the curve may wish to act soon or risk being left behind, and even market leaders may benefit from re-examining their strategies to fully integrate mobile banking into their operations. Those who accelerate their plans and develop innovative strategies could shape the mobile landscape to their advantage.
This paper addresses the current climate, future prospects, and possible challenges to the growth of mobile banking in the region, focusing on Argentina, Brazil, and Mexico. Though the final form may vary locally, we expect a rapid transformation in mobile banking and payments in Latin America throughout the next several years.
1 In this document, the term “underbanked” refers both to those with limited access to financial services and those with no access at all.
2 As used in this document, “Deloitte” means Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.