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Customers' Unmet Needs and Pains

Banking in Chile Current Pains Analysis

The Chilean banking ecosystem is simultaneously sophisticated and concentrated, offering a wide portfolio of products while struggling with structural, technological, and regulatory frictions that generate persistent pains for customers. A synthesis of the four analytical blocks (Customer Identification, Customer Challenges & Pains, Social-Listening, and Current Demand Behavior) reveals five overarching pain clusters experienced across B2C and B2B segments:

  1. Limited Access to Banking Services & Credit
    • Underserved individuals (lower-income, migrants) and SMEs still find it difficult to open accounts, build credit histories, or obtain affordable financing.
    • Traditional collateral-heavy credit assessment models, scant alternative-data use, and the dominance of a few large banks perpetuate exclusion.

  2. High Total Cost & Scarce Tailored Options
    • Market concentration (four large banks hold >70 % of assets) weakens competitive pricing pressure.
    • SMEs and retail borrowers report less favorable loan rates and higher fees versus peer markets.

  3. Sub-Optimal Digital Experience & Service Delays
    • Banks’ legacy core systems slow down deployment of frictionless digital journeys (on-boarding, real-time approvals, omni-channel service).
    • Customer frustrations manifest in lower Net Promoter Scores and rising churn to agile fintech platforms.

  4. Heightened Cyber-Security & Fraud Exposure
    • Card-not-present fraud, phishing, and identity theft grew double-digit in 2024 (industry estimates).
    • Imminent Open Finance rollout increases data-sharing risks, amplifying customers’ call for robust, transparent security guarantees.

  5. Product Complexity & Financial Literacy Gaps
    • The vast catalogue of universal banks confuses retail clients; SMEs lack guidance on sophisticated treasury or FX products.
    • Limited financial education programs erode trust and inhibit proactive product uptake.

Unmet Needs and Pains

Below is a detailed articulation of the unmet needs underlying the pains above, mapped to affected segments and latent opportunities for industry stakeholders:

# Unmet Need Pain Manifestation Affected Segments Why It Remains Unmet Opportunity Space
1 Inclusive, low-threshold onboarding & micro-credit • Difficulty opening basic accounts
• Rejection of micro-loans despite positive informal repayment history		 • Lower-income citizens
• Migrants
• Informal micro-entrepreneurs		 Conventional KYC/credit models ignore alternative data; limited branch presence in rural/low-income areas Digital-ID/KYC, alternative-data scoring, agent banking, partnership with gov’t social programs
2 Affordable SME working-capital solutions • High collateral requirements
• Expensive credit lines
• Long approval times		 • Small & Medium-sized Enterprises Concentrated banking sector, risk-averse credit policies, shallow capital markets Fintech-enabled invoice-discounting, supply-chain finance, public risk-sharing funds
3 Seamless omni-channel experience • Fragmented digital/branch journeys
• Re-authentication requests
• Slow dispute resolution		 • Retail mass market
• HNWIs
• SMEs using online portals		 Legacy core systems, siloed data, under-investment in CX design Core modernization, API-driven architecture, AI chatbots, unified CRM
4 Transparent, user-centric cyber-security • Rising card fraud
• Fear of data misuse in Open Finance
• Low customer visibility into protection/resolution processes		 • All digital users Rapidly evolving threat landscape vs. slower controls deployment; limited customer education Real-time fraud alerts, biometric MFA, cyber-insurance add-ons, educational campaigns
5 Simplified product menus & financial education • Low uptake of investment/insurance add-ons
• Confusion over fee structures		 • Mass retail
• SMEs new to sophisticated banking		 Complex regulatory disclosures, jargon-heavy communications Plain-language product sheets, interactive simulators, bundled advisory
6 Competitive pricing & fee transparency • Perceived “expensive” banking vs. regional peers
• Hidden charges		 • Retail & SMEs Oligopolistic market dynamics, legacy cost base Value-based pricing, subscription models, open-comparison platforms
7 ESG-linked and socially responsible products • Growing customer demand but limited supply of green loans or impact funds • Millennials, Gen-Z, sustainability-oriented corporates Product development still nascent; unclear taxonomy Green mortgages, SME eco-upgrade loans, sustainability-linked deposits
8 Rapid, data-driven public-sector payment solutions • Slower disbursement of subsidies/payroll compared to fintech wallets • Government entities & beneficiaries Outdated interfaces between banks and public systems API integration, instant payment rails, CBDC pilots

Narrative Insights

• Financial Inclusion remains the single most acute gap: 1.7 million adults (≈ 13 % of the adult population) are still unbanked, with migrants over-represented (source: Centro Nacional de Estudios Migratorios, 2023).
• SMEs cite access to affordable credit as the top obstacle to growth; average SME loan spreads are ~250 bps above corporate benchmarks (Balance Económico 2024, UAI).
• Digital adoption surged (mobile transactions +28 % YoY), yet 46 % of users report dissatisfaction with incident resolution times (Latinia, 2024).
• Fraud losses climbed 18 % in 2024; only 42 % of customers feel “very confident” about their bank’s digital security (La Tercera, 2024).
• Younger cohorts and corporates are beginning to demand sustainability-linked products, but supply is fragmented and mostly pilot-scale.

Key Findings

Key Finding Evidence Strategic Implication
1. Inclusion Gap Persists 1.7 M unbanked; migrants disproportionately excluded (CNE Migraciones) Design alternative-data credit scoring and low-KYC onboarding
2. SME Credit Friction SME loan spreads +250 bps; long approvals (UAI 2024) Deploy fintech partnerships for faster, collateral-light products
3. Digital CX Lag 46 % dissatisfaction with service resolution (Latinia) Modernize core & adopt omni-channel CX frameworks
4. Rising Cyber Threats Fraud losses +18 % YoY; low customer confidence (La Tercera) Invest in real-time fraud analytics, MFA, customer education
5. Price/Transparency Concerns High perceived fees in concentrated market (multiple sources) Introduce transparent fee structures, subscription or freemium models
6. Growing ESG Demand Early uptick in green product interest (Dock 2024) Develop standardized taxonomy & scalable ESG financial products

References

• ¿Qué servicios ofrecen los Bancos? – CMF Educa – Comisión para el Mercado Financiero. https://cmfeduca.cmfchile.cl/infografia/que-servicios-ofrecen-los-bancos
• Acceso a productos y servicios bancarios – Centro Nacional de Estudios Migratorios. https://migraciones.utalca.cl/wp-content/uploads/2023/11/Acceso-productos-servicios-financieros-poblacion-migrante-refugiada-Chile.pdf
• Segmentación de Clientes en Banca: Creando Estrategias de Impacto – Latinia. https://latinia.com/segmentacion-de-clientes-en-banca/
• Los desafíos clave para la banca en 2024: fraudes con tarjetas y Ley Fintech – La Tercera. https://www.latercera.com/pulso/noticia/los-desafios-clave-para-la-banca-en-2024-fraudes-con-tarjetas-y-ley-fintech/Y4C33D3GXVGHLAU6B67SWH4GVU/
• Balance económico 2024 y desafíos para 2025 – Escuela de Administración y Negocios, UAI. https://administracionynegocios.uai.cl/noticias/balance-economico-2024-y-desafios-para-2025/
• Ley Fintech in Chile: A promising scenario for the industry and growth towards financial inclusion – Dock. https://www.dock.tech/en/blog/ley-fintech-chile/