Banking in Chile Current Behavior Changes Analysis¶
Ongoing Behavior Changes¶
Based on the analysis of the provided reports, several ongoing behavior changes are impacting relationships and demand within the Chilean banking value chain. These changes are driven by technological advancements, evolving customer expectations, regulatory shifts, and increased competition.
One significant change is the increasing adoption of digital channels by both individual and business customers. Consumers are increasingly utilizing online banking platforms and mobile applications for a wide range of services, from basic account management and transactions to more complex activities. This shift reflects a demand for greater convenience, accessibility, and speed in banking services. This behavioral change impacts the Relationship Management & Servicing stage by moving interactions away from physical branches and towards digital interfaces, requiring banks to invest heavily in user experience and digital support. It also affects Product and Service Development & Delivery, as the emphasis shifts to designing and delivering services optimized for digital platforms.
Another key behavioral dynamic relates to the demands of underserved segments, including lower-income individuals, migrant populations, and certain SMEs. These groups often face barriers to accessing traditional banking services, such as a lack of formal credit history or insufficient collateral. Their behavior is characterized by a need for simpler products, alternative credit assessment methods, and accessible service points, which may not always align with the standard offerings of large private banks. This impacts the Financial Intermediation stage by highlighting the need for more inclusive lending practices and affects Product and Service Development & Delivery by necessitating the creation of tailored financial inclusion products, as exemplified by BancoEstado's role and initiatives like CuentaRUT and Cuenta FAN. The Relationship Management & Servicing for these segments requires different approaches, often focusing on basic financial literacy and accessible support channels.
The rise of Fintech companies and the implementation of the Fintech Law are also influencing customer behavior by offering alternative, often more specialized, financial services. Customers seeking specific solutions like faster payments, niche lending, or user-friendly digital wallets may increasingly turn to fintechs. This competitive pressure encourages a behavioral change in customers to explore options beyond traditional banks for particular needs. This directly impacts the Product and Service Development & Delivery stage for banks, urging them to innovate and compete with agile fintech offerings, and influences Relationship Management & Servicing as banks seek to retain customers who might otherwise be drawn to specialized providers. The Open Finance framework, enabled by the Fintech Law, is expected to further facilitate customer behavior shifts by allowing them to share their data and access integrated services from various providers.
Furthermore, customer and business demand behavior is influenced by the prevailing economic conditions. While the reports do not provide specific quantitative data on growth or decline in customer numbers tied to the economy for 2024-2025, economic fluctuations impact the demand for core banking products like loans (consumer, mortgage, commercial) and investment products. In periods of economic uncertainty, there might be reduced demand for credit and increased focus on savings or more conservative investments, and vice-versa. This behavioral response to economic cycles directly affects the Funding/Resource Gathering (deposit behavior) and Financial Intermediation (lending demand) stages.
Finally, the evolving regulatory landscape itself can drive behavioral changes for both banks and their customers. Requirements like enhanced KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures, while crucial for compliance, can add friction to the onboarding process for customers, potentially influencing their behavior when opening new accounts. The implementation of Open Finance will fundamentally alter how customers can interact with their financial data and services, fostering new behaviors related to data sharing and the use of third-party applications integrated with their bank accounts.
In summary, the dominant behavioral changes include a move towards digital interaction, a persistent need for inclusive financial services among underserved groups, a growing willingness to use non-traditional financial providers (fintechs) for specific services, and demand fluctuations influenced by the economic climate. These changes collectively necessitate strategic adjustments across all stages of the banking value chain, particularly in service delivery, product development, customer relationship management, and technological investment.
| Behavior Change | Impact on Value Chain Stage: Funding/Resource Gathering | Impact on Value Chain Stage: Financial Intermediation/Transformation | Impact on Value Chain Stage: Product and Service Development & Delivery | Impact on Value Chain Stage: Relationship Management & Servicing | Impact on Value Chain Stage: Risk Management & Compliance |
|---|---|---|---|---|---|
| Increasing adoption of digital channels | Potentially impacts deposit behavior (e.g., increased use of online transfers vs. branch deposits). | Enables digital loan applications and processing, requiring robust digital credit assessment tools. | Drives the need for seamless and intuitive online and mobile banking platforms; development of digital-first products. | Shift from branch-based to digital customer support; increased importance of online self-service and CRM systems. | Heightened focus on cybersecurity and fraud prevention for digital channels; need for secure digital identity verification and transaction monitoring. |
| Demands of underserved segments | May require development of accessible deposit products with lower barriers to entry (e.g., basic accounts). | Need for alternative credit scoring methods and tailored lending products for individuals and SMEs with limited traditional history. | Development of simple, low-cost products and services; need for accessible delivery channels beyond traditional branches (e.g., agents, mobile-only options). | Requires focused financial literacy programs and accessible customer support channels tailored to specific needs of these groups. | Challenges in managing credit risk for segments with less historical data; need for robust controls for high-volume, low-value transactions. |
| Increased competition from Fintechs | Limited direct impact, but successful fintechs in lending/payments could indirectly affect overall funding needs of banks. | Fintechs competing in niche lending areas (e.g., P2P lending, online SME finance) can reduce traditional banks' market share. | Pressure to innovate and develop competitive digital products/services, particularly in payments and specialized lending; potential for partnerships under Open Finance. | Need to enhance digital customer experience and offer competitive pricing/features to retain customers; potential for collaborative relationship models with fintech partners. | Requires understanding and managing risks associated with partnering with fintechs; ensuring compliance with regulations for joint offerings or data sharing. |
| Demand fluctuations from economic conditions | Directly impacts demand for deposit products (savings behavior) and wholesale funding needs based on lending activity. | Directly impacts demand for consumer, mortgage, and commercial loans; affects credit risk levels based on borrower repayment capacity. | Influences the demand for investment products and potentially insurance; requires flexibility in product offerings to match changing customer needs and risk appetites. | May impact customer interactions related to financial stress or investment advice needs; requires adaptable customer service strategies. | Increased focus on credit risk management and provisioning during downturns; need to adjust market risk strategies based on economic volatility. |
| Evolving Regulatory Landscape (Fintech Law, Open Finance) | Requires systems and processes for potential data sharing related to funding sources under Open Finance. | May influence credit assessment processes if Open Finance data is utilized; need to comply with new provisioning rules. | Requires development of APIs and infrastructure for Open Finance; need to adapt product design to integrate with third-party services. | Changes in customer interaction around data consent and sharing; need for clear communication about Open Finance benefits and risks. | Significant impact on compliance requirements (data security, privacy, API standards); need for new risk management frameworks for Open Finance and fintech partnerships. |
References¶
- Banking in Chile Final Customers Identification
- Value Chain Analysis of the Banking in Chile.
- 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
- 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/
- Tipos de Productos Financieros - Scotiabank. https://www.scotiabank.cl/Personas/Productos-financieros
- Productos bancarios - CMF Educa - Comisión para el Mercado Financiero. https://cmfeduca.cmfchile.cl/productos-bancarios/
- Balance económico 2024 y desafíos para 2025 - Escuela de Administración y Negocios. https://administracionynegocios.uai.cl/noticias/balance-economico-2024-y-desafios-para-2025/
- Política monetaria y financiera en Chile: Desafíos para este 2025 - PwC. https://www.pwc.cl/cl/es/sala-prensa/publicaciones/pwc-en-los-medios/2025/politica-monetaria-financiera-chile-desafios-2025.html
- CMF issues regulation amending Information Systems Manual Files. https://www.cmfchile.cl/institucional/secciones/sala-de-prensa/novedades/novedades_banca/2024/comunicado_14102024.html
- Unlocking the Fintech Law: Open Finance in Chile - Konsentus. https://www.konsentus.com/insights/unlocking-the-fintech-law-open-finance-in-chile/