Banking in Chile Emerging Consumption Needs Analysis¶

Impact of Behavior Changes¶

The Chilean banking sector is undergoing significant transformation driven by shifts in customer behavior. These changes, stemming from increased digital adoption, the specific demands of underserved segments, intensified competition from fintechs, fluctuating economic conditions, and an evolving regulatory environment, are fundamentally altering the landscape and influencing the banking value chain from funding to relationship management.

The increasing adoption of digital channels is perhaps the most pervasive behavioral shift. Customers now expect seamless, intuitive, and fast interactions across online and mobile platforms for everything from simple balance checks to complex transactions and loan applications. This moves interactions away from traditional physical branches, impacting the Relationship Management & Servicing stage by requiring banks to build robust digital support systems and sophisticated CRM tools. In Product and Service Development & Delivery, the focus is shifting towards designing digital-first products and ensuring that all offerings are optimized for mobile and online access. While the direct impact on Funding/Resource Gathering may be less pronounced, the ease of digital transfers can influence deposit flows. For Risk Management & Compliance, the digital shift necessitates significant investment in cybersecurity and fraud prevention for online channels, as well as secure digital identity verification.

The demands of underserved segments, including lower-income individuals, migrant populations, and certain SMEs, highlight a persistent need for greater financial inclusion. These customers often lack traditional credit histories or collateral, requiring alternative approaches in the Financial Intermediation stage, such as innovative credit scoring methods. Their behavior indicates a need for simpler, more accessible, and lower-cost financial products, impacting Product and Service Development & Delivery by necessitating tailored offerings (like basic accounts) and accessible delivery channels beyond physical branches (e.g., digital-only options or partnerships). Relationship Management & Servicing for these groups requires targeted financial literacy programs and easily accessible support. Managing credit risk for these segments presents a unique challenge for Risk Management & Compliance.

The rise of Fintech companies and the implementation of the Fintech Law are introducing new competitive dynamics and influencing customer behavior by presenting alternative solutions for specific financial needs. Customers are increasingly willing to use non-traditional providers for services like faster payments, specialized lending, or user-friendly digital wallets. This pressures banks in Product and Service Development & Delivery to accelerate innovation and compete with agile fintech offerings, potentially leading to partnerships facilitated by the Open Finance framework. In Relationship Management & Servicing, banks must enhance their digital customer experience and potentially collaborate with fintechs to retain customers who might otherwise switch for niche services. The impact on Financial Intermediation can be seen as fintechs capture market share in specific lending segments. Risk Management & Compliance must adapt to managing risks associated with these partnerships and ensure compliance with new regulations governing data sharing and integrated services.

Demand fluctuations driven by economic conditions directly influence customer consumption behavior regarding financial products. Economic uncertainty can lead to reduced demand for credit (impacting Financial Intermediation) and a greater focus on savings (influencing Funding/Resource Gathering). Conversely, economic growth can spur demand for loans and investment products (affecting Financial Intermediation and Product and Service Development & Delivery). Banks need flexibility in their product offerings and adaptable Relationship Management & Servicing strategies to provide relevant advice based on the economic climate. Risk Management & Compliance is particularly critical during economic shifts, requiring adjusted credit risk management and provisioning strategies.

Finally, the evolving regulatory landscape, notably the Fintech Law and the move towards Open Finance, is shaping customer behavior by changing how they can interact with their financial data and services. The upcoming implementation of Open Finance will enable customers to share their financial data with third-party providers, fostering a behavior of seeking integrated services and potentially switching providers more easily. This will heavily impact Product and Service Development & Delivery by requiring banks to develop APIs and infrastructure for data sharing and integrated offerings. It will also influence Relationship Management & Servicing as customer interactions will involve data consent and managing relationships with third-party providers. For Risk Management & Compliance, this necessitates new frameworks for data security, privacy, and managing risks in a more interconnected ecosystem.

Emerging Consumption Needs

Based on these behavior changes, several key consumption needs are emerging within the Chilean banking sector:

Need for Seamless Digital Experiences: Customers require fast, reliable, and intuitive digital platforms for all banking services, optimized for mobile access.
Demand for Instant and Convenient Payments: Increased reliance on digital channels drives the need for faster and easier payment methods.
Need for Financial Inclusion Products: Underserved segments require accessible, simple, and low-barrier financial products, including basic accounts and flexible credit options.
Requirement for Alternative Credit Assessment: Individuals and SMEs lacking traditional credit history need banking services that utilize alternative data or methodologies for credit evaluation.
Desire for Specialized Financial Services: Influenced by fintechs, customers seek niche or highly specialized financial solutions tailored to specific needs (e.g., specific lending types, budgeting tools).
Expectation of Integrated Services (Open Finance): As Open Finance develops, customers will need and expect the ability to securely share their financial data and access integrated services from various providers through banking platforms or third-party apps.
Need for Accessible Financial Education and Support: Underserved segments, in particular, require easy-to-understand information and readily available support channels.
Demand for Secure Digital Interactions: Growing concern over cybersecurity necessitates robust security measures and clear communication about data protection.
Need for Flexible Products and Advice during Economic Uncertainty: Customers require financial products and guidance that can adapt to changing economic conditions.

Here is a table summarizing the potential impact of these emerging needs across the banking value chain:

Emerging Consumption Need	Potential Impact on Value Chain Stage: Funding/Resource Gathering	Potential Impact on Value Chain Stage: Financial Intermediation/Transformation	Potential Impact on Value Chain Stage: Product and Service Development & Delivery	Potential Impact on Value Chain Stage: Relationship Management & Servicing	Potential Impact on Value Chain Stage: Risk Management & Compliance
Seamless Digital Experiences	Digital onboarding could simplify deposit account opening.	Digital application processes for loans become standard.	Prioritization of user-friendly mobile and online banking interfaces; development of digital-only features.	Increased investment in digital customer support (chatbots, in-app help); shift in staff roles towards digital assistance.	Enhanced focus on digital fraud detection and prevention; need for robust data privacy in digital channels.
Instant and Convenient Payments	Influences the demand for instantly accessible funds and digital wallets.	Enables faster loan disbursement and repayment options.	Development and promotion of instant payment solutions; integration with payment ecosystems.	Customer support for digital payment issues becomes critical.	Need for real-time fraud monitoring in payment systems; compliance with payment security standards.
Financial Inclusion Products	Design of basic deposit products with minimal requirements.	Development of micro-credit or tailored small business loans.	Creation of simplified product bundles; utilization of alternative delivery channels (e.g., agents).	Implementation of financial literacy programs; provision of accessible, potentially non-digital, support options.	Development of new credit risk models for underserved segments; management of risks associated with high-volume, low-value transactions.
Alternative Credit Assessment	Indirect impact, but could expand the potential customer base for deposit products.	Implementation of alternative data sources and AI/ML for credit scoring; development of new lending models.	Tailoring loan products to fit alternative assessment outcomes.	Training staff to explain and utilize alternative assessment processes with customers.	Development of risk models for alternative credit data; ensuring fairness and compliance in new assessment methods.
Specialized Financial Services	Indirect impact, but successful specialized offerings could attract specific customer segments.	Collaboration or competition with fintechs offering niche lending solutions.	Partnership with fintechs for specialized offerings; development of in-house niche products; emphasis on flexibility and customization.	Provision of support for integrated fintech services; potential for joint customer service models.	Managing risks of third-party partnerships; ensuring regulatory compliance for integrated services.
Integrated Services (Open Finance)	Requires infrastructure to share deposit account data with third parties (with consent).	Potential for third parties to initiate payments or access credit data (with consent).	Development of APIs and infrastructure for data sharing and service integration; creation of platform-based offerings.	Customer education on data sharing and consent; managing complex customer inquiries involving multiple providers.	Significant focus on data security and privacy compliance; development of risk frameworks for Open Finance ecosystem participants.
Accessible Financial Education and Support	Providing clear information on different account types and their benefits.	Explaining lending products and terms in simple language.	Development of educational content about products and services; design of intuitive interfaces.	Investment in easily accessible support channels (helplines, community centers); training staff in clear communication.	Ensuring that educational materials comply with consumer protection regulations.
Secure Digital Interactions	Ensuring secure access to online account information.	Secure transmission and storage of sensitive loan application data.	Implementing robust cybersecurity measures for digital platforms; clear communication of security features to customers.	Providing secure channels for customer communication; training staff on identifying and reporting security threats.	Continuous investment in cybersecurity infrastructure and protocols; compliance with data protection regulations.
Flexible Products and Advice	Offering adaptable savings or investment products based on economic outlook.	Providing flexible loan repayment options or restructuring possibilities.	Developing financial planning tools and resources; offering a range of investment options catering to different risk appetites.	Providing personalized financial advice and guidance during economic shifts.	Adapting credit risk models to economic forecasts; stress testing portfolios against economic scenarios.

References¶

Banking in Chile Current Behavior Changes Analysis
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/