Traditional banking in Latin America faces a major challenge for the future. A large number of non-traditional competitors are entering the market: digital-native companies that are starting to offer all kinds of financial services as a complement to their core offerings, which may or may not be financial in nature. These are the so-called Super Apps, which appeal not only to the unbanked — customers who are not part of the traditional banking system — but also to banked users. Why? Because they seek simple, fast, and secure financial experiences, and these companies have found a way to integrate themselves into their users’ daily lives, offering additional services in a subtle, seamless manner — becoming partners rather than hurdles.
They’re tapping into a huge market opportunity, as Latin America has historically had a large informal economy, which traditional banks have largely ignored. But as digital transactions become more common, there’s growing demand for alternative financial services — precisely what these digital companies are offering.
And this is a problem for regional banks: if they don’t change their strategy, they will find it increasingly difficult to compete with these new players who move at a different speed.
This is exactly what a study by the consulting firm Forrester estimates will become the norm by 2030, just five years from now. We are heading toward an invisible banking system — omnipresent but not intrusive, integrated into the broader digital ecosystem, data-driven (requiring good information for analyzing and predicting customer behavior), and contextual (aligned with people’s values).
Banks in the region have known this for years, and most have implemented digital strategies. But they still face a persistent problem: they are not in tune with their customers. This is partly because many are trying to build digital platforms from scratch, aiming for the results they see competitors achieving, but without a clear roadmap to get there.
A solution built on experience
To help solve this, at Baufest we developed a framework called Digital Booster, which has a key differentiator: it’s based on our proven experience in the field, with four products we’ve successfully developed and launched to market.
Its main added value is that it allows banks to avoid reinventing the wheel. It offers a tested, precise, and detailed strategy for developing and iterating digital-native financial products — ones that complement what banks already offer. Because today, we must think less in terms of financial services markets and more in terms of ecosystems, where products and services are expected to interact.
This Digital Booster we created at Baufest has four main stages, defined by our direct experience — both successes and mistakes — in product development. It’s not a theoretical checklist: it’s proven, and we know it works.
The first and crucial stage is product definition — identifying the monetization model, the vehicle for that product (whether it will be a spin-off or a speedboat), and a preliminary marketing and communication strategy. Always with one key condition: each stage is time-bound, because we’ve identified the optimal duration to reach each goal.
Of course, this product was born to help traditional banks offer modern, competitive services, but it can also serve any company that wants to become part of the financial ecosystem, including fintechs and non-financial companies.
Adapting to a constantly changing ecosystem
These new products are also more aligned with market demands, which are increasingly focused on simple, direct solutions. Customers aren’t looking for a traditional banking experience — they want a clear tool (for example, a payments and micro-credit system), one that’s fast to respond (getting a loan shouldn’t take a full day or more), and secure in its operation (trust is key in financial transactions).
From the provider’s side, this enables a more direct relationship with users, minimizing intermediaries — which are proven to slow down operations and reduce value. It also simplifies the creation of better solutions that can quickly adapt to new user needs. Otherwise, they risk losing relevance in the market.
Ultimately, the future of financial services belongs to those who best adapt to compete in the new ecosystem — to organizations that know how to use technology as an enabler to better understand and respond to what people want, need, or expect.
By Luis Battilana, Country Manager of Mexico & Financial Industry Services Head at Baufest.
