Challenges in the digitalization of the financial sector in Spain

The digitalisation of the financial sector in Spain is at a very advanc level, although it is not exempt from facing specific challenges.

Spanish banking is the second most digitalis in the world, but the unstoppable growth of online financial services users means meeting diverse and changing expectations.

 

The increase in online customers accelerates the digitalization of the financial sector

We already know that the coronavirus accelerat the digital transformation processes underway in all sectors. Only in the banking and financial sector the pace of technological incorporation continues to grow, given the expectations of new customers. Recent studies indicate that 55% of bank users will increase virtual interaction with their entities through applications. Meanwhile, 87% of those who increas the use of digital banking in the critical months of the pandemic say they will continue to use this channel at the same level. Likewise, 44% want to carry out operations through mobile applications and WebApps. And 37% aspire to carry out all their financial and banking operations from their mobile phone.

The development of these applications is gear towards innovation through participation in startup accelerators. For years, many banks have also been acquiring entrepreneurial projects dicat to developing digital solutions for the sector we are analyzing. This explains why Spain is the sixth largest fintech newborn photo iting worldwide. More than 400 startups/fintechs operate in our country ; 75% of them work in partnership with traditional financial and banking organizations.

In this way, a synergy is establish between the traditional financial and banking sector and startups. The former take advantage of the agility of fintechs in developing new technologies and testing new business models. For their part, the latter also benefit from the strengths of the traditional sector: business know-how, trust, financial capacity and a portfolio of clients that startups cannot reach in the short term. All of this creates conditions of efficiency and flexibility that allow improving the user experience and meeting their current and future expectations.

 

specialized photo editing

 

PSD2, bigtech and open banking, the other side of fintech

Without taking away from their intention to spe up their digital transformation, traditional banks have another reason to interact with startups. The incorporation of new digital native players into the financial market, support by bigtechs, have greater capacity and spe to innovate. These entities can even anticipate the nes betting email list expectations of users. In other words, bigtechs are more powerful fintechs that began to operate as payment and investment platforms or directly as online banks.

In addition to the above, the Second EU Payment Services Directive or PSD2 came into force in 2020. This legal figure eliminat the “exclusivity” that banks had in the management of their clients’ financial information. Now the latter can authorize the use of their data to other non-financial entities, in order to access a wide range of innovative services.

Access a wide range of innovative services
In this sense, PSD2 is driving the concept of open banking (or open data ), which allows any entity to access Zaujmout Své Vážené Hosty a Chcete information, process payments and authenticate users securely. To get an idea of ​​the potential of this new paradigm, Alli Market Research pricts that the global open banking market will reach $43.152 billion by 2026.

 

 

 

Leave a comment

Your email address will not be published. Required fields are marked *