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The Top 5 Fintech Trends Reshaping the Financial Services Market

The Top 5 Fintech Trends Reshaping the Financial Services Market

4 min read
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Written by
Monks

A digital customer journey showing a cellphone and tablet to purchase

Last year was a fruitful one for fintech. With particularly explosive growth in Latin America, the financial technology sector became one of the fastest-growing in the world, collecting more than a hundred billion in funding globally. The reasons are simple: the further development of new technologies like artificial intelligence, the popularization of cryptocurrencies and the overall acceleration of digital transformation have all taken the industry to new heights.

Today, fintech apps and software have grown to become a big part of our day-to-day. They provide the infrastructure behind our payments, money transfers and ecommerce transactions—and more importantly, they’ve democratized access to financial services. Especially in countries where inequalities in income and wealth distribution are steeper, and access to financial services is hindered by a high rate of unregistered employment, fintech startups have arisen as a step toward financial inclusion. 

That said, fintech’s impact is also shifting the way traditional banks and other financial institutions are approaching their own long-established businesses. In the last few months working with fintech brands, we’ve identified at least five trends that are delineating the future of the industry—bleeding into all sorts of companies within the finance sector. Let’s take a look.

1. Agility Is Paying Off

A portmanteau of the terms finance and technology, fintech technically speaks to any kind of business that relies on technology to provide enhanced financial services. However, it’s not uncommon to limit its usage to digital-born startups specifically, which are built on the values of automation, flexibility and low-cost transactions achieved by high-end technology.

These startups possess what traditional financial institutions historically lacked: the agility to adapt and evolve at full tilt. It stems from necessity. In this highly-competitive market, only those who present accelerated rollouts of services can take the lead. As our SVP, Growth Daniela Glicenstajn explains, “Those who are quick to make decisions increase their chances of succeeding. We’re talking about constantly testing, learning, implementing, seeing what’s working and speeding down that road.”

Fintech brands need people and partners that are willing to stay on top of the latest technological advancements and changes in consumer behavior. However, identifying people’s needs is only the beginning: their organization must be characterized by a level of flexibility that allows them to deliver with aggressive time-to-market.

2. Taking Empathy Into Account

Despite the many advantages that young fintech companies present in terms of speed, accessibility and convenience, earning people’s trust remains one of the biggest challenges. But while tradition and reputation are defining aspects for consumers, fintech brands have found an even more engaging factor: empathy.

For anyone who’s ever been in debt, struggled with bad credit or was denied access to bank products, the concepts of finance and empathy may seem mutually exclusive—and with good reason. But all too often, these experiences come from a lack of understanding of the clients’ motivations. Fintech brands are better prepared to identify each person’s specific needs and better serve them with solutions that improve their financial wellbeing by removing needless friction.

At the very least, fintech companies have the tools to address their clients directly and more closely. “These brands need to prove their added value and differentiate themselves from traditional financial enterprises,” explains Maria Jimena Rojas, Sr. Account Lead, Growth. “One of the ways in which they are doing this is by taking a more empathetic approach to customer service and their overall relationship with clients.

Monk Thoughts Instead of being cold and distant, fintech brands focus on developing a closer relationship with people.
Maria Jimena Rojas headshot

3. Checking up on User Experience 

On that note about forging closer ties with people, UX plays a prominent role in the equation. Yet when it comes to fintech, balancing bureaucratic obstacles and user experience can be quite challenging. Today, the top fintech brands are looking for areas of improvement by performing UX audits and ISO quality testing—a series of computerized examination processes that offer certification opportunities for organizations according to the standard for quality management systems.

Our Director of Growth Alan Cripps explains, “The user experience needs to be in constant evolution. It’s not a one-time project, it’s something that needs to be worked on every day. Successful fintech brands are always thinking about how to make services more personalized, modern and how to offer relevant content at every stage of the consumer journey.”

4. Banking on Data-Driven Creativity

Especially now that third-party cookies are being phased out, no brand is blind to the importance of owning its data. Born in digital and raised in data protection compliance, fintech brands are usually well versed in first-party data, but should also be quick to bridge the gap between data and creativity. After all, their success depends on their ability to act upon the information. 

“The biggest fintech brands right now don’t see data and creativity as two different things. They are bringing them together in integrated workstreams that empower creatives to deliver campaigns that yield better results,” stresses Growth Manager Francisco Fortes.

Monk Thoughts We can only reach the right people at the right time and with the right message if we’re developing creative campaigns that are data-driven.
Francisco Fortes headshot

5. The Line Between Fintechs and Traditional Banks Gets Blurry

If fintech comes down to combining finance and technology, then we’re looking at something that even the most long-established banks can do. The truth is, the increasing demand for digital transformation is already changing the way these companies approach their client-facing operations. And with these new fintech startups as a source of inspiration, banks can offer the best of both worlds: the benefits of a reputable company built on tradition and the agility of a digital-first brand.

“If we think about companies like BBVA or Banco Azteca, they are already giving their clients the option to operate online,” points out Gastón Fossati, our VP of Data Growth SPLA. “Most of them are looking to bring as many people as possible to the digital space instead of the physical branch."

Monk Thoughts The fact that these companies are baking machine learning and analytics into their strategy is proof that they understand the need for the digitalization of their products and how it helps improve their marketing ROI.
Gastón Fossati headshot

Whether we choose to think of fintech as exclusively digital-born startups or any kind of financial services company that uses technology to enhance its offering, the truth is this industry has witnessed skyrocketing growth in the past couple of years. With numerous innovations in the making and the promise of crypto as the currency of the metaverse, fintech brands are poised to keep growing—as long as they are quick to respond to consumers’ ever-changing needs before their competition.

Our experts in LATAM explore fintech’s explosive growth and what brands are doing right in this space. Our experts in LATAM explore fintech’s explosive growth and what brands are doing right in this space. Fintech LatAm Latin America data driven Digital transformation

Destination Digital: LatAm Brands Must Transform to Stay Relevant

Destination Digital: LatAm Brands Must Transform to Stay Relevant

6 min read
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Written by
Monks

Celebrating our recent merger with Mexico City-based Circus Marketing, a fully integrated digital agency, we’re sharing some insights relevant to the Latin American region. Circus Marketing is one of the most highly respected agencies in Latin America, and enables us to offer the best quality of talent possible for the region–helping us scale up our offering to meet the growing needs of the increasingly digitally mature region, which are discussed in detail below. You can read the following post in Spanish by clicking here, and in Portuguese here. Catch more of our latest and most exciting work from the region right here.

Latin America’s digital landscape has been growing nonstop, driven in part by the increasing availability of mobile services all across the region, where 79% of users will have broadband mobile connection by 2020. With changing user expectations and a new era of connectedness, opportunities abound for brands seeking to enter the vast LatAm market. Global companies such as Uber and Spotify have shown how far they can go: Uber’s second-biggest market after the US is Mexico, while Spotify has been the dominant paid streaming service in the region since 2013. These trends impact all industries and travel is a great example of it.

Monk Thoughts We have to humanize technology, make it intuitive, easy to use and user-centered.

An approach like this will help brands and their partners understand human behavior and preferences to respond quickly and accurately to customer needs. The challenge today is to create human experiences without points of friction, making them as human as possible. While technology is necessary to enable such experiences, brands with true digital maturity put “emotion into the code” so interactions don’t feel robotic and merely transactional.

There is still plenty of room for designers, strategists and technologists to improve the brands’ digital offerings, digitizing and personalizing them with a human perspective to create a creatively differentiated user experience. “The challenge is the humanization of digital. Because in the end, digitization is about transforming products and services into return on investment,” says Rivera.

Digital transformation is a perpetual, never-ending process, and a focus on results is key to starting small and building toward more long-term goals. Brands can successfully begin their digital transformation journey by beginning with projects that have the highest impact on improving the customer experience or driving internal efficiency, becoming more digitally savvy in lockstep with their customers. With customer obsession leading their digital transformation strategy, brands will become well equipped to stay competitive.

Do you want to know how digital innovation can benefit your brand?

Monk Thoughts 79% of LatAm users will have broadband mobile connection by 2020.

Over half of Latin American travelers use online services to research, plan and book trips – with that number continuing to climb exponentially year over year. As we detailed in our recent Travel Trends report for LatAm, travel brands in the region must embrace new digital opportunities available to offer customers seamless experiences, both online and offline, in order to compete in an increasingly competitive market.

In an environment where 67% of business customers prefer to buy through digital channels, according to Salesforce, traditional and small brands cannot afford to postpone their transition to digital any longer, or they risk losing their audience to digitally native brands. Today’s users expect to have everything in their mobile phones or computers, and if they do not get it from your brand, they will look for it elsewhere. Digital transformation has become essential for brands in the accommodation, services, loyalty and entertainment sectors of the travel industry. 

“Digitization is now part of all the travel industry verticals. Digitization is not a trend, it is a necessity,” Carlos Rivera, Consulting & Platforms Lead at MediaMonks, said as part of a panel on travel on Mexican TV network, Canal Once, last month.

Digital is the new black

Imagine wanting to book a room at a hotel your friends have widely recommended in a beautiful Caribbean beach. With your mobile phone in hand, you access the corporate website where just a single image of the hotel’s façade and a telephone number greet you. They expect you to call them not only to book a room, but even to get any information at all. Are we living in the 1940s? They just lost a customer.

Monk Thoughts Digitization is not a trend, it is a necessity.

The number of people travelling within and to LatAm reached 207 million in 2017, and that customer base continues to grow. That, coupled with the rising mobile phone adoption rate, provides travel brands a vital opportunity to enhance their digital services and offerings in the region. Customers today expect a connected digital experience at all times throughout the customer journey. Not getting it, or getting a poor one, will turn potential buyers away. 

To offer great digital experiences, brands must first realize how digital they truly are – or asses their digital maturity. How can a brand know if it’s ready? “To identify your correct target state and how long it will take to get there, evaluate how urgently you must change given the criticality of customer obsession and technology to your firm and how difficult that change will be considering the headwinds you’ll face in terms of company culture, executive trust, legacy systems, and regulators,” writes Laura Koetzle, Sharyn Leaver and Glenn O’Donnell in the Forrester report “The Roadmap For Delivering Customer-Obsessed IT Transformation.”

Having a website or a Facebook page alone does not make a brand digital. Brands must invest in transformation as an ongoing process that will enable connected offerings and touchpoints across platforms. Additionally, brands with lower digital maturities will need to rethink the bare essentials in how they engage with customers – for example, turning the mundane act of booking a plane ticket into an opportunity to meet someone across the world, as we did with our campaign that won Aeromexico the only Gold Cannes Lion for Mexico in 2019. Delivering such experiences seamlessly and instantaneously can require an overhaul in mindset or operations – or both.

travel-post-2

As the number of travelers to LatAm increases, so do the opportunities for the travel industry.

This strategy enables brands to maintain a more customer-centric focus, gaining a more direct and closer relationship with their audience. “Digitization is increasingly present in the lives of consumers,” says Rivera. Consumers are becoming increasingly digital, and there are already so many great digital experiences out there that those with a lower digital maturity need to keep up to stay relevant.

Brands must focus not only on customer-facing technology; platforms and integrations that operate behind the scenes and under the hood impact how the business not only delivers experiences to consumers, but operates as a whole. The far-reaching influence of these technologies can make digital transformation feel like a big, unwieldy initiative. MediaMonks helps brands overcome this by focusing first on the high-priority, quick wins that fuel momentum and ladder into subsequent projects.

One quick project that focused on implementing a mature backend for a unique customer experience is the mobile assistant we made with DDB Berlin and Lufthansa, which makes travel recommendations based on a user’s immediate surroundings. We implemented a CMS that would connect user input – uploaded photos – with Google’s Cloud Vision AI service to identify objects within the photo, which then output copy about a related place. For example, a photo of headphones would recommend visiting Glasgow to hear live bagpipes. Bridging together user input with AI and Lufthansa’s own collection of destinations, the assistant takes full advantage of the power of digital in a unique way. And this is precisely the basis for customer obsession, brands using digital to fully understand their audiences, predicting their needs and delivering a satisfying and emotionally resonant experience.

Humans after all

No two travelers are alike. Even if they look for the same things while traveling, their preferences will set them apart. Many may seek a nice restaurant for dinner, but maybe one of them will want it by a beautiful seaside view, while another will prefer to look at a busy street and yet another one will want to sit away from the windows. The travel experience must be personalized based on preferences such as these. In fact, data from eMarketer shows that 69.4% of US digital marketers see demand and interest from customers being an important driver in data-driven marketing initiatives–higher than any other factor–highlighting just how important personalization is to deliver the experiences that users want.

Discover how digitization is impacting the travel industry in Latin America.

As part of our relationship with Booking.com, this meant creating dynamic video ads where content is delivered in one of 54 different permutations with Google’s Vogon technology, based on individual preferences. The dynamic video speaks directly to customers’ travel needs in how it builds a narrative, using data to offer a more human-centered message.

“The main challenge when adopting new technologies is to create new travel experiences that really connect with each user and that will have the right balance of technology with human contact. We have to humanize technology, make it intuitive, easy to use and user-centered,” says Rivera.

On this subject, Wesley ter Haar, MediaMonks Founder, says that “storytelling is a constant pursuit to identify those things that digital and interactive can provide to create imprints on memory and moments of emotional resonance – that feel personal, but remain true to what research tells us end users will respond to.”

The humanization of technology entails putting users at the very core of all experiences and products that brands have to offer. Whether starting with a user-centered UX/UI design or implementing more complex technologies such as AI or machine learning, the customer must be the main focus for everything brands do in the digital world. To truly become customer-obsessed, brands must focus their strategies and budgets “on the technologies, systems, and processes that win, serve, and retain customers,” according to Forrester.

User-centered digitization is the first step that traditional and small Latin American brands must take to survive and remain relevant in today's market. Destination Digital: LatAm Brands Must Transform to Stay Relevant Digitize your brand and focusing your experience in the user will be key to survive in the competitive Latin American market.
Digitization digital Latin America LatAm user experience consumer journey trends travel industry travel tourism technology humanization

Customer Experience is Key to Enhancing the Travel Industry

Customer Experience is Key to Enhancing the Travel Industry

2 min read
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Written by
Monks

Customer Experience is Key to Enhancing the Travel Industry

There is one statistic that no one in the travel industry can ignore: tourism generated a revenue of US $1.7 trillion in 2018, according to the World Tourism Organization. From hotels, to casinos or airlines, the opportunities available for the myriad of players in this industry abound, and in one region in particular this is crystal clear: Latin America. In our most recent report, Destination LatAm: Trends Shaping the Travel Customer Experience in the Region, we focused on this part of the world to highlight the main trends that are shaping the present and future of tourism through a regional lens—viewed with a global perspective.

New technologies, digital transformation and disruptive new players are just some of the trends that are revolutionizing the travel industry all around the globe. But there is one thing that unites them all: a focus on delivering the best, most innovative customer experience. 

If brands want to survive in this increasingly competitive industry, they must better understand and address their customers’ needs, then deliver upon them with premier, differentiated digital experiences. But achieving this is a complex task that requires adopting new content and production strategies that are better equipped for personalization, positioned to meet users across the digital ecosystem.

Monk Thoughts Tourism generated a revenue of US $1.7 trillion in 2018.

Transformation is an enormous challenge not only for small, budget-limited newcomers but for established brands too. The investment needed to achieve this will test their capabilities at every level of the organization. Wanting to satisfy the customer’s needs will not be enough, as brands must develop agile processes and forge partnerships spread across the wider consumer journey to better support their users’ every travel need.

With customer experience in mind, brands can begin their digital transformation to make their travel as smooth as possible while enhancing their business.

Find out how customer experience is impacting and moving the travel industry in Latin America.

Several trends are shaping the present and future of the travel industry in Latin America through an enhanced, tourism-focused customer experience. Customer Experience is Key to Enhancing the Travel Industry Our new report offers insights straight from the leading travel brands in LatAm.
customer experience data travel LatAm Latin America hotels casinos resorts tourism travel industry report airlines 2019 travelers sustainability

Enhancing LatAm Brands with Local Talent and Global Perspective

Enhancing LatAm Brands with Local Talent and Global Perspective

5 min read
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Monks

Mejorando a las Marcas Latinoamericanas con Talento Global y una Perspectiva Global

There’s a great opportunity ahead for brands in Mexico and Latin America, where access to the internet is still growing: only 55% of Latin Americans had access to the internet in 2017, according to Statista. As more of their audience go online, brands are met with a golden opportunity: offer differentiated, premier digital experiences that will impress the next generation of digital users in the region.

Of course, that’s easier said than done–and brands that fail risk losing their audience to major global players who have invested years in perfecting their UX learnings. And challenges in retaining talent or having the resources available to execute creative ideas exist for brands anywhere in the world, not just Latin America. But organizations navigating this new demand for premier digital experiences can still go far by standing on the shoulders of giants–or tried-and-true veterans of digital who know their stuff and can lead on the path of success.

In fact, helping unlock brands’ abilities to build these creative, digital experiences is a key goal of the MediaMonks Mexico City office. With a team native to the region and augmented by the larger, global MediaMonks network of talent, we’re uniquely positioned to respond to the greatest challenges that brands across Latin America face. “With the outstanding Mexican talent that has joined our Mexico office, we are able to create campaigns with international standards that work locally,” says Marcelo Planchart, Head of Expansion LatAm.

What’s Rafahu’s passion? Pop culture, which he tries to sneak into all of his work with a creative, unexpected spin. “I’m a geek of animation, science fiction, design, comic books, video games, illustration and art,” he says, “so I always try to put something of all that pop culture that I consume every day into my work.” Through this approach, he tries to create concepts that will resonate emotionally with audiences, while keeping the key message intact. It’s a perspective that differentiates his projects, making them a bit more unique and artful in the process–and shows how important it is for brands to provide their teams creative freedom and flexibility. 

Being creative should be fun, after all. “That part of exploring, of facing a void where there is nothing, starting to shape that idea visually and defining what is going to communicate–that is my favorite,” Rafahu says. 

Whether they face challenges in executing a creative idea or finding entirely new ways of adapting to the digital landscape, brands all over Latin America can augment their teams through strategic partnerships that fill those gaps. Guidance in digital transformation and cultivating the creative flexibility for teams to chase their passions or investigate their curiosities are just two of the ways that brands in the region can forever change the way they work. Through these processes, Latin American brands face great potential in strengthening equity and helping to differentiate from their competitors. 

clubpriemier_headerimage_1920x480

MediaMonks is driving the digital transformation efforts of Club Premier, Mexico's top loyalty program.

Putting Innovation at the Forefront

Innovation is a key element of MediaMonks’ philosophy around the world, and at the Mexico City office that’s made clear through its dedication to digital transformation, a service that’s strengthened by our vast expertise and insight from working around the world. These efforts are spearheaded by Carlos Rivera, Consulting and Platforms Lead, who is in charge of leading the platform development operation in addition to digital transformation. 

A great example of the digital transformation guidance provided by the office is the work we’ve done with Club Premier, Mexico’s top loyalty program. From the process of building the app to supporting it over the long term, we’ve worked side by side with Club Premier to make decisions and help envision the digital future of the company. “And that dedicated, long-term relationship has a lot of value versus projects where I do the work, then I leave and I don’t see you again,” says Carlos Rivera. “We are changing that, and our Mexico City office is one of our global offices spearheading this approach, and thinking about long-term projects where we sell not only services, but value and strategy.”

Rivera’s expertise on the matter is wide-reaching, as he has traced a journey not just across the sea and back, but through the early years in ecommerce and app development to today. Having founded an ecommerce startup in Mexico selling custom-made surf suits during the industry’s infancy, Rivera had an itch to learn more about how technology could help organizations succeed. This drive prompted him to pursue a master’s degree in France, before getting his PhD in Innovation and Technological Transference in Spain. While in Madrid, Rivera founded an app-developing startup, which quickly grew to become one of the top app developers in the country.

See how we helped Coppel scale up production for back-to-school.

Rivera’s expertise on the matter is wide-reaching, as he has traced a journey not just across the sea and back, but through the early years in ecommerce and app development to today. Having founded an ecommerce startup in Mexico selling custom-made surf suits during the industry’s infancy, Rivera had an itch to learn more about how technology could help organizations succeed. This drive prompted him to pursue a master’s degree in France, before getting his PhD in Innovation and Technological Transference in Spain. While in Madrid, Rivera founded an app-developing startup, which quickly grew to become one of the top app developers in the country.

Monk Thoughts Applying digital transformation to a brand can help it reach its business goals and revolutionize its relationship with clients.

“Europe is some years ahead of LatAm in terms of innovation and digital transformation. So there is an opportunity to apply trends, strategies and processes that you can’t find yet in the region,” says Rivera. Through the expertise and insights of talent like his, MediaMonks can apply its global capabilities, while imprinting local projects with the vision and knowledge to fill the clients’ needs.“I saw the opportunity to bring the know-how I had learned in Europe to the Mexican market and apply it to local brands,” says Rivera. Leading digital transformation for brands like Club Premier has allowed him to apply his acquired knowledge to enhance the brand’s capabilities to compete and succeed in an extremely competitive market.

Offering Flexibility to be Creative

Since joining MediaMonks, Rivera found that the company has an environment that invites him to be proactive and propose ideas. “The management team is very open to test these ideas and takes away your fear of being wrong,” says Rivera. “I really liked something [MediaMonks founder and COO] Wesley ter Haar said: it’s better to make mistakes trying to do something new to improve, than to always be wrong and keep repeating the same mistakes.” This goes hand in hand with his personal philosophy: “I am not afraid of change. My life path proves it.”

victoria_heart

Art done by MediaMonks' Mexico Art Director Rafael Aguilar "Rafahu" for Cerveza Victoria's 'Mestizo' campaign.

Brands should likewise cultivate an environment that facilitates flexibility and a passion to experiment and learn through creative problem solving–but they’d be forgiven if they don’t have the budget or time to allow for such an approach. These limitations are only some of the reasons why IHAs in particular struggle to retain the talent they need, but brands can make up for it by augmenting their teams with specialized, experienced talent through partnerships.

Rafael Aguilar–or  “Rafahu” as he is known in the creative world–is MediaMonks Mexico’s Art Director. Attracted to the variety of talent and disciplines cultivated in the MediaMonks team, Rafahu joined the monastery in early 2019, and has already made an impact through his very particular and striking visual style.

“There is no shortage of resources. If you look anywhere there is strength in any creative task,” he says. “Although the Mexico office may not have hundreds of employees…yet, you can get support or additional resources that you don’t have here, you can get them from any of the many offices MediaMonks has around the world, anytime.” What’s unique about his current position compared to other regional agencies is that he has the resources to fully develop the creative potential in every project he undertakes–and brands strapped for talent can just as easily tap into that pool of passionate artists and creatives.

From digital transformation to visually astounding art direction, MediaMonks' Mexico City office has attracted some of the top local talent to create a multidisciplinary team that offers differentiated, premier digital experiences with a global perspective that will impress the next generation of digital users in Mexico and Latin America. Enhancing LatAm Brands with Local Talent and Global Perspective Top local talent converge at the MediaMonks’ Mexico City office to create innovative and impacting digital experiences with a global perspective.
digital transformation in-house IHA LatAm Mexico Latin America art direction local talent innovation creativity

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