The Forum Mobile+ that took place in Sao Paulo was composed by two days of panels. The first day focused on mobile commerce and the second one more on mobile finance with a specific day dedicated to “bots”. I will talk especially about the mobile finance journey. However, I want to mention that the mobile commerce evolves very fast as new technologies appear and related fraud processes become more complex. Putting both subjects at the same conference implies that e-commerce and fintechs share technologies and learnings and that’s why in the future the frontier between both of them can be blurry.
The mobile finance day started with a presentation of fintechs. The panel was made up of fintechs from different areas and stages of growth and therefore with different strategies and challenges to approach. The audience was mainly represented by big and medium companies from financial services, IT and ecommerce. They were very involved in the discussion with several questions. This shows the latent curiosity to learn and discover what makes the success and uniqueness of the fintechs. Among the speakers we had: Neon Bank (a Brazilian Digital Bank with focus on millennials), Easy Invest (an online stock broker), Guiabolso (financial management app), Youse (first online insurance that sells customized products with focus on millennials) and Acesso (a prepaid card). During the conversation, all the fintechs mentioned how they use technology, the relationship with their clients and the internal culture that they create within their companies. Several compliance questions were asked by the audience. All the fintechs are aware of regulation and stick to the current rules. Nevertheless, they are also active in this domain being in contact with the regulator when it is needed. When asked about the CTO in each startup, the answers were very different. For some of them, the position of CTO does not exist because they believe in a horizontal organization and each project manager is a sort of CTO. For others, the startup has a CTO in the organization but the process to find him was very long. The CTO is a key player in the fintech so it required a lot of effort to find the right match. The CTO can be at the top but he has to be actively involved in all the IT projects. The CTO can also be onboard since the beginning and committed to the project despite pivoting. The example of the CTO, shows that there is no winner model to be the most efficient. However, what can be a challenge and one of the founders mentioned is where to find the right people that excel on development and technological knowledge. The scope of research is not anymore one city but around the country and may be in some years fintech will start hiring abroad.
Banks had also a word to say during this event. In Brazil, there was a strike of banks that last one month in september. During this time, bank branches were closed by consequence customers had to use the digital apps and internet of their banks. Santander, present at the event, said that the number of users of digital banking increased of 100% during the strike. Ironically, the strike helped to educate customers to use more digital banking and therefore go less to the physical agencies. Giving that this is the trend, banks focus on developing products that will be part of the digital life of a customer (Uber, facebooks, Airbnb, Ifood…). Can we imply that agencies will disappear soon? According to Santander, the agencies will play another function to be closer to the client and offer specific and customized products. Banco do Brasil, agreed with Santander on these points. The difference is that the effects of the strike were not so impactful for them because their customers were already very digital. In addition, he highlighted that every innovation for the final user implies also innovation inside. For Banco do Brasil, a historic institution, that can be a challenge. However they managed to create an internal innovation culture that has already showed results.
Banco Intermedium also went on stage at the vent. Banco Intermedium is a 100% digital bank whose clients do not pay any fee to have a bank account either to use basic services. Supermarkets do not require an entrance fee but they do earn money with the products sold inside… a bank should follow the same model. That is the proposition of Banco Intermedium: to democratize banking for all the users and with the time maybe other banks will follow.
With a strong trend of digital dominance within financial services, we would think that digital currencies will also gain strength. However, OKI, ATM machines producer, pointed out that the use of physical currency has not decreased so far, conversely it is only growing. As an ATM producer, it has to modernize its products for example OKI launched a recyclable ATM machine that was very useful during the strike period. The company knows that at some point physical money will stop circulate as it occurred in Scandinavian countries, however in Brazil the phenomenon has not started yet.
Now, let’s have a look at the Bots experience day, a new trend that seduces companies with a customer service. Bluelab claimed the difficulty to hire the service of robots because the billing can be tricky. False accuracy (the customer got the information requested after a long message difficult to read) and false retention (interaction with robots were so inefficient that the customer preferred to drop it and go for human contact) corrupt the results of the bots performance. Companies need to define concrete KPI to assess the real results of the bots and therefore paying the right amount for the service. During the event, Facebook mentioned that 1000 out of 30.000 chatbots created for Facebook messenger were from Brazilians in order to show the increasing involvement of the country in this technology. One interesting example is the bot of Banco Original. During the day of launch, the bot managed to answer 84% of the questions with success and with one month on the air, it has attended more than 80.000 clients.
These 2 days put ahead the technology as key actor of the transformation of e-commerce and financial services. In a fintech, the technology is a team of people who knows to code, who follows the new trends, who needs to learn everyday… who loves what they do to create disruption. On the other side, with contant innovations, technology is also the share of the budget that will constantly increase (infrastructure, softwares, high level employees…). Technology, you don’t need to be fancy, but efficient …very efficient.