Banking on Digital Growth
Banking on Digital Growth

Episode · 2 months ago

138) #InsideDigitalGrowth: It’s Time to Go ALL-In on Human-Centered Growth


Do different markets require a different approach to digital growth? Yes and no.

Regulations, economies and cultures may be different.

But human-centered growth is universal.

In this solo episode, I’ll be answering a question about Fintech deployment in Latin America — but the answer transcends borders.

I cover:

- How to focus on the uniqueness of emerging markets like those in Latin America

- Human-centered growth

- Why you need to go ALL-in on your digital growth

You can find this interview and many more by subscribing to Banking on Digital Growth on Apple Podcasts, on Spotify, or here.

Listening on a desktop & can’t see the links? Just search for Banking on Digital Growth in your favorite podcast player.

No, I'll ask, thinking about latinAmerica, what happens with Fintech deployment going forward? What willhold growth back? Is it cultural isn't? Regulation is a political and who is inthe best position to innovate and capture growth going forward into thefuture? Well this is a great question Noel and one that transcends culturesand boundaries and it is a question that many financial brand marketing andsells leaders should be thinking about regardless of where they are in theworld, which is why I'm looking forward to answering it for you on today'sepisode of Banking on digital growth. Okay, you're listening to banking on digitalgrowth with James robert lay a podcast that empowers financial brand marketing,sales and leadership teams to maximize their digital growth potential bygenerating 10 times more loans and deposits. Today's episode is part ofthe inside digital growth series where James robert shares answers to some ofthe biggest digital marketing and sales questions he gets from the digitalgrowth community. Have a question you want to get answers to on a futureepisode visit www dot go ask jr dot com to submit your question today. Nowlet's go inside digital growth greetings and hello I am James robert,ley and welcome to the 138th episode of the banking on digital growth podcastwhere I James robert lay your digital anthropologists, commit to continue tocoach and guide you along your digital growth journey as you commit tocontinue to coach and guide people beyond financial stress towards abigger, better and brighter future. Today's episode is part of the insidedigital growth series and I look forward to answering a question fromNoel, who is the corporate treasurer for a financial brand in latin America.And before I answer Noelle's question, I'd like to invite you to join me on afuture podcast episode to gain clarity to talk through your biggest digitalmarketing cells or leadership questions that you'd like to get answers to. Soplease do text your questions 28325495792. And my team will get withyou to schedule a time for you to join me on the show. Let's get back toNoelle's question here and I want to first provide some context around histhinking as he shared with me that some emerging markets such as china southafrica India, all big quote unquote, big ticket countries are leading theFintech and non traditional banking space pioneering really, despite theirlow financial literacy and banking penetration in those markets, Hecontinues thinking about Latin America with more than one trillion in GDP andclose to 100 billion and Remittance from the north to the south. Whathappens with Fintech deployment going forward? He asked, what will holdgrowth back? Is it cultural isn't...

...regulation is a political and who is inthe best position to innovate to capture growth going forward into thefuture. Once again, this is a great question Noel for anyone who islistening from around the world as the thinking I'm going to share todaytranscends all borders and boundaries that transcends all cultures as theanswer that I think through and talk through provides a clear path forward,not rooted in technology but really rooted in people. And to begin withyour question that you ask around culture is very valid. And I'd like totake this a step further to note the importance of digital culture within aspecific region, particularly through the lens of digital anthropology, whichis right at the center of where we focus. That's the study of theintersection of marketing, sells technology and human behavior and youreferenced china and India as big ticket countries leading the fintechand non traditional banking space too. Despite their low financial literacyand banking penetration for a moment, I want to put banking behaviors aside andjust look at the overall digital adoption behaviors that would first andforemost be a natural requirement for any type of fintech growth. In 2020 inBrazil, the most populated country in Latin, America Brazil had around 141million smartphone users and that's about a 66% penetration rate into thetotal population of about 212 million people. And furthermore, let's look atMexico, the second most populated country in the region which wasestimated to have about 80 million smartphone users in 2020. And that's a62% smartphone smartphone penetration in a country with a total population of129 million On the flip side in 2020, the number of smartphone users in chinareached 970 million people. It's almost one billion people which is stillaround 63% of their population and follow similar trends to what we'reseeing in brazil, what we're seeing in Mexico And in India smartphone adoptionwas estimated to have reached over 748 million people in 2020. Now Drivers alittle bit which is about 54% of their total population. Stateside here we areseeing smartphone reach for 2020 was about 294 million people or about 87%of the total population. Which which really is leading the world from a froma population penetration standpoint. And the point of this exercise whenwhen going in and looking at the number, looking at the data, looking at theresearch, the point is to consider what is the potential reach of any audiencethat has access to a smartphone capability which is going to berequired to boost fintech adoption. And...

...while China Brazil Mexico they all havesimilar market penetration rates coming around that 60 65% penetration rate.China's total number of smartphone users is over 10 times greater thanthat of Mexico's which is over. Which is also over seven times greater thanthat of brazil. So just getting access to eyeballs is going to be an importantconsideration for any fintech at a global level. So if I'm in latinAmerica, if I'm in africa, if I'm in the U. S. Even for that matter, who wasthinking about launching a fintech, I first and foremost want to see how bigmy potential audiences when making a case for the future and really a casefor future growth. And the reason that I note this and I note the U. S. Isbecause even while Fintech continues to explode here stateside, I do seeopportunities for both fintech and traditional financial brands to tapinto niche market opportunities. But it's important that those niche marketopportunities are large enough or big enough to create value over the longterm, they're not too small to where we start to get into something and werealize that there's just not the ability to scale within that particularniche market. I've had numerous conversations with Geoffrey Kendall,who's the ceo of Nimbus on the podcast where we've talked about this idea thatniche is the new local and I believe this idea of niche once again ittranscends all cultures, it transcends all boundaries and this is why asfintech and traditional financial brands look for collaborationopportunities, it is more important now than everbefore to know your market and recently I was doing a keynote session for anevent in Dubai and I I think that the interesting thing about this particularevent was I didn't have to get on a plane to give this key note, I wasactually able to just zoom in teleport in if you will and provide someperspectives for the start of what was a really good learning experience overin Dubai and staying around and listening to a panel discussion thattranspired after my opening remarks. It was interesting because one of thepanelists was talking about this idea and and really the need to know andunderstand the market now more than ever before, particularly within thefinancial services space, because They've made a reference that, you know,this particular institution had launched about 300 products over theyears without really doing any type of early market research into identifyingwhy are we launching these products to...

...begin with in the first place? And sothat's a uh this this idea of of knowing your market and really I wouldsay going all in on your market, all being an acronym A. L. L. Will help tocreate a strategic competitive advantage no matter where you are inthe world. And what I mean by going all in A. L. L. It means this number oneasking good questions, getting really good at asking good questions. What arepeople's pain points? What are the questions, what are their concerns?What's keeping them up at night and how really how are these problems affectingtheir health, their overall health, their physical health, their mentalhealth, their relational health, because money is at the root of allmental physical and relational problems and granted there are other concerns aswell. But the more research that we're doing, it's it's rooting back tofinancial stress if you will, technology has transformed our worldand digital has changed the way consumers shop for and buy financialservices forever. Now, consumers make purchase decisions long before theywalk into a branch if they walk into a branch at all, but your financial brandstill wants to grow loans and deposits, we get it. Digital growth can feelconfusing, frustrating and overwhelming for any financial brand marketing andsales leader, but it doesn't have to because James robert wrote the bookthat guides you every step of the way along your digital growth journey,visit www dot digital growth dot com to get a preview of his best selling bookbanking on digital growth Or order a copy right now for you and your teamfrom Amazon inside you'll find a strategic marketing manifesto that waswritten to transform financial brands and it is packed full of practical andproven insights, you can start using today to confidently generate 10 timesmore loans and deposits now back to the show. Once we get really good at asking goodquestions, we can then begin to listen to people's problems and listen to theanswers that they give. This is where we can tap into the emotional side ofmoney and the more that we as financial brands and Fin techs can createprescriptions and cures to solve people's pains to cure their ills, toguide them towards a bigger, better, brighter future, the better off peoplewill be well, you know I always say if you can transform a person's wallet youcan transform and improve their physical well being, you can transformand improve their mental well being, you can transform and improve theirrelational well being. So number one we...

...ask good questions, Number two welisten to the problems and number three the third of the second l is we learnfrom observation because what people say and what people do or sometimes atopposite ends of the spectrum. I did an episode on this podcast, really talkedabout how to go beyond the traditional focus group and this is looking at justobservation, studies the way that people interact with money, the waythat people interact relational li the way that people interact withtechnology and so when we can look and observe, when we can listen to people'sproblems, When we can ask good questions, we can gain key insights andperspectives of how to help guide them forward on their own financial journeysAnd this is something that transcends all cultures and it is a key reasonthat we teach financial brands, what we call the 90 day growth method which isa system that empowers financial brands and fin techs to escape getting stuckdoing digital because it's so easy to get stuck doing anything. But when youget stuck doing digital, it can be a very deadly place and and that's whyit's important to create space and time to stop doing so that you can firstreview what you've done, learn from those experiences and then think deeplyabout the key insights that you gain And use that thinking to then reallyplan out your next 90 day period of growth. I want to come back here for amoment, back to your unique situation in latin America and do some someadditional thinking for, you know well here and when we look at latin Americaand some of the opportunities that exist, it's important once again comingback to people putting people at the center of all of your thinking and allof your doing, it's important to consider how people shop and buy at amacro level. For example, in latin America, the economy historically hasbeen relying heavily on cash on physical currency exchange and I wantto go back to looking at the examples before around smartphone adoption inboth Mexico and brazil. But this time let's look at it through the lens ofpayments As in Mexico more than 90% of payments or paper base and in Brazilit's around 70% of payments or paper base. However, according to the MexicoDaily News E Commerce transactions have really seen a dramatic surge over thelast 12 months or so Mexico for example, saw a 32% increase year over year in2020 with aecom transactions and a lot of that is rooted in the pandemic. Butand this is a really big but buying products online is still relativelyslow as only a subset of the population... latin America has the financialproducts to participate in these online digital economies. It's alsointeresting and it's really important to note for a global audience listeningtoday that the default for most people in latin America from, from a behaviorstandpoint is they'll order online and then pay at a local convenience storein cash. So it's really this digital physical interaction here. Anotherpoint to make in latin America as really around the world for that matter,particularly we're thinking about the underbanked or the unbanked is rootedin trust or a lack of trust, particularly within the banking system.As this lack of trust historically in banking systems is another factor thatFin techs moving into the space will have to consider it. Not only do wehave the technology side that we have to bridge on 11 side of the coin punintended. We also have the trust factor that we're going to have to bridge aswell. And even with some of these historical challenges, whether that betechnology based currency based trust base. Even with some of thesehistorical challenges in consumer behavior, there are three things that Isee showing favorable signs to fintech players in Latin America as well asaround the world, particularly speaking to the point of latin America is numberone, government regulation Is appearing to be what I call fintech friendly. In2018, the government Mexico passed a fintech law that helped to create aframework for finn text to offer new products and do business legally underthe same terms and conditions as a lot of traditional financial brands havedone historically. Number two is even though latin America has been primarilya cash based economy, Covid has really accelerated the transformation ofconsumer behavior is more and more people have tried out new financialproducts and apps as opposed to visiting physical stores, physicallocations and back to this point of payments and commerce in general, ecommerce in latin America has seen double digit growth throughout thepandemic. And I think when you start looking at this as a macro level, youstart seeing these trends and patterns across borders across cultures and andback to Latin America point number three, Fintech investment continues toflow in at an exponential rate really. Over the last 12 to 18 months, we'veeven seen the rise of the Brazilian Fintech new bank leading the way is oneof the largest neo banks in the world. And so in closing, no matter where youare in the world, no matter if you're at a traditional bank or credit unionor if you're working on the Fintech side of things, the most importantthing that you can do as you look ahead...

...towards future growth, to create aneven bigger, better, brighter future for people is to put people at thecenter of your thinking, put people at the center of all of your doing andthis is what we call here at the Digital Growth Institute, it's calledHuman centered Growth and I want to reference something that Derek Suttonfrom Auto Books recently shared with me in a in a linked in conversation thatwe were having. Derek shared Human contact matters when it matters most tothe end, consumer human contact should not be used as a crutch to not embracedigital and a focus on digital should not be used as a crutch to not alsoembrace the importance of human contact. The key as Derek rights is tounderstand when consumers want or need each of the other and then design asolution that helps them to make progress on their own terms. I reallyappreciated this thinking that Derek shared with me, which I thought wasrelevant for today's topic and conversation because when we look atthe relationship between money, between people, between technology and itreally just focusing on the people and the technology, the human digital, wecan bridge the human digital divide by studying the young and the young symbolwhich has origin in taoism dating back to the fourth century fourth century Bcat the heart of really encapsulating the taoism philosophy, finding the waydiscovering harmony and balance within the young. And the young symbol has twodistinct parts. The yuan is the dark side of the symbol, The young On theother side is the light side of the symbol. However, contrary to being whatwe would consider polar opposites. The young and the young are not completeopposites and this is in fact, you know each side. If you google the symbol,you'll see the circle with the black and the white. Each side has a littlebit of the other in it while curling up and holding the other side imbalance.Put another way. one side cannot exist without the other. The same is truewhen thinking about future growth and financial services. Around around thehuman and or digital experience. One cannot exist without the other. Eachside human digital balances out the other, it complements the other and itreally elevates the other side to be even that much better. So as you lookahead towards the future of digital growth, remember it is about people andtechnology is just a tool that connects people together to transact, to createvalue, to really help people ascend to...

...the next level as a whole. So if you're thinking about digitalmarketing, sells leadership, you have a question as you're looking ahead onyour own digital growth journey and you have a question like Noel Text me yourquestion that you'd like to get some clarity on 283-254-95792. And I lookforward to you joining me on a future podcast episode as my guest to talkthrough your question together until then and as always be well, do good andmake your bed. Thank you for listening to another episode of banking ondigital growth with James robert. Ley like what you hear, tell a friend aboutthe podcast and leave us a review on apple podcast, google podcasts orSpotify and subscribe while you're there to get even more practicalimprovement insights, visit www dot digital growth dot com to grab apreview of James, roberts, bestselling, book banking on digital growth or ordera copy right now for you and your team from amazon inside you'll find astrategic marketing and sales blueprint framed around 12 key areas of focusthat empower you to confidently generate 10 times more loans anddeposits until next time, be well and do good.

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