Globalisation winds in the Latin American banking industry
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    Globalisation winds in the Latin American banking industry Globalisation winds in the Latin American banking industry Document Transcript

    • Globalisation winds in the Latin American banking industry An Economist Intelligence Unit report sponsored by MasterCard Worldwide Latin America & Caribbean
    • Preface Globalisation winds in the Latin American banking industry is an Economist Intelligence Unit briefing paper, sponsored by MasterCard. The Economist Intelligence Unit’s editorial team conducted the interviews, executed the survey and wrote the report. The findings and views expressed in this report do not necessarily reflect the views of the sponsor. Kim Andreasson was the editor and project manager. Thierry Ogier was the author of the report. Maureen Van Kuren was responsible for layout and design. Our research drew on two main initiatives. We conducted a global online survey in October 2007 of 208 financial services executives in order to assess the impact of globalisation on the Latin American banking industry. To supplement the results, we also conducted in-depth interviews with financial services experts in Latin America. Our thanks go out to all survey respondents and interviewees for their time and insights. June 2008
    • Globalisation winds in the Latin American banking industry Summary G lobalisation forces have a strong impact on the Latin American financial services industry, and consolidation is far from over, especially in retail banking. Most financial services executives surveyed for this report distant runners-up. Retail banking, meanwhile, is the business area where competition is expected to increase the most within the next five years. feel that the trend will accelerate in the medium Executives expect Latin America’s term and that local banks are likely to become the target of foreign acquirers. A key finding of the importance to grow as a proportion survey is that a majority of executives, especially of their organisation’s business those who are based in North America, expect Latin America’s importance to grow as a proportion of their organisation’s business. Key findings Which of the following best reflects the way your organisation n Latin America is increasingly important to organi- manages its operations in Latin America? sations’ globalisation strategies. A large majority of We have offices located in several Latin American countries 44% executives surveyed expect that a greater share of banking revenue will come from Latin America in the We do not have offices in Latin America but manage our medium term. This trend is especially strong among regional operations there from executives based in North America. the outside 26% n Competition to attract customers in Latin America We have office(s) located in one will intensify. Meanwhile, financial services in the Latin American country 30% region are still relatively underdeveloped and organi- sations are in a position to enhance their portfolio of financial products. n Brazil is the most attractive market in the region. Most survey respondents expect the global Brazil is clearly identified as the favourite investment economy to have a greater impact on their destination by survey respondents (71%), followed by company’s operations than local markets will Mexico (43%) and Argentina (38%). have in the medium term. As a result, the current n Competition in retail banking will increase the financial turmoil worldwide is likely to affect the most. According to survey respondents, more than region, although Latin America looks less vulnerable one-quarter (27%) expect the greatest increase in than it used to. competition in retail banking, compared with 17% in Brazil is considered the main investment investment banking, 15% in corporate banking and destination in the future, with Mexico and Argentina 12% in consumer finance and cards. © The Economist Intelligence Unit Limited 2008 3
    • Globalisation winds in the Latin American banking industry Introduction G lobal banks have positioned them- selves around the world in order to capitalise on strong economic growth in emerging markets and the strengthening of large consumer How will increased competition impact your organisation’s banking activities in Latin America? Will increase Customer service Will remain the same Will decrease Don’t know/Not applicable markets. Some of the biggest corporate transac- 56% 26% 2 15% Profitability tions, such as ABN Amro’s recent acquisition by a 34% 32% 17% 17% consortium of other European banks (RBS, Fortis and Product proliferatioin 53% 29% 3 15% Santander), have had a direct impact on the Latin Product customisation American financial market. 55% 27% 5 14% Product commoditisation In order to assess the effect that globalisation 37% 40% 7% 16% will have on the Latin American banking industry, Penetration of new customer segments 58% 26% 2 14 % we conducted a global online survey, sponsored by MasterCard, of 208 financial services executives who deal with the region. The results point to investment destination. The quantitative survey was the growing importance of Latin America as an complemented by three interviews with banking experts in the region. According to Pedro Malan, a former Brazilian About the survey finance minister who now chairs Unibanco (one In October 2007 the Economist Intelligence Unit surveyed 208 of Brazil’s main retail banks), globalisation forces financial services executives in order to assess the impact of globali- have already led to a revolutionary shift in consumer sation on the Latin American banking industry. Respondents includ- expectations. The globalisation of consumer ed representatives of financial institutions that are active in Latin patterns and aspirations has also acted as a stimulus America. They were drawn from a wide cross-section of regions, towards social mobility. “This is an extraordinary including South America (23%), North America (22%), Europe opportunity for banks and their business,” says Mr (27%—including eastern Europe and the CIS), Asia Pacific (23%) as Malan. “Latin America will offer fertile ground for well as the Middle East and Africa (5%). Sixty-six percent of survey expansion strategies.” respondents worked for institutions that have fewer than 1,000 Vicente Rodero, director of a Spanish bank, BBVA, employees while 12% worked for organisations that employ more for South America, goes further, predicting that the than 10,000 people. More than one-third (36%) were employed by winners will be the financial institutions that respond organisations that have less than US$1bn in global assets, while more efficiently to consumers’ expectations and 23% worked for organisations that have more than US$500bn in “customise the financial-product supply according assets. Fifty-nine percent of respondents described themselves as to the profile of each consumer, in a multi-channel board members, C-level executives or vice-presidents. focused environment,” says Mr Rodero. 4 © The Economist Intelligence Unit Limited 2008
    • Globalisation winds in the Latin American banking industry Part I: The increasing importance of Latin America as an investment destination—expansion prospects A fter hyperinflation and a succession of severe economic crises, Latin America’s economic fortunes have been revived in recent years. A deep restructuring of the banking What proportion of your organisation’s annual revenue do you expect to come from Latin America in five years’ time? Less than 10% Reduced operating costs 37% system was implemented in several countries, and 26% a series of foreign takeovers and acquisitions have Increased revenues 11% since taken place. The nature and scope of the activ- Improved customer service ity varies depending on the country. For example, it 4% Faster responses to changing demand has been stronger in Mexico than in Brazil. The global 17% acquisition of ABN Amro by a consortium of European Improved customer insights to facilitate development 6% banks in 2007 had a direct impact in the region, as one of the bidders, Santander, has a strong interest in developing its activities in Latin America, as part of of institutional building, democracies are getting its globalisation strategy, especially in terms of retail stronger and economies are ready to take off. They banking. “Latin America has the highest GDP per head need a strong banking sector,” he adds. among emerging markets, double that of India and BBVA’s Mr Rodero sees “an increase in consumption 35% higher than China. But if you look at the finan- and a significant increase in the demand and needs cial sector, it is still underdeveloped, with low levels for financial products and services.” Meanwhile, of credit-to-GDP ratio,” says José Juan Ruiz, director consumer preference is becoming more globalised of research and strategy at the Santander Group for and universal, says Unibanco’s Mr Malan: “As income the Americas. “Progress has been achieved in terms per head increases, there is a gradual alteration in consumption standards toward more global patterns. What proportion of your organisation’s annual revenue is currently derived from Latin America? In Brazil, for instance, there is a strong interest in new, technologically advanced products, which is also Less than 10% 60% an expression of globalisation. This has implications 11-30% 10% for the expansion of the retail industry: references are becoming more global all the time.” As Santander’s Mr 31-50% 5% Ruiz points out: “People are becoming richer and this points to the need to finance their spending.” 51-70% 2% More than70% 16% The wind ahead Against such a background, banking activity is Don’t know 7% expected to intensify in the region. More than three- quarters of survey respondents pointed to some form of © The Economist Intelligence Unit Limited 2008 5
    • Globalisation winds in the Latin American banking industry expansion strategy to increase their presence in Latin How do you think your organisation’s investment in its cards payments operations in Latin America America, preferably organic growth (23%) or strategic will change in the next five years? alliance (22%), rather than merger or acquisition Increase more than 5% (18%) or a joint venture with a local partner (15%). 31% More specifically, a large majority of executives Increase 1-5% 17% expect that a greater share of banking revenue will No significant change 12% come from Latin America in the medium term. This Don’t know / Not applicable trend is especially identified by executives based in 40% North America. When asked about the proportion of their organisation’s revenue that is derived from Latin them expect that this will happen in five years’ time. America, executives based in North America forecast a More than one-half of respondents who think that strong increase. At present, 61% of them say that the their bank’s revenue in Latin America will increase to region accounts for less than 10% of their revenue. between 51% and 70% of annual revenue within five years also come from North America. This compares with only about one-quarter at present. Brazil, Mexico and Argentina are the Geography most attractive markets in the region. Brazil, Mexico and Argentina are the most attractive Brazil is clearly identified as the markets in the region. Brazil is clearly identified as the favourite investment destination (71%), favourite investment destination probably because of its promising macroeconomic outlook following years of slow economic growth. It is ranked well ahead of Mexico (43%), where there However, when asked about their five-year prospects, is little room for further acquisition (investment only 23% of respondents expect that the region will there would rather focus on organic growth), and account for less than 10% of their revenue. Argentina (38%), which has revived after a dramatic Meanwhile, the proportion of those who expect debt default at the beginning of the decade. an increase rises significantly: at present, less than Nevertheless, executives based in North America 10% say that Latin America accounts for between 11% would rather invest in Mexico (58%) than in Brazil and 30% of their revenue; one-third of them expect (53%) and Argentina (24%). This is likely attributed that this will happen in five years’ time. Only six to the proximity and the integration between the respondents say that Latin America currently accounts US and Mexican economies. Meanwhile, a large for more than one-half of their revenue; and 11 of proportion of west European-based executives 6 © The Economist Intelligence Unit Limited 2008
    • Globalisation winds in the Latin American banking industry Do you think the following are likely outcomes of the current Business areas turmoil in international capital markets on the Latin American financial industry by the end of 2007? According to 27% of survey respondents, retail Likely Unlikely Don’t know banking is the business area where competition is expected to increase the most within the next five There will be negative impact on liquidity and credit years. Interestingly, some retailers have already 56% 36% 8% Institutions will struggle to stay in business launched their own banking activities in the region, 31% 57% 12% such as Wal-Mart in Mexico and Mexico-based Azteca Industry consolidation will accelerate 39% 30% 9% in Brazil (Banco Azteca, which is linked to Mexican retailer, Elektra, has recently invested in Brazil and targeted low-income consumers in the north-eastern selected Brazil as their priority (77%). region). BNP Paribas’s consumer credit arm, Cetelem, The survey indicates a correlation between has also signed partnerships with Carrefour in Brazil as executives considering investing in Mexico and well as with retailers in other countries in the region. those who are upbeat regarding retail banking Executives who are based in South America point and consumer finance. In fact, Mexico receives its to retail banking as the best investment opportunity highest marks as a future investment destination (38%). There are also a large proportion who point opportunities lie in consumer finance (56%) and to microfinance (30%) as well as consumer finance retail banking (48%). and cards (28%) as a good investment opportunity. At the same time, executives who think that Which of the following segments do you think offer the corporate banking, investment banking and asset best investment opportunities in Latin America for your management offer the best investment opportunities organisation? Select up to two overwhelmingly look to Brazil (over 75%) as an Investment banking investment destination. Among those who see 36% Assest Management corporate banking as an opportunity, Argentina also 24% receives high marks (54%). Corporate banking 22% Latin American institutions may eventually Retail banking 19% become a target, with 56% of respondents saying Consumer finance and cards that many will end up being controlled by newcomers 17% Private banking although few admit that their own banks may 14% be acquired in the process. “The consolidation Microfinance 11% process among the largest banks is largely over in Other, please specify Brazil. I think it would be difficult among the big 7% Don’t know players here, although it may proceed with smaller 6% institutions,” explains Mr Malan. © The Economist Intelligence Unit Limited 2008 7
    • Globalisation winds in the Latin American banking industry Part II: Globalisation versus local market dynamics— the state of retail banking C ompetition from foreign banks has been identified as the main feature of globalisation in the financial industry, ahead of the need to invest in information technology system, will require simple and fixed-price products.” The global economy is expected to have a greater impact on their company’s operations than local markets in the medium term. The main risk (IT). When asked about the specific impact on their to this scenario is the impact of the international own organisation, executives pointed to product financial turmoil in the region. While Latin America customisation, new customer segmentation, and is indeed perceived as being as vulnerable as customer service. Mr Rodero, from BBVA, points other emerging markets, it is also viewed as less to the need to “implement a low-cost multi- fragile than in the past, which is a sign of investor channel banking model focused on technology and confidence in the region. innovation.” Meanwhile, the primary source of globalisation trends to affect the region is still expected to come from North America (52%). Moreover, the general Latin America is perceived as being perception of brands of foreign banks in Latin America is positive, according to 88% of South as vulnerable as other emerging American-based survey respondents. As a result, markets. It is also viewed as less there will be less risk of rejection from consumers in the event of foreign acquisitions. fragile than in the past Among those who say that local market dynamics will have the greatest impact on their organisation, 88% say Brazil is one of the most attractive The quantitative survey points to a correlation investment destinations. Mr Malan, of Unibanco, between those who agree that “competition from also insists that local institutions can still rely on the foreign banks will intensify” and those who think importance of custom and consumer relationships that their “organisation’s investment in its card- (thereby fostering trust and loyalty). “The weight of payment operations in Latin America will increase by their tradition and their knowledge of the market, more than 5% in five years”. Adds Mr Rodero: “The customer relationships based on trust and credibility supply of products will be associated to credit cards, are a great asset,” he says. and without a doubt with a proposal for the bank Meanwhile, the growth outlook for electronic business, which will have a very radical development payment systems looks promising, and its of multi-channel banking. The services and products development is seen as a natural trend. Mr Malan sees supply will have very low costs, as a large part of a great future in credit cards for individual consumers the population, which will begin to use the banking as well as retailers’ own cards and co-branding: “The 8 © The Economist Intelligence Unit Limited 2008
    • Globalisation winds in the Latin American banking industry Which of the following segments serve as your potential is still enormous for payments and fund organisation’s primary income stream in Latin America? transfers via cards and consumer credit—not only with the main brands, as today there are a lot of large Investment banking 19% store chains issuing cards that may also be used in Retail banking 18% other affiliated outlets,” he says. Corporate banking More than one-half of respondents who gave an 18% Asset Management opinion on the future of card-payment operations 10% predicted an increase in investment of more than Private banking 7% 5% over the next five years, and only one survey Microfinance taker predicted a decrease of more than 1%. Online 4% Consume finance and cards banking and e-payment operations are priority 4% investment destinations as competition intensifies. Other, please specify 17% A large proportion of investment bankers select Don’t know 4% online banking, card-payment and e-payment operations as key investment priorities in the next five years. The most positive impact of heightened If your organisation intends to increase its presence competition, meanwhile, is expected to be a greater in Latin America, what type of expansion strategy is it most likely to favour? access to capital markets (international and local), as well as the effect on revenue and the ability to find a Opening our own offices 23% suitable bank as a partner. Strategic alliance Finally, the adoption of best practices is regarded 22% Merger or acquisition as the most positive impact of globalisation in 18% terms of human resources. Staff recruitment Joint venture with a local financial services company and training is considered to be one of the key 14% None of the above; we do not intend to investment destinations as competition intensifies. increase our presence in Latin America “You have to develop an in-house capacity to 8% Improved customer insights to facilitate development deal with all kinds of risks. Today only 40 of our 15% 66,000 [Santander] employees in Latin America are Spanish-born,” says Mr Ruiz. © The Economist Intelligence Unit Limited 2008 9
    • Globalisation winds in the Latin American banking industry Conclusion T he global survey of senior financial services executives shows that globalisation will continue to transform the Latin American banking industry. Positive developments as investment priorities. There is still room for improving customer segmentation and product customisation in the region, and companies operating there will have to focus on these issues to in the economy of the region have led to the boost their competitiveness. expansion of the consumer market, which is being As globalisation trends come mainly from the US, targeted by financial and credit institutions. Gains the outcome of the current financial crisis will be in purchasing power in various countries of the likely to be significant and may trigger a new period region have also led to an increase in demand for of uncertainty. One of the key issues to watch will be financial services, while financial institutions are whether US and European banks that have suffered ready to expand in Latin America. the most from the sub-prime crisis will redefine their In general, Brazil is considered to be the strategies for the Latin American region as a whole. most attractive place to invest by a majority of A majority of survey respondents feel that the respondents, ahead of Mexico. Yet, there are global economic conditions are expected to have important regional variations. North America- a greater impact on their company’s operations based executives surveyed are clearly looking than local market dynamics in the medium term. south to invest. They would rather invest in Mexico, Nevertheless, Latin America looks less vulnerable which is a member of the North American Free- than it used to be, which is prompting investors to Trade Agreement (NAFTA), than in Brazil, which is feel more confidence in the future of the region. As pursuing its own agenda in order to boost South long as key macroeconomic policy and fundamentals American economic and financial integration. remain in place, the region is poised to attract Retail banking is the business area where investment in financial services. Brazil is expected competition is expected to increase the most in to enjoy the benefits of its investor-friendly status, the medium term while online banking as well while Mexico may suffer from the current US e-payment transactions have been identified financial downturn. 10 © The Economist Intelligence Unit Limited 2008
    • Appendix: survey results Globalisation winds in the Latin American banking industry Appendix: Survey results In October 2007, the Economist Intelligence Unit conducted a global online survey of 208 financial services executives in order to assess the impact of globalisation on the Latin American banking industry. Please note that not all answers add up to 100% because of rounding or because respondents were able to provide multiple answers to some questions. Which of the following best reflects the way your organisation How many employees does your organisation have in manages its operations in Latin America? Latin America? We have offices located in several Fewer than 1,000 66% Latin American countries 44% 1,001 to 5,000 8% We do not have offices in Latin America but manage our 5,001 to 10,000 5% regional operations there from the outside 26% More than 10,000 12% We have office(s) located in one Latin American country 30% Don’t know 8% What proportion of your organisation’s annual revenue is What proportion of your organisation’s annual currently derived from Latin America? revenue do you expect to come from Latin America in five years’ time? Less than 10% 60% Less than 10% 37% 11-30% 10% Reduced operating costs 26% 31-50% 5% Increased revenues 11% Improved customer service 51-70% 2% 4% Faster responses to changing demand 17% More than70% 16% Improved customer insights to facilitate development 6% Don’t know 7% © The Economist Intelligence Unit Limited 2008 11
    • Appendix: survey results Globalisation winds in the Latin American banking industry Which of the following segments serve as your Which Latin American countries (including the country of organisation’s primary income stream in Latin America? headquarters, if applicable) will be your organisation’s most important investment destinations in over the next five years? Select up to three. Investment banking 19% Brazil Retail banking 71% 18% Mexico Corporate banking 43% 18% Argentina Asset Management 38% 10% Chile Private banking 17% 7% Columbia Microfinance 8% 4% Costa Rica Consume finance and cards 6% 4% Venezuela Other, please specify 6% 17% Panama Don’t know 4% 4% Peru 4% Cuba 3% Guatemala 3% If your organisation intends to increase its presence in Latin America, what type of expansion strategy is Domican Republic it most likely to favour? 2% Uruguay 2% Opening our own offices 23% Bolivia 2% Strategic alliance 22% Ecuador 2% Merger or acquisition 18% Paraguay 1% Joint venture with a local financial services company El Salvador 1% 14% None of the above; we do not intend to Haiti increase our presence in Latin America 1% 8% Honduras Improved customer insights to facilitate development 1% 15% Nicaragua 1% Other, please specify 1% 12 © The Economist Intelligence Unit Limited 2008
    • Appendix: survey results Globalisation winds in the Latin American banking industry Which of the following segments do you think offer the How do you think your organisation’s investment best investment opportunities in Latin America for your in its cards payments operations in Latin America organisation? Select up to two will change in the next five years? Investment banking Increase more than 5% 36% 31% Assest Management Increase 1-5% 24% 17% Corporate banking No significant change 22% 12% Retail banking Don’t know / Not applicable 19% 40% Consumer finance and cards 17% Private banking 14% Microfinance 11% Other, please specify 7% Don’t know 6% How do you expect consolidation to develop in the financial In your view, will increased competition in Latin America services industry in Latin America over the next five years? have a positive or negative impact on your organisation in the following areas? It will accelerte 63% Positive Impact No impact Negative impact Don’t know It will stabilise 27% Profitability 50% 24% 18% 7% It will decelerate 1% Revenues 58% 20% 15% 7% Don’t know 9% Market share 39% 30% 24% 7% Costs 34% 33% 25% 7% Access to international capital 57% 32% 3 7% Access to local capital markets 54% 32% 4 10% Ability to find a suitable bank as a partner 48% 29% 9% 14% Likelihood my bank will be acquired 15% 54% 9% 22% Likelihood my bank will make an acquisition 45% 31% 3 22% © The Economist Intelligence Unit Limited 2008 13
    • Appendix: survey results Globalisation winds in the Latin American banking industry Which of the following segments do you expect Do you think the following are likely outcomes of the current will see the greatest increase in competition in turmoil in international capital markets on the Latin American Latin America over the next five years? financial industry by the end of 2007? Likely Unlikely Don’t know Retail banking 27% Investment banking There will be negative impact on liquidity and credit 17% 56% 36% 8% Corporate banking Institutions will struggle to stay in business 16% 31% 57% 12% Consumer finance and cards Industry consolidation will accelerate 12% 39% 30% 9% Private banking 7% Asset managment 6% Micofinance 6% How do you think Latin American banks will adapt to the Don’t know advance of foreign competitors over the next five years? 40% They will become more efficient, but many will end up being controlled by newcomers 56% Compared to other emerging markets, how well prepared is Latin America’s financial industry to weather this They will become more type of turmoil? efficient and preserve their independence 21% Better prepared 28% They will seek protection About the same 38% with the help of government regulators 15% Less prepared 29% Don’t know 7% Don’t know 5% How vulnerable is Latin America’s financial industry to this type of turmoil now, compared to the past? More vulnerable than in the past 8% About the same 35% Less vulnerable 51% Don’t know 6% 14 © The Economist Intelligence Unit Limited 2008
    • Appendix: survey results Globalisation winds in the Latin American banking industry In the country or countries where your organisation operates in Latin How will increased competition impact your organisation’s America, what is the attitude towards the brands of foreign banks? banking activities in Latin America? Will increase Will remain the same Will decrease Don’t know/Not applicable Generally positive 60% Customer service Generally negative 12% 56% 26% 2 15% Profitability Generally indifferent 17% 34% 32% 17% 17% Product proliferatioin 53% 29% 3 15% Don’t know 10% Product customisation 55% 27% 5 14% Product commoditisation 37% 40% 7% 16% Penetration of new customer segments 58% 26% 2 14 % In your view, how will globalisation affect your industry in Latin America? In your view, from which region does the primary globalisation (Rate on a scale of 1 to 5, where 1=agree strongly and 5=disagree strongly) trends affecting Latin America come from? 1 Agree strongly 2 3 4 5 Disagree strongly 6 Don’t know North Europe 53% Competition from foreign banks will intensify 44% 37% 9% 2 7% Europe 21% Foreign institutions will face tough competition from local competitors 22% 37% 25% 7% 2 4 More investment in IT will be needed Asia 15% 38% 41% 14% 2 4 More highly skilled staff will be hired 37% 40% 15% 4 4 Emerging markets 11% Overall operational costs will have to be reduced 21% 40% 26% 4 2 7% More outsourcing 19% 31% 32% 9% 3 6% Increased access to global capital markets 25% 44% 20% 4 1 6% Local product knowledge increased 29% 44% 19% 2 5 Customer experience will be improved 25% 45% 23% 1 5 © The Economist Intelligence Unit Limited 2008 15
    • Appendix: survey results Globalisation winds in the Latin American banking industry What do you think are the benefits that your organisation’s In your view, which of the following factors will workforce can obtain from globalisation? Select all that apply. have the greatest impact on your organisation’s Latin American operations in the next five years? Examples of best practices can be brought in from other regions Global economic conditions 73% 31% Staff from other regions can join teams Local market dynamics of Latin American colleagues 23% 49% Increased competition Latin American staff can be sent to other regions 18% 39% Regulatory frameworks Latin American staff can be sent to other 13% countries within the region Trends in credit markets 30% 6% None of the above; our workforce will not Political development benefit from globalisation 6% 4% Don’t know Other, please specify 2% 3% If competition among banks intensifies in Latin America, to which How can companies that provide bank payments area of the business do you think investment should be directed services help your organisation to meet its in the next five years? objectives? Select all that apply. (Rate on a scale of 1 to 5, where 1=agree strongly and 5=disagree strongly) 1 Agree strongly 2 3 4 5 Disagree strongly 6 Don’t know Increasing processing efficiency 47% Developing new products for corporate clients Card payments operations 41% 19% 29% 25% 7% 4 15% Supporting risk / fraud management E-payment operations (eg, new system for smart cards) 40% 23% 36% 19% 5% 2 14% Developing new products for consumers Staff recruitment and training 35% 21% 42% 23% 5% 9% Supporting credit management Online banking 29% 27% 43% 14% 7% 1 9% Increasing our focus on the low income market Physical infrastructure (eg, branches, ATM machines) 23% 15% 34% 26% 10% 3 11% Helping with new account acquisition Advertising and marketing 20% 17% 36% 33% 4 1 8% Helping with portfolio management Lobbying the government 19% 14% 23% 33% 13% 7% 10% Increasing our focus on the affluent market Restructure payments systems 14% 13% 34% 27% 7% 5 13% None of the above; we do not have use for bank payment services 5% Don’t know 8% 16 © The Economist Intelligence Unit Limited 2008
    • Appendix: survey results Globalisation winds in the Latin American banking industry In which region are you personally based? What are your organisation's global assets in US dollars? Under $1bn Western Europe 24% 35% Asia-Pacific 23% $1bn to $2bn 7% South America 23% $2bn to $5bn 2% $5bn to $10bn 2% North America 22% $10bn to $25bn Middle East 6% and Africa 5% $25bn to $50bn 4% Eastern Europe $50bn to $100bn (including CIS) 2% 7% $100bn to $250bn 8% $250bn to $500bn 5% Over $500bn 23% Which of the following best describes your title? What are your main functional roles? Select up to three functions. Board member Finance 3% 39% CEO/President/Managing director Strategy and business development 15% 34% CFO/Treasurer/Comptroller General management 5% 29% CIO/Technology director Risk 3% 25% Other C-level executive Marketing and sales 7% 19% SVP/VP/Director Information and research 24% 12% Head of Business Unit Customer service 8% 8% Head of Department Operations and production 9% 7% Manager IT 19% 7% Other R&D 6% 5% Legal 4% Human resources 3% Procurement 2% Supply-chain management 2% Other 6% © The Economist Intelligence Unit Limited 2008 17
    • While every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd. nor the sponsor of this report can accept any responsibility or liability for reliance by any person on this report or any of the information, opinions or conclusions set out in the report. LONDON NEW YORK HONG KONG 26 Red Lion Square 111 West 57th Street 60/F, Central Plaza London New York 18 Harbour Road WC1R 4HQ NY 10019 Wanchai United Kingdom United States Hong Kong Tel: (44.20) 7576 8000 Tel: (1.212) 554 0600 Tel: (852) 2585 3888 Fax: (44.20) 7576 8476 Fax: (1.212) 586 1181/2 Fax: (852) 2802 7638 E-mail: london@eiu.com E-mail: newyork@eiu.com E-mail: hongkong@eiu.com