Florabel, the Individual Segment Director at Santander, comes armed with more than a decade in financial services. She is also an industrial engineer with an MBA in IE Business School in Madrid. Across her trajectory in financial services, she has spent numerous years in traditional banks in Peru focused on digital business. However, in the last four years, Florabel has spent time in helping fintechs as Rappibank (Perú) and Spin by OXXO (Mex). In her current role, she is responsible for leading digital business with a focus on C, D, E in the pyramid segment (social economic segment).

In an insightful conversation with the Global Woman Leader Magazine, Florabel speaks about Fintech’s impact on traditional financial institutions. Talking about digital transformation, she stresses on ‘people’ being the key factor in the transformation process. Florabel also explains about the complexities of banking processes, drawing from her personal experiences.

Read out the article to know more.

In a market where fintech is blending into the daily fabric of life offering seamless services how should banks redefine themselves beyond just financial service providers?

Fintechs have entered the financial market with disruptive products and competitive strategies. They focus on retail channels as entry points for customers, and their lower operational costs allow for more competitive pricing. For an instance, offering a return on deposits, enables fintechs to be more competitive than traditional banks.

In contrast, traditional banks must transition from product providers to lifelong financial advisors, delivering personalized products, experiences, and pricing. This shift involves supporting customers from the beginning and throughout their lives, enhancing competitiveness with fintechs. Banks also need to prioritize digital processes, leveraging technology as a standard tool to streamline operations.

With the pace of innovation outstripping regulation, what unconventional strategies can banks employ to ensure they lead innovation, without getting bogged down by compliance issues?

Banks and financial institutions must strictly comply with regulations. However, technological advancements and industry developments in other regions often outpace regulatory frameworks, creating a significant challenge for disruptive progress. Banks should adopt a proactive stance toward new solutions inspired by emerging technologies. This involves dedicating time and resources to innovation, exploring MVP (Minimum Viable Product) concepts that can be tested, scaled, and refined as necessary. Rather than waiting for regulatory changes, banks should drive innovation and bring successful solutions to regulatory discussions for potential refinement.

A clear example is the emergence of fintechs, many of which started as tech companies offering financial products, prompting regulators to adapt. Banks should similarly commit resources to ongoing innovation, testing, and presenting viable solutions to regulators for review.

How can banks adopt technologies like predictive analytics or behavioural AI without crossing the line into overreach? What does the balance between being helpful and intrusive look like in the near future of banking?

These questions resonate with me. Previously, I mentioned that banks need to understand client needs and support them throughout their life cycle. Today, we have tools that predict what we want, how we want it, and when. For banks, it’s no different. Banks have extensive information on salaries, deposits, spending habits, channels used, and overall behavior. The key is to leverage this data to anticipate the client’s next move.

The technology needed includes Machine Learning and Artificial Intelligence. These tools help banks make strategic decisions. Using such technology should be essential for banks to stay competitive. It’s also about balance—listening to clients, taking constant feedback to understand limits, and knowing when to stop. Managing this data can be costly, especially for banks, as it can lead to issues like low conversions or customer churn, a common indicator in the banking industry. Ultimately, it’s about balancing personalization with avoiding intrusiveness.

Is it possible for banks to be truly agile when legacy systems still underpin their operations? How do you envision a parallel operating system within banks one that leverages legacy robustness while allowing innovation to thrive at the edges?

I strongly advocate for agility. To me, agility is not just about new processes or ways of operating but a mindset shift that underpins digital transformation. A mindset shift is the foundation of true transformation. One of agility's pillars is to think and act with flexibility, focusing on creating valuable, functional software and tools.

For a bank with years of experience and a robust operational core, adopting agility is challenging but achievable. The goal is to frequently develop functional products without disrupting operations or risking profitability. This must be done gradually and in parallel, so that over time, the new functional software becomes the bank's operational foundation, and agile processes spread across the organization with a client-centric focus.

The key to digital transformation is people. By putting the customer at the center and responding quickly to change, an organization can foster innovation and align goals within the transformation journey. In Mexico, finding this balance and constructing software that will eventually serve as the bank's foundation is essential.

With digital currencies and decentralized finance (DeFi) disrupting traditional banking, what should banks’ existential pivot look like if digital currencies achieve mainstream adoption?

We discussed how new technology offers opportunities for the financial industry, especially with digital currencies and decentralized finance, which can be an area for banks to explore. Currently, digital currencies are still new and volatile in terms of usage and value. However, as they mature and become part of the everyday economy, banks need to have a competitive proposal ready. Agile banks could pose a threat, so traditional banks must be prepared with their own strong offerings.

Structurally, this shift will certainly impact the balance in the financial industry. Once digital currencies become more stable, it will be essential to take this change seriously. In my opinion, the financial structure will need to adapt to these new options, which may lead to fluctuations in value. However, banks with diverse products should be able to manage and structure their offerings to cover these risks effectively.

How do you balance the need for highly complex digital systems with the human demand for simplicity and ease of use? Is this a solvable equation or an ongoing tension?

The complexity of banking processes and products is already a significant challenge today, especially in making them accessible and understandable for customers. Adding the daily complexities and technological diversity we face makes it even harder for banks to differentiate themselves. I believe this is a current challenge, not a future one, where design plays a crucial role in simplifying things.

The way to address this is straightforward: by actively listening to users to understand their expectations and needs. Through a cycle of continuous feedback, rapid testing, and agile adaptation, banks can move flexibly and achieve positive results. Putting the customer at the centre, understanding their expectations, and shaping products accordingly—including design, tone, and language—are essential steps in managing the complexity of banking and delivering a better experience.

Message For Readers

For leaders in this industry, the most valuable asset we have is our people. Achieving any business goal depends on having inspired and motivated individuals who understand and are aligned with our objectives. In a world full of challenges and rapid change, it’s essential for leaders to stay grounded, providing clear guidance and direction for their teams. Embracing change can be a powerful opportunity to enhance our processes and products. This requires an agile mindset that places people at the centre of everything we do, whether in teamwork, offering solutions, or adapting to new environments.