Banorte is using digital technology mainly to achieve hyper-personalization of its services to the customers:
Mexican Bank Banorte is one of the 4 largest commercial banks of the country by assets and loans, and the largest retirement fund administrator. The bank offers savings accounts, credit cards, payday loans, mortgages, commercial loans and auto loans. It is part of Grupo Financiero Banorte, which also has another branch, Ixe.
Banorte’s operations are unique, in that it has some 1200 branches, 7800 ATMs and 22 million customers countrywide and receives deposits through more than 5200 commercial establishments like drug stores, convenience stores and supermarkets.
OFFERING PERSONALIZED SERVICES
Banorte is known for its focus on identifying and implementing emerging technologies as part of its mission of hyper-personalization of its services. Its annual ICT spending was around $507 million in 2021. Way back in 2013, the bank concluded a10-year strategic agreement with IBM to create a new customer centric banking model. IBM has since helped the bank to implement big data and analytics technologies across its customer service channels and deliver personalized products and services. It has a standalone Analytics Business Unit, which aims to leverage data analytics to better understand customers and make informed business decisions.
The bank has an alliance with Google Cloud to use Google’s technology and migrate its infrastructure and workloads to Google Cloud. This has also helped the bank to make use of AI and large sets of data stored on Google Cloud, thereby supporting its customers with hyper-personalized banking services. Since 2021, the bank has used funds in improving communication functions, data center, network, applications, end-user computing and service desk.
INNOVATION CORE OF BIZ
The bank strongly believes that innovation is an essential part of its business, prioritizing customer satisfaction and experience. This goes hand in hand with operational efficiency. For example, the virtual assistant it has developed is an application for its internet banking, with plans to extend it to mobile apps as well. The virtual assistant uses AI to solve the main queries of the customers. It also provides information about the bank’s different products.
The bank has redesigned its credit approval process for consumers and SMEs, with the objective of fine-tuning its risk assessment while providing the system with functionalities that deliver an agile and personalized response to the clients. The redesigned version includes the introduction of multi-product sale, through a simulator, where the customer can configure his/her product package, the base growth for cross-selling campaigns, and a scheme of personalized rates, among other advantages.
It is also planning to launch a new system for credit line and internal and regulatory limits management, which provides information of a client’s total exposure, which will be used for periodical reviews, new line approval, and on-line monitoring of all provisions from Wholesale Banking.
VISION FOR USE OF AI
The bank has a Cognitive Competence Center, which develops the strategic vision of AI within the bank. The Center works on different concept and pilot tests, including a customer call analyzer to increase the sale of products, a cognitive corpus for employees together with HR and information on policies, procedures and document review for evaluation purposes.
The bank is carrying out pilots with new decision-making tools for risk and fraud assessment, which utilize unconventional mechanisms like online psychometric scores, email validation in an email bureau, ML techniques for approval models and graph analytics for transactions.
The bank’s API platform is designed to connect third parties for the development of digital experiences in a secure environment. It has also developed an Open Banking strategy to remain competitive and relevant.
The bank ultimately has a strategy of putting each and every individual customer at the center of its digital transformation. In the words of its Chairman Carlos Hank Gonzalez, the bank’s latest ‘1-2-3’ digitization strategy is about delivering high value, banking-in-minutes functions for its customers, and how Banorte is able to move closer to a hyper-personalization mode of promotion and service delivery.
He claims that the bank’s branches can now open personal accounts in just 15 minutes, 100% digitally, incorporating high-value functions and security for the customer. Besides, credit cards and mutual funds are available from the bank’s mobile app in a matter of minutes.
He adds that the bank will be working on 4 major technological bridges – the use of the cloud, AI, data and biometrics identification.
LAUNCHING DIGITAL BANK
The bank is now in the process of launching its digital bank, Bineo, which expects to have some 3 million customers. The neobank, which will operate independently of Banorte, will be 100% digital, initially offering financial services, including deposits, loans, payments, and transfers.
This article has been compiled based on publicly available information on the web, particularly the bank’s own website.