I came across this interesting and well-written post from Ravi Venkatesan, the Chairman of the Bank of Baroda and former Chairman of Microsoft India, in which he talks about how fin-tech startups are poised to dramatically impact the banking sector. He goes further to explain that the effect will be MORE pronounced in India due to long history of banking industry corruption and inefficiency. This got me thinking about Mexico and its banking sector.
In the past couple of decades the banking sector in Mexico has been posting banner profits –
A show of hands, dear Mexican reader, who has a positive impression of their bank? When I moved from the US to Mexico 10 years ago I was flabbergasted by just how cumbersome, expensive, and generally behind-the-times banks were here compared to the rest of the world. I remember being stunned to find out that, rather than earning interest, I would be paying the bank to keep my money there? When I did finally decide to open an account – the process took forever. Dozens of documents, 7 or 8 in-person visits, we had to restart twice because someone had made a mistake on an interoffice form – just cartoonishly bad.
When I finally did get the account set up, the online tools that were available to manage the account were horrible. Screen after incomprehensible screen, connected by some diabolical logic, that turned a simple transfer into a half day of trial and error frustration.
There was either no online functionality at all or the services that they did offer were just unusable.
While at the same time, the banking sector in Mexico has been posting banner profits
. I remember bringing my phrase book to the bank – surely it was a language problem. Surely they weren’t suggested that they would be charging me to keep my money there.
Mexican banks have posted record profits –