The challenge is no longer whether to adopt AI, but how to do it.
The implementation of AI in the banking and insurance sectors is particularly challenging. Pains, obstacles, and delays can discourage the drive for innovation that modern times demand. Here, we take a closer look at the current state of affairs in the Chilean banking and financial system.
Chile leads in Latin America in many Digital Banking indicators, with more than 24 million digital customers and sustained growth in electronic transactions. But this technological advance coexists with significant challenges: complex migrations, security risks, digital divides, technological dependence, and internal resistance.
This note explores the most common pains and how entities can face them to make modernization really work.
Chilean digital panorama: progress and relevant numbers
At the end of October 2023, the Chilean banking system had more than 24.3 million digital customers, which implied a growth of 11.7% in one year.
According to CIEDESS, transfers between people (digital transactions) climbed almost 30% in that period, exceeding US$ 39,100 million in total amounts transferred.
Between November 2023 and October 2024, total banking transactions in Chile reached US$ 195,000 million, representing a real growth of 7.8%.
Electronic Funds Transfers (EFT) grew 16.9%; Card payments grew 5.7% (credit) and 5.4% (debit).
According to the Digital Banking Maturity study, Chilean banks have improved digital functionalities (apps, integrated products) but still have gaps in critical stages of the financial cycle (customer onboarding, relationship closure) compared to the global average.
Although Chile is well positioned in financial digitalization, the country still faces challenges in inclusion (especially for older adults) and in ensuring that the entire population uses digital services with confidence.
These data show that the digital transformation of banking in Chile is not a promise for the future: it is already part of reality. But this progress is not without friction.
The most frequent pains when modernizing banking in Chile
- Data migration: the most vulnerable critical phase
The transfer of customer histories, past operations, accounts and products is a delicate operation. In practice, duplicates, inconsistent fields, or poorly defined mappings appear, which can leave the new system with unreliable or useless data.
- Integration with legacy systems and rigid architecture
Many entities maintain old platforms (core banking, isolated modules, data silos). Incorporating new technologies requires the development of bridges or adapters that often become points of failure or high maintenance.
- Security, regulation and digital trust
In Chile, the authorities have advanced regulations to regulate fintech and digital financial services.
A recent change generated controversy: the CMF decided to eliminate coordinate cards for authentication, a measure rejected by sectors that accused not considering the digital divide, especially among older adults.
These episodes show that safety or innovation cannot ignore inclusion.
- Cultural resistance and weak adoption
A system may be technically flawless, but if users (employees, managers, operators) do not trust or understand its use, it will be partially wasted. The key: training, internal communication and accompaniment.
- High cost and return that takes time to be seen
Investments in licensing, infrastructure, consulting, and training are strong. But the benefits—reduced operating costs, efficiency, new products—often materialize over time. During this period, internal tensions, questioning or retraction may arise.
- Vendor Dependency and Technical Debt
If the entity cannot make changes without going to the vendor, it is trapped (“vendor lock-in”). If the quality of the software is not also controlled (refactoring, maintenance), the system can deteriorate over time.
- Regional digital divide: those who do not use digital
Not all customers are ready to use digital banking. Older adults, rural areas, people with less digital education tend to be left behind. If entities do not take care of inclusion, modernization can increase inequalities.
How to ensure transformation works
Start with controlled pilots or gradual launches by products or segments.
Perform migration trials with real data in test environments and have strong rollback plans.
Include change management from the beginning: training, communication and internal ambassadors.
Implement rigid governance: management committee, change control, risk monitoring.
Design modular architecture and well-defined APIs, which allow modules to be extended or replaced without redoing everything.
Integrate security, privacy, and compliance standards by design, not as patches.
Monitor the system 24/7, have a rapid response team and maintain roadmaps of continuous improvements.
Invest in digital financial education and inclusion: specific programs for older adults and less connected areas.
