In an interview with It Sitio, our CEO discussed technological entropy, the challenges fintechs face, and what truly matters when transforming the financial system.
In a recent appearance on the Next program, aired on Canal Ahora Play, Julián Colombo, CEO of N5, delivered a candid and insightful analysis of the behind-the-scenes challenges of financial innovation. With accessible language and real-world examples, he offered a perspective that blends technical depth with pragmatic and human-centered thinking.
Watch the full interview:
Key Insights from the Conversation
The Hidden Entropy of Banking Technology
One of the central ideas Julián discussed is technological entropy—a concept that helps explain why large financial institutions, even with vast resources, struggle to innovate. Banks, he explained, often operate with over 70,000 active software systems. The result? Around 91% of their tech budget goes toward simply keeping existing systems running.
This complexity makes innovation in banking comparable to “changing the wings of an airplane mid-flight.” It’s not just a technical issue—it involves organizational culture, regulatory pressures, and internal bureaucracy.
The Strategic Role of Ownership
Another powerful insight focused on the importance of ownership structures in financial companies. Julián pointed out that the type of investor or shareholder behind a company directly shapes how it operates. While fintechs may take bold risks for growth, traditional banks tend to serve investors who value stability and predictability.
Putting the Customer at the Center—Genuinely
Drawing from his background as an economist, entrepreneur, and executive, Julián emphasized that customer-centricity is the only sustainable path forward.
He explained that the real challenge isn’t outperforming the competition, but earning customers’ trust and preference every single day. “You’re not just competing with other banks—you’re competing with every possible use of that person’s money,” he noted.
Coherent Innovation: The N5 Approach
Julián concluded by explaining how N5 addresses these challenges head-on: by reducing entropy through a unified, modular platform. Instead of relying on scattered tools, N5 offers five integrated components:
CRM (for customer relationships)
SPM (for employee performance)
BPM (for product and service workflows)
OCM (for channels)
EDA (for data infrastructure)
This integrated architecture allows financial institutions to innovate without sacrificing efficiency, scalability, or compliance.
