Financial Revolution: AI and Open Finance Transforming the Sector


Discover how market leaders are leveraging AI and Open Finance to drive innovation and competitiveness. 

Despite the macroeconomic challenges in Latin America, the region is recognized as fertile ground for resilience and innovation. Leading companies are focused on modernizing infrastructure, creating personalized data-driven offerings, and transforming operations to stay competitive. 

In this context, Artificial Intelligence (AI) and Open Banking emerge as fundamental elements for business transformation in the financial sector. According to the new edition of the 2023 Innovation Index, prepared by Visa and released this year, AI and Open Finance technologies will be priorities for market leaders in Latin America over the next two years. 

The research shows that 75% of the 122 leading companies surveyed in the region recognize AI and Open Finance as key drivers in transforming their businesses. Most of these companies also identify generative AI as the ideal technology for innovation, maintaining competitiveness, and growth. 

Among the companies surveyed about AI practices, it is observed that the technology is widely used mainly for automating customer service and preventing fraud. This widespread adoption reflects the importance of AI in improving operational efficiency and offering personalized, low-cost, data-based services. 

Open Finance, meanwhile, is driving new and personalized products through the connection and sharing of data in the financial system. Data categorization and system expansion stages were achieved by 75% of the surveyed companies, with Brazil leading the area and reaching 5 million connected accounts, while other countries like Colombia, Mexico, Argentina, and Peru are also making progress in this direction. 

As Artificial Intelligence (AI) and Open Finance become fundamental pillars of digital transformation in the financial sector of Latin America, the benefits these technologies provide are increasingly evident and promising. Among the key benefits are: 

1. Service Personalization: AI allows financial institutions to better understand individual customer needs and offer personalized services according to their financial profiles and behaviors. This not only increases customer satisfaction but also strengthens brand loyalty. 

2. Fraud Prevention: AI’s ability to analyze large volumes of data in real-time enables early detection of suspicious activities and prevention of financial fraud, providing greater security for both financial institutions and their customers. 

3. Operational Efficiency: Automating processes through AI significantly reduces the time and costs associated with financial operations, such as loan approvals, risk analysis, and transaction processing. This allows companies to be more agile and efficient in their daily operations. 

4. Data-Driven Decision Making: AI empowers financial institutions to make more informed and strategic decisions, based on predictive analytics and actionable insights from large data sets. This helps to mitigate risks, identify growth opportunities, and optimize overall business performance. 

5. New Business Models: Open Finance opens doors to new business models and partnerships between financial institutions and tech companies, enabling the offering of innovative products and services that meet specific customer needs. 

6. Financial Inclusion: Through secure sharing of financial data, Open Finance can help promote financial inclusion, enabling access to banking services and financial products for populations previously excluded from the traditional financial system. 

7. Competitiveness and Growth: Companies that adopt AI and Open Finance are uniquely positioned to stand out in an increasingly competitive market. By offering more efficient, personalized, and innovative services, these companies can capture a larger market share and drive their growth. 

The combination of AI and Open Finance is revolutionizing how financial institutions operate and interact with their clients. These technologies not only offer tangible benefits in the present but also promise to radically transform the financial sector, unlocking a new world of possibilities and opportunities for businesses and consumers in Latin America and beyond. 

Innovation is flourishing with the advancement of transformative technologies, ready to deliver unparalleled value to both established companies and new market entrants. N5 is embedded in this context, ready to help financial institutions digitally transform with simplicity and agility. 

N5 Now is designed exclusively for the financial sector and natively adapted for the world of Open Finance. Moreover, our expertise in this market enables us to anticipate trends and develop unique solutions using AI. This allows us to help companies solve real-world problems, increase their efficiency and competitiveness, and explore new business opportunities in an era of accelerated digital transformation. 

Discover how we can help elevate your company to the next level, speak with one of our specialists today.  

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