Digital transformation in Latin America’s financial sector is no longer a promise; it’s an urgent necessity. In a recent panel organized by Kyndryl, a global technology services firm, and IDC, a consulting company specializing in market analysis, the main trends and challenges faced by banks, insurers, and capital operators in Argentina, Chile, Colombia, and Peru were discussed. The conclusion is clear: organizations that do not accelerate their digitalization risk falling behind in an increasingly competitive, automated, and demanding market.
AI is being leveraged for automation, but cautiously. Daniel Povis, IDC Latam’s IT Services Manager, stated, “Companies are adopting AI, yes, but many are still in pilot stages. Technological maturity hasn’t reached the sector’s average.” IDC highlights that AI solutions are beginning to automate processes, reduce human error, and minimize financial risks. However, the transition to production remains limited, partly due to a lack of internal technical skills to sustain long-term developments.
Rodolfo Armellini, Kyndryl’s General Director for Southwest Latin America, emphasized that many projects fail due to insufficient investment in training and talent. “The main barrier isn’t budget—it’s the lack of skills to operate and evolve the implemented technology,” he said.
Hybrid models continue to dominate, combining on-premise setups with cloud solutions, often driven by regulatory and security concerns, as well as the need to maintain legacy applications. Nevertheless, the cloud-first approach is gaining traction, propelled by the need to scale, reduce costs, and speed up time-to-market.
Application modernization is emerging as a strategic priority. “Modernizing is no longer optional; it’s the only way to meet new market demands and regulatory requirements,” noted Juan Olier from Kyndryl’s consulting team.
The pandemic accelerated real-time payment systems, shifting them from aspiration to customer demand. IDC reports the financial sector has made significant progress integrating platforms that enable instant settlement between institutions and customers. Blockchain technology is also gaining ground in capital markets—not as a trend but as a solution to traceability and transparency issues in transactions. Although still in early stages, blockchain is seen as a crucial future investment.
Cybersecurity remains an intermittent priority. Despite rising cyberattacks, cybersecurity doesn’t always stay at the top of executive agendas unless a media incident raises alarms. “It’s a priority that fluctuates depending on the current scare. We need structural maturity in this area,” Povis cautioned.
The sector is beginning to incorporate customer platforms with robust data governance and quality frameworks to personalize services and reduce risks. Omnichannel strategies are also becoming standard, with clients demanding seamless transitions between digital and physical channels.
Regionally, IDC highlights specific priorities: Peru emphasizes operational efficiency and talent attraction, Chile is an early adopter with a focus on data-driven management, Argentina is investing in data use and generative AI, and Colombia prioritizes data security and privacy. In Peru, 51.3% of financial companies focus on increasing productivity through technological investments, followed by data privacy (41%) and digital talent retention (33.3%). Looking ahead to 2025, perceptions show continued emphasis on cloud security, data analytics, process automation, and AI, among others.
The real challenge lies in leadership and business vision. Olier points out that modernization is not just a technical issue but a cultural and organizational one. “Without executive leadership involvement, many projects fail to deliver value,” he said. Kyndryl recommends a three-phase approach: Run (current management), Transform (change process), and Run again (operate the new model). Success depends not only on adopting solutions but on operating, scaling, and adapting them with a long-term strategy.
In conclusion, Latin America’s financial sector faces a technological crossroads. With AI, automation, and cloud as key drivers, success hinges on aligning talent, leadership, and strategy—beyond mere investment—to thrive in an increasingly competitive, regulated, and digital landscape.