“There are still digitally underdeveloped financial institutions”

Interview to Vida Económica

The pandemic speeded up the use of technology by the customers and the financial sector’s digital transformation. The majority of the institutions were forced to react and, according to Renato Oliveira (ebankIT CEO), there are a few exceptions. “It is no longer the standard, but some financial institutions have very underdeveloped digital processes and had to build a digital plan in a short time. It is a great opportunity for Fintechs and traditional players to build valuable partnerships. It’s not a question of who comes first. The point is to embrace the moment to offer the best digital service, retaining the customers and attracting new ones.”

The pandemic speeded up the financial sector digital transformation?

It was a catalyst for digital evolution. Consumers needed to access financial services remotely - technology played a leading role, the digital transformation in the sector accelerated. Now, the financial institutions are trying to respond to customers' needs, and the quality of the platforms is a key factor. These points are always considered as the basis of the ebankIT platform development.

For the consumers, transaction security is no longer an issue?

The fear didn’t disappear but the lack of alternatives during the pandemic prompted consumers to explore digital banking. During the confinement, payments, orders, and access to services had to be digital despite many Portuguese still not used to it. The security never ceased to be a concern and remains a decisive factor to the customers. That is why we need to ensure that consumer protection and anti-fraud systems are always updated.

In the technological process, do you think traditional banks took a while to respond to fintechs?

Although it is no longer the standard, some financial institutions have very underdeveloped digital processes and had to build a digital offering in a short time. It is a great opportunity for Fintechs and traditional build valuable partnerships. It’s no longer a question of who comes first. 

Was this process slower in Portugal?

I believe that each country has its own pace. In recent years, the digital transformation of banking gained strength in Portugal and has now - as in other countries – the “confinement boost.”

In a country where the average standard of living is relatively low, do the prices of online transactions hamper the adoption of digital banking operations?

What we experienced earlier this year revealed all the problems arising from access to technologies - with the remote school, for example. It is undeniable that access to technologies is not equal for all. We guide the development of the ebankIT Digital Platform for quality, security, and accessibility, contributing to the financial sector's digital transformation speed up.

On the other hand, do you think fintechs' mission is effortless, compared to traditional banking, once they have lighter structures and start from scratch?

Fintech have clear advantages and disadvantages compared to traditional banking. The ability to change their processes in a more agile way, thanks to their size and the existence of less regulation, makes them able to respond faster. Fintechs offer what the consumer is looking for; faster, agile, and simpler processes that can be accessed everywhere.

Oncoming, do banks have a stronger image capital that fintech didn't conquer yet?

Definitely! Banks have a colossal legacy system that communicates confidence and security to the customers. Fintechs are still an unknown concept for many Portuguese and, although they often work together with traditional banks, they do not share the same reputation. Due to the current context, Fintechs, because of their digital channels, gained prominence. I believe that it will be increasingly possible to look at fintech as an asset, especially after this period. The transition from physical to digital will make people realize the advantages of using digital channels.

Online shopping is a growing process. Also, the type of goods purchased is changing - even for online purchases of higher value such as motor vehicles. Is that the way?

In the beginning, this was a necessity of utmost importance for preventing the spread of the virus. I believe that with the return to "normality," people will continue to do more things online. Regarding the type of goods purchased, if it works and you are interested, why not?

On the other hand, with digitalization and remote processes, are we at risk of forgetting people?

No. People are the foundation of any organization and service - made from people to people, nobody can forget this. It is undeniable, and this is something that already happens, that remote work ends up creating a physical distance, but, fortunately, there are several ways to be close. With countless work and communication platforms, we can be together at a distance. At ebankIT, we maintained actions for the entire team: online gym classes, workshops, everything to get the closest contact possible.