In her opinion, banking transformation will come with the help of Blockchain technology, Behavioral Design, and Behavioral Finance. Keep reading to discover how they apply these concepts in their developments!
The midpoint of the interview found Juanjo highlighting the possibilities for digitalization and banking in Latin America, with nearly 40% of the population lacking access to banking services1. Natalia agreed and pointed out that half of the banked population only uses their accounts to withdraw subsidies or pensions, so banks have little data on them, making it difficult to offer them other products, like credit or investment.
Both agreed that this topic could warrant another interview and moved on to discussing the synergies between traditional banks, Lulo Bank, and Lulo X. Natalia explained that their collaboration allows them to have one of the largest ATM networks in the country, managed by Servibanca, as well as work with GNB Sudameris, an institution with 100 years of history.
“Data helps us understand banking user behavior“
“We’ve attracted traditional banks toward new business models to create a new generation of banking in Colombia.” What they are aiming for is to create a one-stop-shop based on customer data that offers a unique user experience. “We want to help them in a more personal, more targeted way. I can give you advice because I know you, and from the app, I can make a bigger impact.”
Natalia Jiménez Aristizabal,“It’s essential to form diverse teams to work closely together. Challenging each other makes the solution development highly data-driven.”
CEO at Lulo X.
For them, sharing these data (in an anonymized form) with the group helps complete the construction of this one-stop-shop, which was launched earlier this year. What they aim to do is optimize resources and organize their portfolio by layers, like a video game. A user starts by opening an account at Lulo Bank and, over time, ends up investing in digital dollars at Lulo X.
Moreover, the products are complementary and do not cannibalize each other. Our Head of Marketing then mentioned the high acquisition costs the sector faces. The CEO nodded and mentioned the strategies they use to increase the average monthly revenue per user, thanks to the joint efforts of both companies.
The promising future of Lulo X: Disruptive projects and Blockchain technology
It was then time to learn more about the upcoming developments Natalia and her team have planned for the next months. The executive mentioned that Blockchain technology will allow them to offer users a variety of stable digital currencies, as well as other popular cryptos.
All of this with an associated payment method: the multi-rail card, which allows users to pay with their chosen currency. They are also exploring crypto treasury to increase user profits and create a revenue stream for the business. This involves entering the DeFi (Decentralized Finance) world and understanding how to operate securely within this environment.
Building the future of banking in Colombia
Natalia told us that they are also exploring the possibility of launching products and services that complement the existing ones. For instance, USD payments for people working in Colombia for the USA. IT professionals often face challenges in this area, and they are looking for partners already offering this service to extend it to as many people as possible.
Other future features will likely include salary advances, payroll loans, credit products, or the use of GenAI in banking. Process automation will benefit from artificial intelligence to scale more efficiently. The goal is to continue providing that hyper-personalized service they dreamed of for their users from the start.
A unique experience for every user thanks to the Design System and diverse teams
Juanjo then encouraged all Colombians to download the app. Natalia, laughing, excitedly explained how Lulo X’s generative interface would work. Thanks to the great work of their Design Lead, Camilo Flórez, they aim to show each user what they really like, adapting their customer experience to unprecedented levels.
She explained that minimizing the entry barrier to the app through the Design System helped them overcome their own biases as creators. “It’s essential to form diverse teams to work closely together. Challenging each other makes the solution development highly data-driven.” The CEO of Lulo X emphasized that making mistakes is key to progressing.
💡 Natalia Jimenez said…
“Companies like Coinscrap help educate through the product, and there’s no more successful way to do that. Many times, people want to change for the better but don’t know how. That’s where banking data comes in as an input for better financial decision-making.”
Usability of financial platforms: The secret of neobanks in LatAm
She took the idea of trial and error to share an anecdote: At the beginning, the “X” in their logo (inspired by exponentiality) was interpreted by users as a close option, something very common in apps and websites. Usability maps showed that many people were clicking on it, which helped them improve their interface.
Their team is clear that the product is never fully finished. “We fall in love with the problem, not the solution, because solutions inevitably change.” Being attentive to usage conditions and the market situation is their secret to continue growing.
Our Marketing Director then wanted to know her opinion on the future of banking in Latin America. Our guest assured us that traditional institutions should improve existing solutions because “they are not really helping the population.” She insisted on the importance of “connect and collaborate,” since the specialization of Fintech is very high and adds significant value.
Allies for financial innovation: The path to hyper-personalization
“We love that new competitors are coming because it means a greater democratization of financial services.” The disruptive force for constant innovation and non-conformity is huge. Banks can leverage available knowledge and technology to advance their own digitalization process, according to Natalia.
The executive reiterated the need to focus on people, listen to them, and provide social value. She mentioned the urge to create a clear strategy as a startup to define what can and cannot be done regarding competition. In this regard, calculating the opportunity cost of the chosen options is a basic exercise.
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Financial education and personalized advice as pillars of change
Natalia took the opportunity to explain that there is a lot of misinformation regarding methodologies like Design Thinking or technologies like Blockchain, which are a means and not an end. “You need to understand who the user is, what they need, and how our products will positively impact their lives to achieve success.”
“Sometimes people don’t seek anything sophisticated, they just want to maximize the value of their money or manage their finances better.” Market insights help them identify problems to solve and make better decisions as a company. The challenge in Latin America, in Natalia’s words, is financial education, and she assures: “Digitalization provides the tools to increase it.”
Personalized financial advisory services by institutions address the lack of financial education in schools. “By deeply understanding people, we can help them build healthy habits.” Natalia mentioned the need to apply behavioral economics and personalized incentives to accompany users on their path to financial empowerment.
Juanjo agreed and encouraged more companies to contribute their part to improve the financial situation of the population. To close, he thanked Natalia for dedicating her time, and she concluded with a recommendation: “It’s important not to settle for what doesn’t work well, try us!”
1 According to the latest data from the World Bank (Global Financial Inclusion Database 2021-2023).
