Consubanco | BBR - Brochure

Consubanco’s DIGITAL TRANSFORMATION

Partners:

Consubanco undergoes a digital transformation to offer customer-centered financial services as part of its competitive strategy

Consubanco becomes a financial environment growing its customer base and offering value through a better use of its tech resources and its strategic partners network displaying strength in the loan and credit segment. Through its digital transformation strategy, the bank seeks to maintain its leadership and conquer other segments

Produced by Jassen Pintado

Creative Direction Omar Rodríguez

Interviewees

Alfredo Flores, CEO for Grupo Consupago; Ing. Fidel Vargas Londoño, Associate Executive Director of Digital Transformation for Consubanco

PURCHASES AND TRANSACTIONS MADE EASY, TO THE BEAT OF THE 21ST CENTURY

Consubanco’s story is related to the Grupo Comercial Chedraui corporation -which also owns the Chedraui retail chain operating in Mexico-, dating back

with the Sherman Financial Group, the private equity global firm, whose affiliate companies enabled Consupago to operate in a large scale in the consumer financial industry, also creating Banco Fácil, which began operations in 2007, when Consupago was authorized to work as a Limited Purpose Financial Society (SOFOL, under Mexican regulations).

to 2001, when Sergio Chedraui created Consupago, with the purpose of being closer to customers, offering them retail financing, creating the “Paguitos” (small payments) credit system, and afterwards -thanks to his vision and understanding of the Mexican working class- he also began offering payrolldeductible loans with delegated collection, thus starting an industry that has contributed significantly to financial inclusion in Mexico.

In 2006, a partnership was struck

In 2012, Grupo Consupago (in charge of Consupago and Banco Fácil) acquired OPCIPRES (a SOFOM ENR, a Multiple Purpose Financial Society - Non-regulated Entity), an important player in the payroll loan business; and Banco Fácil became Consubanco, capitalizing Consupago’s assets, which consolidated and boosted both companies.

Consubanco became one of Mexico’s 500 most important companies in 2014, according to Expansión, an established Mexican business magazine and website. In

2017, Consubanco reached no. 13 among the “46 best banks”, from the Mundo Ejecutivo magazine. In 2019, the Bankaya platform was developed along with a group of successful entrepreneurs, aligned with the company’s efforts in digitization and growing its engagement products portfolio; and in 2020, Grupo Consupago started its inorganic

growth strategy by acquiring part of FAMSA bank’s liquidated portfolio, which was Financiera Independencia’s payroll loan operation as well as the beginning of apex financing to other qualified financial entities.

“The successful development of Grupo Consupago has been achieved as a result of a permanent surveillance of the market’s opportunities, driven to

- Alfredo Flores, CEO for Grupo Consupago

“What we have built during years -talent, processes, tech and business strategies-, has allowed us to keep being competitive”

develop a high-value bond for our customers,” commented Alfredo Flores Ibarrola, CEO for Grupo Consupago.

WIDE EXPERIENCE IN THE FINANCIAL AND CREDIT SERVICES INDUSTRY

Flores Ibarrola graduated as an Industrial and Systems Engineer from ITESM (Monterrey Institute of Technology and Higher Education, in Mexico), and afterwards he earned an MBA from IPADE (PanAmerican Institute for High Business Management, also in Mexico).

He has led Grupo Consupago for more than ten years and also takes part in the board of directors. He is in charge of a bank and three other financial institutions, all of them among the leaders in the payroll loan industry in Mexico.

Flores Ibarrola has been around for more than 25 years creating

enterprises and holding C-level positions in finance. In 2008 he created OPCIPRES, acquired by Grupo Consupago in 2012, and has since been in charge of the latter.

Flores Ibarrola is also a shareholder of other successful companies in the financial and insurance sector, as well as in the real estate business.

SIGNIFICANT ACHIEVEMENTS IN A SHORT TIME

In a short period of time, Consubanco has positioned itself as a solid, efficient entity towards its customership, after accomplishing synergies which have set a clear difference:

• Consubanco is the leading financial institution in the payroll loan business under the delegated collection scheme for retirees, pensioners and employees both in the public and private sectors, guaranteeing access and

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continuation to financial services for a population segment with little access to credit. Up to date, Grupo Consupago has opened credit lines to a population segment with little access to credit.

• It has become one of the banks with the best fixed-term investment offers, bringing customers the opportunity to increase their wealth safely with high-yield.

• Along its history, the bank has positioned itself as a properly capitalized institution with highliquidity indexes that have allowed for solid, significant growth of its assets since its founding.

KEY FACTORS TO SUCCESS

Consubanco grows and evolves according to solid principles resulting in a financial stability, complying with customers, partners and authorities.

Consubanco’s vision combines business and product strategies which have become a competitive advantage.

Permanent surveillance in the macroeconomic environment enables the bank to take the best decisions upon an ever-changing environment. Its shareholders and external consultant’s wide experience has become crucial to the group’s successful development.

“The payroll loan industry is going through a deep transformation, the demise of important players should push the urgence of regulations within the industry into the financial authorities’ agenda. There are relevant challenges about the organizations that should take part in such credit operations, improve the legal certainty of participants, but especially to improve user experience in this financial service. We perceive great opportunities to provide a better

“The main challenge for digital transformation isn’t technology, but rather creating empowerment and digital skills in individuals to solve business problems through technology”

- Fidel Vargas, Associate Executive Director of Digital Transformation for Consubanco

service to this market segment, and this is where our transformation strategy is set,” Flores Ibarrola pointed out.

DIGITAL TRANSFORMATION FOCUSED ON CUSTOMER SATISFACTION

Consubanco began its digital transformation journey looking forward to delivering customized offers to its customers, resulting in a high value engagement through a deep knowledge of their needs, customs and behavior. This brought the decision to invest in optimizing tech infrastructure, in process and operation reconfiguring through a continual improvement program known as “SOAR” (which in Spanish stands for simplifying, optimizing, automation and enabling profitability) and launching a new company culture allowing such deep changes within the organization. The evolution of the digital

transformation will allow to keep key differentiators to maintain a leadership in the loans segment in which the brand has built prestige, and also in the creation of a financial products and services environment in which customers are able to interact in a dynamic and friendly way, finding a wholesome offer according to their needs.

This transformation is designed from the relaunching of the company’s vision, mission and values, and comes along with the deployment of a new streamline work methodology, which allows a proper alignment in the execution of set goals.

“I would summarize the success we have accomplished in our capacity to foresee change and our rapid adaptation to it. Our personnel’s talent has been essential in this journey,” commented Fidel Vargas, Associate Executive Director of Digital Transformation for Consubanco.

On the staff’s front, the transformation at Consubanco empowered employees, enabling them to develop up to their potential and placing them in the best position to successfully accomplish the tasks that result in the company reaching its goals.

The key aspects for Consubanco to work on, regarding recent technology are:

• Agility in processes

• Data analytics

• Journey to Cloud

• Tech evolution and modernization Vargas, originally from Colombia, arrived in Mexico to lead the bank’s digital transformation. The Bogotaborn computing and systems engineer is a specialist in software development and earned a master’s degree in IT architecture from Colombia’s University of The Andes. He’s widely experienced in digital transformation

and tech, having taken part in the transformation of important initiatives from the government in Colombia, as well as in companies such as Banco Falabella, Oracle and his recent experience in finance as Director of Strategy, Architecture and Tech Innovation in Grupo Bancolombia, Colombia’s largest financial group. Fidel Vargas arrived at Consubanco after his tenure in a startup with expertise on fidelity development systems to lead tech, analytic capabilities and bank operations.

THE VALUE OF ANALYTICS

Getting to know every customer becomes more valuable every day in every industry, and Consubanco is no exception.

In the company, decisions are taken based on data, which means analytics allows the creation and development of new relationship strategies with customers. Every

“Our plans are centered in our capability to deliver a higher value to our customers not only from a financial perspective, but also within the transformation of their lifestyle and helping them day-in and day-out”

- Alfredo Flores Ibarrola, CEO for Grupo Consupago

interaction is taken as an opportunity for the bank to get to know more about a customer, in a way that the bank can foresee their needs.

Some time ago the Datahub was deployed, and it became an essential resource for Consubanco. Datahub analyzes behaviors and validates value hypotheses in different fronts, such as experience and knowledge about a customer, operational

excellence, finance, cybersecurity and fraud, and compliance.

Even when these cover different aspects, they share data and models that offer larger support in decisionmaking,” Vargas added.

CONTRIBUTING PARTNERS

The structures enabling Consubanco to offer excellent financial services and products as it grows a customer

Mexican company founded in 2006 with the vision of improving the customer experience, preventing fraud and reducing operating costs, through the integration of innovative technologies

KOALA VSP PLATFORM

• Facial, fingerprint and voice biometrics

• Liveness check

• Digital signature and digital stamp (NOM-151) with legal validity

• Implementation on-premises, or in the cloud

• Mobile applications and BPO

“I

- Fidel Vargas, Associate Executive Director of Digital Transformation for Consubanco

would summarize the success we have accomplished in our capacity to foresee change and our rapid adaptation to it. Our personnel’s talent has been essential in this journey”

portfolio are a result, in a large scale, of the work of different strategic partners that provide different resources to develop solutions.

As a solid organization, Consubanco maintains the same high reputation with partners and purveyors as it does with customers, through clear and transparent agreements.

“Every area in the bank is concerned about our efficiency, competitiveness, being solid and maintaining a good

relationship with partners and purveyors,” Flores Ibarrola remarked.

ALIGNED TO PROVIDE A BETTER USER EXPERIENCE

After exponential growth during 2020 and 2021, Consubanco aims to boost its environment through the synergies created mainly with the Chedraui retail chain and the Bankaya app, as with other business lines and companies.

Consubanco’s focus remains in

placing the customer at the center of operations to sustain its growth, retention and profitability.

“Our plans are centered in our capability to deliver a higher value to our customers not only from a financial perspective, but also within the transformation of their lifestyle and helping them day-in and day-out”, finalized Alfredo Flores Ibarrola, CEO for Grupo Consupago.

FOUNDED: 2007 as Banco Fácil

INDUSTRY: Finance, loans and credit

CONTACT:

www.consubanco.com

afloresi@consubanco.com

fvargas@consubanco.com