- Alejandro Valenzuela, Chairman of the Board of Banco Azteca, shares his vision on the role of this traditional bank, a leader in the Mexican market.
- Technologies, regulation, and financial inclusion, among other topics.
- He was one of the prominent speakers at the Fintech Summit Latam.
Alejandro Valenzuela is an economist and, since 2015, he served as the CEO of Banco Azteca, a well-known institution recognized for its extensive network of branches in Mexico. Since February of this year, he has been the new Chairman of the Board of the institution. With a solid career spanning over 30 years in the banking industry, Valenzuela has stood out for leading innovative strategies and promoting a vision of accessible and customer-centric banking. In this interview with Frecuencia Money, he shares his perspective on digital transformation, Open Banking, financial inclusion, the “Figital” strategy, and many other topics.
Frecuencia Money: What is Banco Azteca’s current growth strategy, and how does the institution plan to remain competitive in the ever-changing Mexican market?
Alejandro Valenzuela: Given the characteristics of the market we serve, we continue to focus on maintaining a strong physical presence through our branch network—the largest private network in the country—strengthened by the convenience and accessibility of digital tools.
We call this strategy “Figital” (physical and digital). Many of our branches are located in places where other banks don’t reach, so our digital services make it even easier to access each of our offerings.
Frecuencia Money: The physical branch remains vital in countries like Mexico…
Alejandro Valenzuela: We aim for each transaction and loan to be processed quickly, securely, and in a personalized manner. We adapt to customers who prefer a digital approach, without forgetting those who still seek the convenience of human, personalized service in the branch.
TECHNOLOGIES
Frecuencia Money: What technological innovations are currently under development or being implemented?
Alejandro Valenzuela: In the field of artificial intelligence, for example, we have been able to streamline hundreds of procedures and internal administrative processes. This has reduced response times to customers from hours to minutes, and in some cases, from days to just a few hours.
Frecuencia Money: And what about security?
Alejandro Valenzuela: We’ve also made advancements in biometric security to facilitate a personalized user experience and offer a higher level of security with each transaction, using the customer’s fingerprint and face recognition.
THE MEXICAN MARKET
Frecuencia Money: How would you describe the progress of Open Banking in Mexico? Are there missing regulations? How would greater implementation of Open Banking impact the sector?
Alejandro Valenzuela: Open Banking has great potential to further democratize financial services, but we need a robust framework to allow for the secure exchange of information. This would bring more transparency and competition, which we see as an opportunity for customers to compare options and choose the best one.
Frecuencia Money: The Mexican consumer has a large number of offerings from non-traditional financial providers. How do you attract young people?
Alejandro Valenzuela: The difference lies in reach and stability. Banco Azteca combines digital innovation with security and experience. This allows us to adapt to the needs of young people, who are looking for an agile experience without compromising security or coverage. The key is to provide them with tools that fit their daily life, whether through our app or in our branches.
FINANCIAL HEALTH / INCLUSION / SUSTAINABILITY
Frecuencia Money: Recently, you stated that large banks are not interested in financial inclusion. From your perspective, should companies take on a responsibility for social impact?
Alejandro Valenzuela: For Banco Azteca, financial inclusion is a mission, not a complement to our strategy. I believe that banking in Mexico still owes a great deal to the population because it has not been able to increase the levels of bank penetration to the degree the country needs. It’s not about taking on a quota, but rather about the banking sector intensifying its efforts.
We work to make it easy for everyone to access financial services, bringing banking closer to Mexicans who, due to lack of credit history, inability to prove income, or lack of formal employment, were previously excluded from traditional banking services.
Frecuencia Money: Financial health is a hot topic in the industry right now. How are banks, in general, and Banco Azteca, in particular, collaborating on this issue?
Alejandro Valenzuela: Our clients’ financial health has become a key element, not only to help them build a good credit history but also to allow them to continue growing in their relationship with banking and increase their growth opportunities. For example, we often say that we take care of our customers when granting them credit, as we take the time to evaluate—together with them—their repayment capacity, the relevance of their other debts, etc., always ensuring that the credit amount aligns with their repayment capacity without compromising other financial obligations. We rely on cutting-edge technology to offer solutions that not only speed up banking but also provide freedom and control over our money.
Frecuencia Money: What social responsibility and sustainability initiatives is Banco Azteca currently carrying out?
Alejandro Valenzuela: We seek to contribute to the development of sustainable and prosperous communities. Through Fundación Azteca, we promote projects in education, culture, and healthcare.
Frecuencia Money: What specific programs has Banco Azteca implemented to promote financial education among its customers? Can the results be measured?
Alejandro Valenzuela: Banco Azteca promotes financial education through the “Aprende y Crece” program, which reached over 1.5 million people in 2023 through various platforms and formats. This program promotes essential personal finance knowledge through a combination of in-person workshops, e-learning, and digital content, achieving notable effectiveness: 86% of users who enter a module complete it successfully.
“Providing detailed information, explaining, and advising our customers allows us to maintain leadership in financial inclusion and offer a complete banking experience based on our vision of building a bank for everyone.”
Frecuencia Money: Gender gap—do you have specific policies regarding this?
Alejandro Valenzuela: We are committed to reducing the gender gap with initiatives that make it easier for women to access financial products and services, such as the Cuenta Somos. This product is designed to provide women with financial security and accessibility in an environment that responds to their needs. This product is an example of our inclusive approach, aimed at empowering women and fostering their economic freedom and autonomy.
Frecuencia Money: Banks versus fintech: competition or collaboration?
Alejandro Valenzuela: Both. There is no doubt that fintechs have brought agility and fresh options to the industry from approaches that traditional banking had not explored enough. Some of them have been able to pay closer attention to the needs of financial service users, offering them a wide variety of options, many of which are immediate and more flexible.
The best path is collaboration, although competition is welcome, considering that it is the driving force that forces us to improve more quickly.
What is certain is that the financial system will continue its transformation, and in the future, we will see a different type of banking that offers its services “embedded” in the offerings of other market participants. What will matter will not be the bank itself, but the experience it facilitates: the true solution to the desires and needs of the customer.