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MeneameChilean banks should become financial services providers instead of relying to heavily on the traditional business of loans and deposits, Chile's Association of Private Banks general manager Alejandro Alarcon told BNamericas.com.
Today banks depend on spreads for their income, but through a greater focus on financial services - insurance and asset management - they can diversify their source of income to include commissions on services, Alarcon said.
Chilean banks already have the infrastructure and human resources to provide financial services.
Bear Sterns Latin American banking analyst Jason Molin told BNamericas.com that the two financial services areas with the best growth potential are insurance and asset management.
While Molin agrees with Alarcon that the banks should exploit the advantages of providing financial services, he still sees room for further growth of the traditional business of loans and deposits. Chilean banks can still realize decent spreads despite an increasingly competitive environment, he added.
Molin also sees a clear trend of "one-stop-shopping" in Latin America, where one financial institution provides all the banking and financial products and services that its clients demand.
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