The revolution of financial technology companies, better known as “fintech”, is here to stay. Its incorporation into the market has radically changed the way we manage our money, administer accounting, request a loan, invest and even pay off our debts.
To measure its impact, let’s see the panorama at the national level
Mexico is the second largest fintech ecosystem in Latin America with 334 startups. This figure is only surpassed by Brazil with 377 companies. In addition, the market in our country exceeds 540,000 active users and have granted more than one billion pesos in credits.
One of the main advantages that the fintech sector offers to entrepreneurs is the possibility of growing inside and outside your “native” country at a much faster rate than that of traditional financial institutions. To illustrate this, Banco Santander has its origins in the mid-1800s, and it took almost 100 years to expand into the Americas. In contrast, in Resuelve we have managed to get from Mexico to Colombia, Argentina and Spain in new years.
What is the secret that allows a fintech to conquer the world?
I share three advantages of the fintech sector that have been key to the expansion in the world of companies.
Low costs, and prices. Fintech allow its users to know and use products and services remotely and without the need to go to a physical branch. It also allows a company to operate in a completely new country through the internet. Before, it was necessary for companies to invest in large corporate buildings and offices in all the places where they intended to serve clients. The savings generated by this differential is immense, and allows many companies to operate in new countries with a minimum investment, offering products much more accessible to consumers. Flexibility. The dynamism of the fintech sector allows companies to iterate and experiment constantly according to market demands.
The processes are simpler and the high technological dependence entails a trial-and-error environment
In this way, fintech companies can adapt completely to the market they reach, making the appropriate adjustments according to the financial behavior of each country and preserving the advantages of the initial product.
This personalization reaches the user level, who receives a customized service, regardless of whether it is located in the CDMX, Bogotá, Buenos Aires or Madrid. Use of Big Data The digitalization of the service has allowed the use of a large volume of information. The Big Data makes fintech analyze how the user interacts with their services and what improvements can be applied to develop a more personalized experience. In addition, the execution of different usability experiments helps that they are always innovating and measuring the impact of their decisions. It is a process of constant feedback and user learning, which drives the development of companies.
Currently, there are already samples that Mexican banks are promoting initiatives with digital services
The case of CoDI, or Digital Code, which will allow users to make payments through a QR code that is scanned with the cell phone camera, is an example of the advantages that technology has to promote the banking of people and services. transactions without the use of cash.
Personally, I have been a witness and promoter of the impact offered by Fintech companies in Latin America and other markets. In our sector, it has allowed us to have a first contact with the reality of indebtedness, to explore and analyze this phenomenon, as well as to notice the enormous need to offer financial solutions tailored to each person. However, the world changes and there will always be something that, as a sector, we can do to improve the financial life.