It is very likely to hear or read about the term fintech, but what are they? What are they for? Or who are they for? And that refers to more questions or doubts. The first thing to know is that fintech comes from the union of the words Finance and Technology and defines the digital born companies that offer financial services through these platforms, such as Internet pages, social networks, mobile applications, interfaces or any other another means of electronic.
What makes them different from traditional financial services?
The main difference is the use and application of technology in financial services. Which makes it possible to offer them in a different way for those who do not have the time to complete the procedures, do not want to go to a branch, do not have the documentation to open an account according to the requested requirements, or live in remote places where it is difficult to have access to a traditional scheme.
How do they protect user data?
Fintechs are highly innovative in the application of platforms such as Artificial Intelligence or Machine Learning. Whose combination allows the detection of suspicious activities in a practical way immediately. For example, our protocol includes contacting the user to report irregular movements and take the necessary actions to ensure data protection, always adhering to Mexican regulations.
How do you guarantee the security of the money?
They work under the framework of the Law to Regulate Financial Technology Institutions. This ensures the security of the money. Sometimes other measures are also followed.
Who can have a digital financial services account?
Every time there are more players in the fintech ecosystem and each one offers a different range of services. For example in Cuenca, the service is for all, national and foreign. They maximize the use of technology to provide financial services in a friendlier manner.
One of the barriers that fintech company helps to break is that of the requirements to open an account. Everything is done via the application, it is only necessary to take a photo of an official identification such as passport, INE, residence card or consular registration and proof of address to make unlimited deposits. Without proof there is a limit of $ 18 thousand pesos per month.
It is important to point out that the Fintech Law requests that the user share. For a single occasion, their location when accepting the terms and conditions of service, in order to process the account opening. Which gives access to services such as sending and receiving money, payment of services in real time, 24/7. In addition to a physical card and a virtual one, which has the support of Visa.
What challenges are there?
One of the biggest challenges is to build trust in the adoption of new technologies by users. There it is important to announce that they have digital financial services options at their fingertips, without a doubt. But also that all participants in this system comply with the regulatory framework, operational standards for the protection and protection of both personal data and financial. And design their products putting the user in the center, making them friendly, with a high quality customer service that pays to the construction of such trust.
Also published on Medium.