What products and services introduced by the 300 Fintech companies in the Spanish market are really different from the traditional ones?
The analysis of Fintech’s financial products compared to those of traditional banking performed by FUNCAS-KPMG concludes that differential financial products with a high added value are some of those offered by Fintech companies that complement banking products / services and others to support banking processes. They are in particular:
The financial comparator
They are advisory services to improve asset management by finding the most efficient product. They provide extensive and permanently updated information on mortgages, loans, accounts, cards and existing deposits, so that users choose the most advantageous product according to their profile and particular needs.
The digital onboarding
It consists of supporting the identification process for the registration of a user as a new client. For this, it has the use of innovative tools and technologies such as biometric technology for optical and facial recognition and to capture official identification documents. In this way, the physical presence of the user in a bank office is not required, but the process is performed from any computer or mobile device with greater ease and agility. In addition to saving costs and time to banks, identity fraud is more effectively prevented and improves the user experience.
The financial aggregators
They show in the same place all the financial information of a client, their positions in the different banks, cards, etc. They usually provide value added services to the client, such as the classification of expenses or various alerts that allow you to save or improve the management of your personal finances, provide your credit profile or a marketplace service to hire products such as insurance, loans within the platform , supplies … adapted to your profile.
The Fintech of financial infrastructure
They allow the connection with the banks for the automatic download of the movements, in a way compatible with the main ERP and existing banks. These financial technologies allow to improve the agility, flexibility, speed and accuracy of the information
Fintech that bet on Big Data and Artificial Intelligence collaborate with banks to improve the knowledge of their clients and their needs, define new products or services or detect possible fraud situations.
The SCF (Supply Chain Finance)
It is a service aimed at companies, which provides efficiency to the financial processes of the supply chain. With it, cash flow management and liquidity in these processes are optimized.
Supplier invoice payments are one of those processes that can be managed using an SCF solution. Through a digital platform, companies optimally manage the advance payment of invoices. Purchasing companies get significant discounts from suppliers that need liquidity at a given time. These only have to access the platform to consult the discount proposals that your client company has offered and accept them if it is of interest.
The proposal and acceptance of the discounts is an agile and simple process for both companies. The buying company obtains a greater profitability than with the manual management of the discount for prompt payment, while financing its suppliers. The two win.
The use of electronic money
BilliB goes beyond the SCF itself by including the use of electronic money, the management of the settlement of payments and the payment address.
An SCF tool can include the participation of financial entities to offer the possibility of purchasing companies to finance payments when they wish, instead of using their cash. In this case, the customer-supplier-financial institution relationship is optimized to the maximum, as everyone wins.
In this sense it should be noted that the SCF is a different solution to the confirming. This instrument helps finance the provider by advancing the payment of the bills owed by your client. It is the bank that leads the operation and marks the cost that will be charged to the provider to get the cash advanced.
However, with the use of a SCF solution who leads the operation is the purchasing company, which decides what discount to apply to its provider and what type of financing it wants to receive from the financial entity. If you want to go deeper into this aspect, you can read the post where we explain the difference between BilliB and the confirming.
The SCF is a very strong international trend
BilliB has brought this financial technology to Spain for the prompt payment of invoices. It has adapted it to our fiscal and financial reality exclusively and has made it an affordable tool for companies of any size, not just large companies, as is often the case in the US and Europe.
We conclude with the observation that these Fintech companies that offer differential financial services or products have a promising future. Its association or collaboration with banks is a reality and this will allow them to evolve and develop their products and services, because Spanish banks have the capacity to invest and with the trust of their clients.
Also published on Medium.