The country shows an increase in startups focused on financial products and services, a growth that expands opportunities for segments with difficulties accessing traditional offerings.
In a country like Argentinawhich is going through a new economic crisis and whose progress in digitization does not occur evenly in all areas or throughout society, the banking It is a question to be resolved. In that context, the business sector claims to be contributing alternatives hand in hand with the startups and fintech.
“We are talking about a years-long trend, reflecting a gradual increasebut that clearly leaves precedents for the scenario that is to come,” explains Julian ColomboCEO and founder of N5, fintech specialized in solutions for the financial industry. In that sense, he exemplified that “when applying for credit, people and entities such as micro, small and medium-sized companies may be excluded for not meeting all the requirements.”
According to the latest report on the sector Inter-American Development Bank (IDB), the fintechs they grew by 37.3% between 2020 and 2021 and they concentrate 11% of the platforms in Latin America and the Caribbean—with 276 companies. Since 2017, the country has increased 183.5%, above the average of other geographies in the region, which in the same period advanced 153%.
For Colombo, “The history and economic context of our country taught us to be attentive to any instrument that may be useful to us.and the fintech industry is the clearest example of this innovative outlook.” “Digital transformation is the protagonist to improve the services available and include the greatest number of population segments possible,” highlights the CEO and assures: “At N5 we understand that this is due to the characteristics that digitalization presents to us and that is why we aim to digitize operations without having to dismantle existing structures or accustom customers to generic products.”
In the Argentine and regional fintech ecosystem, companies identify people’s needs, such as access to credit, and look for the opportunity to solve the challenge within the context that we already know. According to the IDB, almost a quarter of fintechs worldwide are Latin American and Caribbean. Within the ranking, Argentina occupies fourth place, behind Brazil, Mexico and Colombia. “This vision of economic resilience makes the potential of our industry enormous”says Colombo.
Regarding the future, the executive believes that “it won’t be long until startups begin to grow.” Digital Banks and Open Finance. Finally, he concluded: “With the new regulations and normative provisions of Open Banking and Open Finance In the southern cone, the innovation of fintech platforms will reach new levels and will surprise us with services and products that, I am almost sure, we will not be able to imagine yet.
Source: Ambito
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