Saturday , July 2 2022

75% of local fins are planning to expand over the next three years


As in other countries of the region, there was a fintech boom in Argentina in recent years. At present, there are 133 local and foreign companies in the local system that combine financial services and technology. Considering financial participation, most of them have investment and expansion plans for the next three years.

The data comes from a report prepared by the Inter-American Development Bank and the innovation laboratory of Afluenta, BID Lab, which is a fintech that aims at collaborative financing, including the continuous growth of such firms. Since 2013, it indicates the growth potential in the short and medium term.

In the country, the ratio of deposits to GDP is only 15%, and this ratio is 47% compared to the regional environment. Finansal In the context of low financial participation and high mobile internet penetration, Fintech has the potential to use technological innovations to deliver financial services to the neglected population, mak said Viviana Alva Hart, Operations Chief of IDB in Argentina. financial sector. "

Financial participation is a great opportunity for the sector strengthened by the value proposition offered by Fintech companies: 65% of companies focus on operational improvements, efficiency and time savings, 44% of final consumers. other companies depending on the improvement services and 31% offer new products.

Consumer Accenture was behind this report prepared by the international organization. "The Fintech event does not represent a fad or transition trend, an ecosystem of new and innovative companies that are trying to revolutionize the financial industry," said Diego Zorzoli, chairman of the board of directors of Accenture.

Zorzoli said: 39 At the local level, we are facing a new ecosystem, but there is one constantly expanding: 70% of the Argentinean Fintech appeared in the market over the last 5 years and 75% of Fintech plans to expand operations. In the next 3 years he was staying outside to offer a range of diverse and innovative values, "he concluded.

At this point, financing is one of the main factors that concern entrepreneurs in the sector. According to the report, 59% of companies have managed to obtain some kind of external financing, which is slightly below the average for the region where they can get some kind of external financing at the beginning of their activities.

"Two key factors triggering scarce financing for the Argentine ecosystem: a difficult macroeconomic context and a lack of regulation in the ecosystem and a potential relationship between financing options," the report says.

"Most companies think that the availability of funds is an important element for the development, and over the existence of consumers and regulations, 69% believe that the outlook will improve in the short term."

In this context, Argentine Fintech Chamber President Juan Pablo Bruzzo said,% Argentina is becoming an important player in the eyes of international investors, and more than 59% of companies receive money from abroad and half. Fintech plans to invest more than a million dollars in the next 3 years. "

With regard to the possible competition with traditional financial institutions, the report says: "Fintech sees its peers, banks and insurers as their greatest collaborative partners, and the greater cooperation between Fintechs and banks can be beneficial for both.

At this point, CEO & water quality co-founder Alejandro Cosetino, Afluenta, stressed the potential for financial inclusion of these companies in the local capital market. "We believe that the Fintech industry can improve people's lives, the ultimate goal is to grow the financial system, to have a bigger market." The concept of financial inclusion is more economical for more parties than for more people to have access to a loan. Finansal

Clara Pedotti

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