Connect with us

Featured

Argentina’s fintech ecosystem continues to grow

The fintech ecosystem in Argentina grew over 70% in the past year. It is now the third-largest in Latin America, closing the gap with the main markets in the region. It is not a secret that the fintech revolution has reached Argentina. A growing number of countries in the region have opted to follow the market and invest in new technologies to improve the traditional fintech system.

Published

on

This feature show a person using a tablet.

Argentina is becoming one of the leading fintech powers in Latin America and is now in third place, after Mexico and Brazil. This data came from the second edition of Argentina Fintech Forum 2019.

With the Born2Invest application you will get real-time stock information, business headlines, fintech, and financial news. Updated throughout the day, Born2Invest is a professionally curated digest from the most reputable news organizations around the world.

Argentina leading in Fintech Forum

During the Argentina Fintech Forum 2019, different panels dealt with such topics: regulation, link with banks, payments, technologies, metrics, and trends.

Driss Temsamani (City’s Regional Head of Digital Channels & Enterprise Banking) explained that this is the first time that the Latin American region has surpassed India and China in its investment in fintech, reaching $480 million. This is due to the region’s creative capital and a competitive advantage over Asian and European market costs.

“There are enormous opportunities for the region, with ecosystems highly motivated from the public and private sectors to achieve greater digitalization of money,” added Temsamani. He also said that while technology is a necessary factor, it is not enough. “We need a cultural change that implies not only having the tools to achieve such digitalization but also achieving greater use to allow them to scale,” said Driss Temsamani.

Fintech in the country

Without a doubt, one of the key figures was that the fintech industry grew at a rate of 70% last year in Argentina. A figure that is even more relevant considering the economic complexities of that country.

According to research, the conclusion of a panel composed of Matías Friedberg (co-founder of Ixpandit), Ignacio Carballo (professor and researcher at UCA, UBA, and Universidad Austral) and Gabriel Bizama (national director of Financial Inclusion of the Ministry of Finance of Argentina), was as follows: “These results show that the path taken for the development of the industry was the right one. If all sectors work together, hand in hand with technology, there is an enormous opportunity ahead, in a country in which 70% of buying and selling operations are still carried out in cash. The challenge is to encourage the use and acceptance of all digital payment methods, achieving an open payment structure, more incentives and greater acceptance by merchants.”

SEE ALSO  Fresenius generates more than $3.5 billion sales in 2019

Robust ecosystem as a step to move forward

“In order to move forward and have a robust ecosystem, at the regional level, we must coordinate four fundamental pillars. These are the private sector, which takes the risk; the public sector, which defines the rules of the game; the academy, the powerhouse of talent, and the public of interest,” said Matias Friedberg.

“I like to think of the fintech industry with a background trend, how technology starts to make friends with the financial world. If this was a contractive year in economic terms, there are important signs of an industry that continues to grow. There was a 35% growth in the number of customers compared to last year who now have an active credit with a fintech. There was an 82% increase in the number of investors who tried to have a profitability through a platform of this vertical. More milestones are added to this, such as the QR technology, the record of opening of commissioning accounts and the CVU that connects all companies.

More about Argentina Fintech Forum

The Argentina Fintech Forum 2019 was held on November 19. The meeting was organized by the Argentina Chamber of Fintech and CMS Group and brought together more than 800 executives from all verticals of the ecosystem and complementary industries to discuss and build the agenda for 2020.

Topics such as the impact of technology, the Argentina and regional outlook and collaboration between fintech and traditional banking were addressed throughout the day by national and international experts.

Other topics presented in the agenda pointed to the role played by digital payments, the importance of defining a fintech user profile, and the challenges of public-private-academic collaboration in Argentina’s ecosystem.

SEE ALSO  How will introduction of GST affect Home Loan EMIs in India?

__

(Featured image by Adeolu Eletu via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in COINTELEGRAPH, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Daphne Freeman has worked in the crowdfunding and impact investing industry for the past few years, gaining experience in marketing, and connecting businesses and entrepreneurs in need with the right investors. As a seasoned grant writer as well as financial market journalist, she is passionate about making a social impact in the world. A free spirit, Daphne also enjoys writing and exploring topics of interest, currently CBD, health and beauty, and social media influencers.