Banca Etica Approved to Operate as a Fintech Company in Argentina

The Central Bank of the Argentine Republic (BCRA) approved Banca Etica to operate as a fintech company in the country. The bank aims to finance companies and organizations with a positive impact in three key areas of the economy: Education and Culture, Social Development and Environment.

The entity approved the registration of this fintech company in the “Registry of credit service providers between individuals through platforms” (PSCPP), thereby allowing offerors to be brought closer and in contact with credit seekers to carry out loan operations in pesos, through a trust structured in collaboration with CFA Compañía Fiduciaria Americana SA, and Estudio Nicholson & Cano Abogados.

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How Latin American Banca Etica works

Banca Etica, the new impact investment platform, seeks to connect investors with projects from companies and organizations that generate a positive impact and require responsible financing.

In Argentina, the focus of investment will be on areas where the local real economy has global leadership, such as agroecology and regenerative livestock farming. Also in culture and creative industry, where the development of cinema and audiovisual production stands out.

With the arrival in Argentina, Banca Etica seeks to scale the scope of its commercial portfolio in the region where it already operates in Uruguay, Brazil and Chile, managing more than US$100 million.

The following trends will shape the way we interact with money and financial services in 2024

Evolution of digital payment methods

The digital transformation of payment methods shows no signs of slowing down. We will see continued advances in the way we pay for goods and services.

“Stablecoins” backed by real assets will become a reliable option for those seeking stability amid the volatility of traditional cryptocurrencies, providing consumers with flexible and secure options for transacting.

CBDC (Central Bank Digital Currencies) adoption will accelerate in several countries, enabling faster and more efficient payments supported by central banks.

The rise of “smart” cities

Smart city projects are increasingly adopting better payment technologies to simplify the lives of their residents, such as the expansion of electronic toll systems and the integration of digital payments in public transportation and other services. municipal.

This will allow citizens to pay tolls, parking, transportation tickets and other services with ease through mobile applications and digital cards, reducing traffic congestion and improving urban efficiency.

For example, Singapore successfully implemented a highly efficient digital tolling system that uses license plate recognition and electronic payments.

In cities such as London and Rio de Janeiro , digital payments for public transport are the norm, which has led to a significant reduction in congestion and carbon emission.

Artificial intelligence at the service of user experience

The integration of artificial intelligence (AI) into the business environment is radically transforming the way companies interact with their customers and improve the user experience.

In particular, AI is being used to further personalize the user experience, and this has a significant impact on the financial sector. According to a Salesforce report , 57% of consumers are willing to share personal data with companies that use their data to personalize their experience.

In addition to personalization, security is a crucial aspect of user experience , especially in online financial transactions . Payment technology must be equipped with advanced security measures, such as two-factor authentication and data encryption. This not only protects confidential customer information.

In short, artificial intelligence revolutionizes the user experience in the financial sector by enabling deeper and more precise personalization , and at the same time, advanced security in online transactions is essential to build customer trust and increase opportunities for sales.

Biometrics on the rise

Biometrics is experiencing significant growth in this context and is expected to continue its expansion in various areas. One of the most notable aspects of this advance is the consolidation of contactless payment methods .

These payment methods, which allow consumers to make transactions simply by holding their device or card up to a reader, are becoming the norm in modern society. A key aspect of this trend is the growing adoption of biometric authentication , which includes technologies such as the use of fingerprint and facial recognition.

As we move into the future, biometric authentication is likely to become a common feature in everyday transactions. This will not only simplify the identity verification process, but will also significantly improve security by eliminating the need to remember passwords and PINs .

Mobile devices and payment cards compatible with biometric technologies will become increasingly accessible and popular among consumers. The ease of use and security offered by these technologies will make them a preferred choice for a wide range of transactions , ranging from online purchases to ATM withdrawals.

The versatility of biometric authentication makes it suitable for applications in a variety of fields, including finance, health, security, among others.

In summary, 2024 will be an exciting year for the fintech industry. These trends are set to change the way we interact with money and financial services, bringing greater convenience and security to consumers around the world. Banca Etica and other fintech companies are, therefore, up for success.

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(Featured image by HalloweenHJB via Pixabay)

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

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