In a context of uncertainty, due to the coronavirus and the movement of markets affected by variations in oil prices, seeking prosperity for all and overcoming the challenges of banking in the digital era were the main topics of the 83rd Banking Convention held in Mexico this March 12th and 13th.
However, this event managed to bring together representatives of the financial and banking sector as well as the country’s regulatory authorities, who analyzed the new measures to boost the national economy and achieve, among the greatest challenges, a digital, efficient and secure banking system.
The Born2Invest mobile application brings the latest business news from around the world for you to stay informed.
The disuse of cash is the only way forward
Officially, the way forward in finance for the coming years includes strengthening the disuse of cash, although 91% of payments in 2019 were made in this way, according to data from the Bank of Mexico (Banxico). The Digital Collection (CoDi), presented at the convention last year, did not achieve the expected penetration, and there are still challenges of credibility and confidence in digital transactions, not only by users but also by regulators.
“A pending task of the large entities is to teach more people that being part of the financial system has ample benefits and it is increasingly easier to join, even with devices such as the cell phone. At this point in history, banks are no longer the only ones in charge of educating and financially including people. Fintech companies are also protagonists and co-responsible, given their highly technological component that allows for the massification of information and, consequently, ensures banking penetration”, warned directors of the specialized financial services platform Coru.com, present at the 83rd Banking Convention.
Fintech: the commitment to banking penetration
In Mexico, there is a large sector of the population that cannot access financial services. According to the National Report on Financial Inclusion (RNIF), coverage of this type of service is scarce in several regions of the country: 22.3% of municipalities do not have banks or financial companies. In contrast, developed countries have increased the banking penetration of people by implementing laws, which has generated the infrastructure for technology to develop and for companies to emerge that work in financial inclusion.
Given this panorama, the more than 390 Fintech companies that make up the ecosystem in Mexico are a fundamental part of promoting banking penetration, particularly because of their following components:
1. Speed. Financial service contracting processes do not disappear with fintech, but they do become more accessible thanks to the implementation of artificial intelligence in risk, authentication and verification processes. It is also necessary to identify and confirm data, but with the possibility of doing it from the telephone, which represents a saving of time and money for the consumer and the issuer.
2. Personalization. The various financial technologies facilitate access to products and services that would be more difficult to acquire by traditional means, thanks to a unique experience. “This is the case of Coru.com, a service platform where each user is matched with the most appropriate financial products (credit cards, loans or insurance) for each case, using artificial intelligence and a 100% digital marketplace,” explained Luis Madrigal, the company’s managing director.
“Fintech will help more Mexicans to access a formal financial service. The innovations in this industry allow consumers, who have never been to a bank before, to dare to apply for a credit card or any other financial service,” he added.
3. Low cost. Traditional banking charges commissions and that is very relevant for customers. For 48% of people, one of the reasons to give other financial services a chance would be if they charged lower fees, according to a survey by the Internet MX Association. These are some of the strongest value propositions among the products offered by fintech companies against the traditional banking system: zero commissions, card with free delivery, bonus of the commissions charged by other banks’ ATMs, refund of a part of the money spent (cashback), among others.
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 La Capital, 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.
Cardano’s Stablecoin DJED – an Important Addition to the Ecosystem
At launch, DJED will be traded on several decentralized crypto exchanges such as MinSwap, with centralized crypto exchange Bitrue set...
The Spanish Labor Market Slows Down Again in January
Despite the fact that January's data leave doubts, there are figures that show that Spain, for the time being, continues...
What Is the Status of Permissions for Crowdfunding Platforms in Europe?
ECSPR will also encourage international (or non-European) platforms to join the EU. Wefunder, one of the largest Reg CF funding...
Sens Iqony Energy Solutions Obtains €19.5M Loans from Bpce Lease
Sens Iqony Energy Solutions has already acted in Italy in the past. In December 2019, the company acquired a pipeline...
Greece Opens Europe’s Largest Medical Cannabis Cultivation Facility
The medical cannabis facility is expected to gradually reach full capacity soon to supply a wide range of cannabis products....
Business2 weeks ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 3]
Business2 weeks ago
Achieving Financial Success For European Businesses With Technology
Featured1 week ago
DAO Studio, a Blockchain-Based Venture Studio that Aggregates Investors and Founders in the Web3, Was Created
Business1 week ago
Arrow Credit Opportunities Buys €15M of Loans from BCC Bergamasca e Orobica