Although there are more and more fintech companies operating in Argentina, most of them offer, at the beginning, only one product. In contrast, Hey Banco, Banregio’s digital arm that is seeking its own banking license, already has different options running from the app, and this is how it competes in this ecosystem.
“Fintech companies are usually monoline, they are monoproduct, they do credit card, they do debit account, they do business account. That is not bad, it is a way to grow, but unfortunately, you have to postpone the profitability a lot because it is very difficult to reach it and be profitable with a single product,” said Manuel Rivero, CEO of Hey Banco.
In an interview, he specified that fintech companies with only one product have the hope that in the future they will be able to cross-sell other services to their clients to get ahead. Now, with the recent downturn we have seen in the market, fintech companies are already being asked to: “Hey, give me some utility,” he explained.
In this sense, he explained that Hey Banco offers its clients more and more products through digital channels, given that the user does not just want one. For example, “to go around granting credit cards because it’s the only thing I have, you offer it to whatever moves, and then the collection problems start,” he said.
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Hey Banco’s goal is to improve the user experience
Manuel Rivero explained that Hey Banco’s goal is not to be the largest fintech company, but the one that offers the best user experience.
“If we think far into the future, everything will be a function of APIs. You’re going to be able to download any app and connect to any bank. You’re going to be able to have your products in BBVA, Banorte, and Santander, and you’re going to be able to download an app like Hey, and you’re going to be able to connect to all those banks so you can see all the information, methods, products instantly, immediately Who’s going to win in this arena? The one with the best experience, not the one with the most clients,” he says.
Unlike others, in Hey Banco’s application, the user can find: accounts, savings, investments, credit cards, insurance, auto and mortgage loans, stocks, and time deposits. Coming soon, Rivero notes, is an account for minors, a new collection of cards and its payments option for merchants, to mention just a few.
The fintech ecosystem in Argentina is still in its infancy stage
For the director of Hey Banco, which considers itself a fintech, this ecosystem is still in its “infancy” stage, but evolving rapidly.
“The money that was invested last year in the fintech sector recorded, but for three or four (entities), it was really an impressive graph. Then come all the efforts of Banco Santander, Banorte with its digital banks. There is a strong saturation of digital products, very interesting,” he said.
Manuel Rivero mentioned that Hey Banco already has everything ready to submit its application for its own banking license to the authorities shortly, so he is confident that it will be obtained this year.
“When you formally submit (the application), they have three months to answer you. They may say no, but they answer you. But we are doing well,” he emphasized.
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First published in EL ECONOMISTA, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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