Connect with us

Featured

How Fintech is taking France by storm

There are a number of gaps in the financial sector that allow space for growth. These problems are slowly but surely being solved by fintech development. Fintech helps to fix pain points in the traditional banking or finance systems and even traditionally minded countries like France are beginning to see how fintech can help improve people’s everyday lives.

Published

on

This picture show a group os people working together.

For news about the most interesting fin-tech companies around the world, take a look at the Born2Invest app, which offers professionally curated business news summaries. Prepared by an in-house team of journalists, Born2Invest covers a wide spectrum of topics, such as investing, economies and global markets, trending business news, as well as industry updates on tech, real estate, media, and personal finance.

Fintech relations in France

In 2018, French fintech companies raised a record amount of $407 million (€365 million). To put that in context two neo-banks; Revolut and N26 neobanks raised between them, about $410 million. Despite this fintech is really beginning to take off in France.

For the moment fintech is not very well known in France: only 55% of the French understand the usefulness of fintech solutions. However things are beginning to change as fintech solutions adapt to the unique needs of the French market. French consumers tend to be slow to adopt new technologies and need clear explanations as to why something is better.

However, there is no shortage of solutions. Currently, the market is moving from a vertical logic focused on the sale of products to a horizontal logic, where we start from a need to develop innovative solutions that are truly adapted to the users’ needs.

Adapt to changing expectations

With its Recharge service, Amazon now offers its customers the possibility to recharge their accounts in cash with local merchants and then make online purchases. Pay in cash for an online purchase, is that a step back?

On the contrary, it is a sign that the population’s expectations are being taken into account: 57% of French people say they intend to use cash to pay for online purchases if they are given the opportunity to do so. So, rather than sticking to its positions, Amazon preferred to adapt its offer.

Understanding the needs of small business

The first mobile payment application comes from Angers and is called Papam. The basic idea: to allow users to accept card payments without requiring them to purchase additional hardware or taking out a subscription. A free application that transforms any smartphone into a very small enterprise (VSE) was born from this vision.

SEE ALSO  Iron condor: The safe trading strategy

Rather than promoting its application, the brand places itself on the sellers’ side by showing them the benefits of accepting credit cards: the ability to take full advantage of the business without worrying about payment and to grow the business by not missing out on sales. In short, beyond the simple expression of its offer, Papam places itself as a partner in the success of its users.

Understanding lifestyles

Hugo Sallé de Chou, the co-founder of Pumpkin, started from a simple observation to develop his payment platform: we rarely live alone for very long. “When you’re young, you live with your parents, then you go to school and share a flat, then you’re a couple and start a family again…” His idea was, therefore, to create a community current account to pool all current expenses. Or how empathy can anchor the technology in the daily life of its users by adapting it to their needs.

Helping people understand their money

“Banks and bankers certainly understand and care about money, but there is little evidence that they understand or care so much about people,” according to Mark Mullen, co-founder of the British neobank Atom Bank. His solution: instead of managing the clients’ money for them… help them do so, by putting them at the heart of innovations. His ambition is to transform Atom Bank in ” the world’s leading telepathic bank”. Based on the AI and data analysis, it offers, for example, the possibility of receiving the account statement for the next month.

As fintech begins to take off in France, it should not be thought that the French will adopt digital solutions immediately. it will be a slow process that will begin by taking the time to understand their needs to gain their confidence, rather than developing a product and then seeing how it can be used.

SEE ALSO  Walmart online shopping gains ground, challenges Amazon dominance

__

(Featured image by rawpixel via Pixabay)

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 JDN, 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.

Leah Marie Angelou is an LGBTI activist and equality advocate. She has been a writer for several feminism-focused groups for nearly a decade. Her pieces are often focused on career development and the workplace. She also regularly covers personal and micro-finance, business management and entrepreneurship. Recently she has also focused on covering the promising CBD and hemp industry.

Continue Reading

Most Popular