What Fintech Trends Set the Agenda for 2021 in Argentina

Financial services gained great prominence during the pandemic and also in the post-pandemic stage, hand in hand with the evolution of consumer payment methods. There is no doubt about the dynamism of fintech companies in Argentina and the rest of Latin America, as well as the value they generate to the digital ecosystem.

Thus, countless services associated with payment solutions and digital transactions have emerged, improving the user’s shopping experience, facilitating a frictionless journey, and ensuring security, stability, and ease.

“Looking ahead to 2022, it is important that we start analyzing what trends will mark the end of this year of continuous learning to maintain demand and meet the new needs of consumers, who guide the products and services that companies require,” remarked Valeria Rodriguez, Director of LYRA Argentina.

In the financial sector, there were important advances in digital transformation, which ratify the importance of placing the customer at the center of the development of products and services.

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LYRA shares 3 trends that are here to stay:

Bye-bye cash! Although cash showed great resilience and will surely remain so for a while, there are more and more alternatives. Digital payments are here to stay and with it the payment fintech companies proliferated, which took advantage of this trend and offered innovative solutions, enabled by technologies such as big data, blockchain, cloud computing, among others.

Internet-connected devices are the new wallets! All those technologies based on mobile devices revolutionized the way we make payments and will continue to do so. The natural evolution will be that any device connected to the Internet can become a wallet, from a watch to a TV screen.

Massification of wireless payment terminals: In Argentina, this is a breakthrough, while in Colombia and Brazil this trend has been in place for many years, but wireless terminal payment delivery was not so common in our country. Today the terminal has evolved into a mobile device that serves as a wireless cash register.

“Undoubtedly, the use of technology has made it possible to reduce transaction costs for operators and speed up the execution of payments, which results in a better customer experience, revolutionizing the way in which people make payments. It is important to continue working and be alert to the needs of the market to take the digital ecosystem to the next level,” she added.

The number of fintech companies already triples that of traditional banks

Financial services 4.0 are expanding faster and with more innovation than almost any other. However, banking entities are starting to learn the new codes. When considering the figures, there are two facts to keep in mind:

There are 238 fintech companies, i.e., almost three times the 79 entities (between banks and finance companies) licensed by the Central Bank. In terms of the number of users, the 4.0 institutions have 8 million accounts, compared to 71 million savings banks in the traditional system.

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(Featured image by Nestor Barbitta via Unsplash)

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

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