It’s possible change the paradigm What governed the last decades in the financial world? Financial freedom is the beacon of most people and businesses, and where the financial world is turning. And in line with this, the democratization of finance is necessary to make that goal a reality.
Today in Argentina, there is a very competitive market for financial products. The expansion and diversification in the offer of these means that users have different options available when it comes to financing, consuming, investing or making different transactions.
This may or may not benefit consumers. Because when it comes to finding a financial solution, like a loan or a credit card, the person can decide between more and better alternatives. But also the choice of the product will be the result of the greater or lesser level of information regarding the different financial tools that can be accessed.
How many times do we hesitate in choosing a product to finance us for not having the necessary knowledge to make the right decision. Knowing the type of product and the conditions that arise when choosing it are key to win as a user and use said service in our favor and not the other way around.
When analyzing, we must take into account different variables, those related to the service, such as interest rates, terms, forms of payment and amortization, the difference between list price and cash, etc. And the variables linked to the economic context, such as inflation, devaluation expectations. And everything that does to our personal situation, salary, income stability, savings and plans. This combination of variables will determine the decision for which tool we are going to lean towards.
So how do you make the best choice within this diverse market and have the best “behavior”? As has been heard, the technological processes They came to facilitate this choice and to bring the user better options.
According to data published by Americas Market Intelligence (AMI) in March 2021, according to the latest Dock report, access to bank and fintech accounts in Argentina increased between 2017 and 2021, reaching a 60% penetration in the last year. While in relation to mobile internet and compared to the other countries analyzed in the report, a 74% penetration is projected in 2025, being the second country with the best acceptance of this type of technology.
Precisely with the increase in mobile internet penetration, 5 million new users are estimated in mobile lines, a number that is equivalent to more than 10% of the Argentine population in 2020. This demonstrates the impact that the promotion and advancement of technology is having in the country and in the sector.
Regarding financial products, although credit cards are usually a popular product for most Argentines, with the creation of new alternatives within the fintech ecosystemit is expected that there will be changes in this trend.
Now known as “buy now pay later”, which is becoming more and more acceptable among users, and has the possibility of, as the word “buy now and pay later” says, with the particularity that in order to do so, it is not necessary to have a credit card.
So, once again, thanks to the progress of the fintech ecosystem, the user can count on more options to finance themselves. This not only benefits the unbanked, but also the businesses that can offer a new purchase and financing alternative of the products they sell.
Also, being able to find a range of options where the user can see product alternatives, requirements and conditions, for example, in loans or creditsthrough service proposals that integrate the entire offer in one place, show the great advance and the benefits that the user can find, having the possibility of evaluating the best option for himself, reducing negative alternatives or offers that can end up being rejected.
In addition to financial services marketplaces, innovative new products have emerged. Among them are digital wallets, which offer new utilities and solutions to the market. They are mobile applications with which multiple financial operations can be carried out, and their users are for both banked and unbanked people.
Being a secure means of saving, sending and receiving funds, it is considered the most important financial innovation after the advent of ATMs. In them, you can perform operations with QR codes (quick response code) which provides agility and efficiency to the system.
The range of possibilities is enormous, and as the ecosystem continues to be driven by the market, the alternatives will be more and more and to the benefit of the user. And in this sense, financial inclusion may be more comprehensive and the financial education it will have to be taken into account by both users and players in the sector.
Julian Sanclemente, CEO of Alprestamo
by Julian Sanclemente
