September 20, 2020

Experts analyze in Quito about microeconomics, inclusion and neobank

Banking experts from several Latin American countries met in Quito this Monday to discuss issues related to microeconomics, financial inclusion and neobank, during the V Latin American Congress of Education and Financial Inclusion.

The meeting, which will run until tomorrow, Tuesday, seeks to analyze new trends in banking education, the so-called sustainable banking and regulatory environments for this type of business.

The event, which will conclude on Tuesday, is organized by the Latin American Federation of Banks (Felaban), a non-profit organization established in 1965 in Mar del Plata (Argentina) and formed by nine countries and 623 financial institutions in Latin America.

The exhibitors include the Superintendent of Banks of Ecuador, Ruth Arregui; the head of Responsible Business of BBVA, Antony Ballabriga; the director of Felaban, Jorge Saza; the manager of the Colombian Banco Mundo Mujer, Leonor Melo; and the general manager of Banco Sol de Bolivia, Kurt Koenigfest.

Jorge Saza, of Feleban, highlighted the importance of the event and pointed out that there are some issues that concern the regional financial system, and that appear as transversal such as banking technology, innovation, cyber security, financial inclusion and economic growth.

He said that the regional banking Federation, in addition to preparing statistics, has designed trends to understand the challenges of the financial sector and mentioned as core issues the banking microeconomics, financial stability and the so-called neobank.

Saza recalled that world banking, after eleven years of the time known as the great crisis, reduced its level of operations, especially in emerging countries, so there was a decline in profitability.

However, he stressed that, although bank profitability has been reduced in several emerging countries, Latin America is a benchmark because the financial sector is still doing well in this region.

He also mentioned the neobank, a digital financial system that does not require physical branches and only serves in the virtual world, which also involves controversial issues such as the absence of deposit insurance and a non-human service.

He stressed that, although some international banks such as JP Morgan have decided to do without these services, despite having used it for a couple of years, the neobank is a trend in the financial market.

He also recalled that China has achieved better financial inclusion with the interrelation between some social networks and the banking service.

Thanks to this, people in these markets have restricted the use of cash, although in other regions the use of more traditional sources is more widespread, Saza added.

He also mentioned some obstacles in the Latin American financial sector and highlighted "poverty levels" first, followed by the absence of public policy incentives, poor financial education and informality.

The director of Felaban said that these are the challenges of the debate taking place in Quito and noted that, among others, the tonic of the discussion is aimed at establishing a "financial inclusion strategy" in the region.

The banking meeting will continue tomorrow in the Ecuadorian capital, in the meeting that addresses issues such as: "Trends to promote financial inclusion in the region", "Role of banking in the face of new global challenges", "Financial education for inclusion "," Regulatory environment for financial inclusion "," Sustainable banking and opportunities for green finance "and" Technology and digitalization for inclusion and education ".

. (tagsToTranslate) Experts (t) analyze (t) Quito (t) microeconomics (t) inclusion

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