March 8, 2021

The "fintech", solution to the financial problems of the Pacific Alliance

The irruption of the "fintech", technological undertakings that offer highly innovative financial products and services, is proposed as a solution to the problem of financial inclusion that affects the countries of the Pacific Alliance.

This was assessed on Thursday during the Business Summit of the Pacific Alliance, which brings together dozens of business leaders in the region to analyze and discuss the main issues for the future of the commercial block.

"Consumers are the ones that demand a more inclusive financial system for all, that can replace traditional processes through technology, which is where the 'fintech' arrive, and that is why it will have an impact on the financial inclusion, "said Juan Pablo Bruzzo, CEO of the 'fintech' Moni.

Bruzzo stressed that the emergence of these initiatives in the financial dynamics forced traditional players to adapt their services in favor of users.

"They are users that in a couple of clicks want to have their processes resolved, and the 'fintech' are willing to meet their demands," he added.

He also stressed that they are also more willing to look for other "ways to give credit access to people who had been totally unattended from the market."

Access to credit was another of the topics addressed in the meeting, in a panel entitled "The future of financial services", where Ceres Lisboa, senior vice president of Moody's Investors Service, highlighted that banking innovation brings "a dynamic of efficiency "

The analyst gave as an example the growth in the last four years of three 'fintech' in the region, which reached 25% of the credit card payments and transfers market.

"The secret was that they were interested in SMEs and small businesses that did not have access to banks or credit card machines," he noted.

For this reason, traditional banking has ceased to view this new financial technology with suspicion and, on the contrary, to join and learn from it.

This was stated in the forum by Eduardo Torres Llosa, CEO of BBVA Peru, who highlighted that these types of companies have come to remind banks of the need they have "to be much more agile and modern in order to survive".

"The financial client is changing in a dramatic way, which is why we are trying to transform ourselves internally to be slower, to be more entrepreneurial, we are aware that we need the 'fintech'," he added.

By way of conclusion, James Scriven, general manager of the Invest division of the IDB, considered that technology will be a door to development for Latin America, "one of the regions with the least financial inclusion in the world".

The Business Summit of the Pacific Alliance takes place in Lima from Thursday to Friday, and brings together its member countries Chile, Colombia, Mexico and Peru.

. (tagsToTranslate) solution (t) financial problems (t) (t) Alliance (t) Pacifico

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