FinTech revolutionize the traditional financial model

Melissa López
December 6, 2020

The global financial system has had to react to the emergence of FinTechs in the market, showing that technology, more than a threat, can become a strategy to reach a greater number of clients.

Currently, both smartphones and social networks have stood out as data sources that, when combined with artificial intelligence, drive financial innovation.

In this area, FinTechs have stood out for the use of alternative data sources to issue a credit rating, promoting financial inclusion.

This empathy with the user on the part of FinTechs has allowed them to connect from millennials to generations that are already over 40 and are disenchanted with traditional banking.

However, there is still a sector of the population that values ​​this physical contact with traditional entities, who view technology with distrust and that will be the greatest challenge to be conquered by FinTech.

Among the aspects that FinTech must reinforce as a challenge to this population is:

Trust: FinTechs must build a reputation and earn the trust of this sector if they want its preference over traditional banking.

Security: along with trust, this is one of the most important factors, which is why FinTech must continue to set the standard in the implementation of high levels of security and help educate users on how to eliminate unnecessary risks.

Brand value: FinTechs must find a way to turn their image into a familiar solution that is synonymous with trust for users, individuals, and companies.

Likewise, they must have a differentiated offer within the financial sector that makes them attractive for alliances with banking entities or stand out within the FinTech ecosystem.

Financial institutions are aware of the potential that FinTech can bring to their business models, helping them innovate, transform themselves digitally, thus meeting the demands of the clients that make up the current market.

Likewise, FinTechs have come to demonstrate that a new banking model is possible by turning our mobile phone into the best office with the plus of its ease of use, transparency, speed, and above all a better user experience allowing 24/7 access.

This conglomerate of shares makes us question whether there will continue to bank as we know them until now or the digital office will increasingly displace physical ones.

In the case of Costa Rica, the FinTech sector is an emerging market in our country that grows every day as it makes use of technology as a mechanism to innovate in the financial sector.

One of the sectors where FinTech has stood out the most is the payment means to market, offering a variety of faster, more efficient, and more accessible financial products and services to a sector that until now had been excluded from traditional banking.

The Inter-American Development Bank (IDB) together with Finnovista presented the study “ FinTech in Costa Rica: Towards an evolution of financial services 2019”.

In this study, 25 startups were identified where 86% of them are less than five years old, 48% have only been operating for two years, 29% were born between three and four years, and 10% were born between four and five years.

Antit is a FinTech mobile development company specialized in Minimum Viable Product (MVP) and Time-To-Market (TTM) products, which was founded in 2015 taking advantage of the highly qualified resource that our country offers to enter the Fintech world.

FinTech Apps have fostered consumer confidence, which has promoted further growth of these platforms. 

At Antit, the development of our products is focused from start to finish on the customer experience, we are constantly innovating to offer the most competitive tools in the current market.

The Mobile Finance Report 2020, which crosses data from different parts of the world between January and June, showed that the pandemic accelerated the growth of FinTech applications during the current year compared to 2019.

Antit offers custom design and rapid development of advanced solutions according to the needs of each of ou