FinTech revolutionize the traditional financial model

Friday, August 6, 2021

FinTech revolutionize the traditional financial model

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.

FinTechs have shown that technology more than a threat can become a strategy to reach a greater number of customers , discover with us how this sector has increased competitiveness in banking.

Thanks to the search for empathy with the user, FinTechs have managed to connect from millennial to generations that are already past 40 and are disenchanted with traditional banking.

FinTech developments stand out for the use of alternative data sources to issue a credit rating, promoting financial inclusion.

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

Main challenges of FinTech in the financial world

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 for which 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 banks or stand out within the FinTech ecosystem.

Financial institutions are aware of the potential that FinTech can bring to their business models, helping them to 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 be banks 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 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 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.

FinTech Apps have fostered confidence on the part of consumers , 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 course of the current year compared to 2019.

Antit offers custom design and rapid development of advanced solutions according to the needs of each of our clients.

Melissa López
August 6, 2021