FinTech brings users closer to the financial system

FinTechs have native digital channels and rapid innovation cycles, which give them competitive advantages to attract a greater number of users to their platforms.

During 2020, FinTechs managed to consolidate in the financial ecosystem, helping many companies in their business models, in matters of banking and financial inclusion.

A recent analysis by the International Monetary Fund ranked Latin America as the most profitable region in the world for banking only after Africa.

Costa Rica ranks as the fourth Latin American nation with the highest percentage of financial inclusion, having 68% of its adult population with a bank account.

The FinTech sector is an emerging market in our country that every day has a greater boom as it makes use of technology as a mechanism to innovate in the financial sector.

"A state-of-the-art electronic payments system offers Costa Rica untapped potential for FinTech companies to be a powerful catalyst for financial inclusion ," said the Economic Study of Costa Rica 2020 of the Organization for Cooperation Economic Development (OECD).

FinTech and its strategy to attract users

Among the main strategies of FinTech are the usability and accessibility of banking services through their digital DNA, allowing to reduce the obstacles that usually characterize the traditional system.

Antit offers rapid design and development with advanced solutions that stand out for their competitiveness and excellence.

In a society with high penetration of mobile devices and low banking, FinTechs have found a way to reach this unbanked population in an innovative way.

This through a sophisticated accounting system capable of accounting for a large number of transactions, cheaper credits and savings and investments with higher returns.

In addition, to be able to estimate the risks due to delinquency by making use of advanced models of artificial intelligence, neural networks and alternative data.

Also, be attentive to the market to understand the needs of users adapting to them to propose effective solutions.

In this way, through the digitization of services, banks and FinTechs have managed to consolidate alliances to offer a better digital experience for users.

The development of commercial banking with the intervention of FinTech systems makes life easier for the user and, at the same time, they achieve greater financial inclusion.

This competitive advantage has made banks increasingly inclined to seek mutual collaboration to reinvent themselves in the market.

In this way, the need to develop an attractive and meaningful experience for the user becomes stronger.

FinTechs have been pioneers with the creation of simple and elegant platforms that give the client the feeling of saving time by carrying out all their procedures from the same place in an easy, fast and secure way.

Commercial banking services must measure their success by the degree of empathy they achieve with their clients, anticipating their actions, needs and emotions.

Main challenges to face

FinTechs must continue working to forge alliances and offer services through multichannel platforms, 365 days a year and with competitive advantages that are attractive to users.

The emerging FinTech market in Costa Rica can be divided into four areas of action according to the Inter-American Development Bank (IDB) study: payment solutions, alternative financing platforms, technology companies for financial institutions and business finance management and alternative score ( Scoring).

Users have high expectations regarding the characteristics of the service, specifically speed and availability in real time.

FinTechs offer solutions to traditional banking by leveraging connectivity, mobile technologies, data analysis and the implementation of artificial intelligence.

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