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AEFI has created a six pillar document in the fintech sector to overcome the Covid 19 crisis

May 29, 2020

The AEFI (Spanish association of Fintech and Insurtech) analyzed some keys that would enable the sector to emerge stronger from the current crisis due to the Covid-19 corona virus. Through a statement, this company shared its vision with Cointelegraph in Spanish. Six foundations aim to make the financial technology ecosystem one of the leading players in the Spanish economy in the coming years.

“”Spain is one of the countries most affected by the COVID 19 pandemic. This leads to economic chaos on a global level, which is not unknown to companies in the fintech environment It has one of the most powerful ecosystems on the European continent, consisting of companies in different business areas, which, by their nature and their 100% digital business model, are capable of developing certain products and services in such complicated circumstances as today, and which can become fast and effective solutions in the United States Money and financing, streamlining transactions and telematic customer service, signing contracts thanks to LegalTech and RegTech, and protecting goods, travel or health with Insurtech, ”they said.

Then they explained that fintech companies have so far been able to improve the ecosystems and infrastructures of the financial markets and that thanks to the rapid technological development of these companies, they could change the post-Covid 19 scenario and offer other companies digital financial services. and for society as a whole.

AEFI has created a six pillar document in the fintech sector to overcome the Covid 19 crisisAEFI has created a six pillar document in the fintech sector to overcome the Covid 19 crisis

This is the case in this scenario AEFI has produced a document describing the six pillars of the fintech sector that it considers important Overcoming and mitigating the effects of the Covid-19 crisis in Spain in an optimistic start-up scenario for these companies, although regulatory and regulatory improvements to facilitate access to finance are expected to be the major challenge they face in the short term. These pillars are:

  1. Use of technology. Fintech is based on technology so that they can create new, more agile, more efficient and safer workflows, fundamental elements in the post-Covid 19 scenario. In addition, the use of the technology used can also improve process analysis with much more detailed information and data.

  2. Open banking. Fintech companies have revolutionized the finance and insurance sector, creating effective and productive environments by creating very powerful collaborative and collaborative processes. Likewise, its technological developments have enabled the creation of a new sales channel for the development of banking in a scenario that benefits various financial players.

  3. Protection of the financial user. According to AEFI, the use of technology strengthens “operations that are not affected by the defect of the human eye or the not always well-intentioned human hand”. Therefore, users have more guarantees and could be more secure when it comes to working with their money through technology-based applications. In order to protect their customers’ personal data, fintech companies use express authentication mechanisms that could make user authorization more credible.

  4. Geolocation. Thanks to the boom in new technologies, the number of people using a smartphone or the Internet to access their bank details is increasing. This allows users to work from anywhere in the world and avoid the loss of data and documents personally. On the other hand, knowing the location of the client can be used to create more robust authentication methods and to avoid cases of phishing and money laundering.

  5. Increased competition. In recent years, fintech companies have revolutionized the fundamentals of competition in financial services on a global scale, and thanks to them, competition in the financial and insurance sectors has increased, leading to an improvement in the industry. Fintech’s entry into the traditional financial market has reconfigured customer expectations, increasing the standards of user experience.

  6. Update regulatory processes. Fintech companies have been rethinking regulation and surveillance because of their disruptive nature, as was considered a few years ago. Thanks to them, some regulatory obstacles have been uncovered, although there is still a long way to go to adopt new rules that enable companies to improve access to finance and promote synergies with other players in the financial sector.

About AEFI

The Spanish Fintech and Insurtech Association, which was founded with the aim of creating a favorable environment for the development of startups and fintech and insurtech companies in Spain, represents Fintech through vertical groups, which are led by specialized coordinators.

The association tries to collaborate, innovate and position Spain as a pioneering focus of FinTech and InsurTech. Build bridges in the Spanish FinTech ecosystem and promote interaction between key market players.

AEFI currently has more than 150 affiliates and 28 international alliances.

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