Agility in customer interaction, favorable user experience and quick solution generation are some of the features that companies use in the fintech ecosystem in the current crisis scenario that results from the development of the Covid pandemic. 19 in Spain. This was stated by the Spanish Association for Fintech and Insurtech (AEFI).
According to AEFI, fintech companies can demonstrate their ability to meet users’ needs so that they can use the elements of Royal Decree Law 11/2020 in the current scenario, which originally only regulated the moratorium on mortgage debt, which was extended to the moratorium on non-mortgage debt. “This expansion rule also included moratoria that are outside the scope of this comment, such as paying rent and paying social security contributions. Due to their disruptive business model and the flexibility to run some processes, some Spanish fintech companies have one during this period Edited a series of moratoriums that resemble traditional financial firms that are larger in size ”, as evidenced by the above association, through a release.
They also stated that During the delivery, various technological solutions were developed to keep up with the economy.This also applies to video conferencing apps and virtual meetings, where the number of users has increased exponentially during this period and has reached market value in order to efficiently respond to the needs of millions of employees.
The statement also said: “Given the challenge facing the Spanish economy, it must begin a process of rebuilding part of its pillars that have been destroyed or largely damaged by the total paralysis of its activities. For several months, Fintech companies specializing in online lending, alternative financing or payment solutions are postulated as alternatives to traditional banking to provide their customers with efficient services if crime predictions will multiply by two that traditional companies restrict access to credit and need alternatives to responsible credit“”
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How do fintech companies help meet the requirements and deadlines to qualify for the moratoriums set by Royal Decree 11/2020? In answer to this question, five points were listed in AEFI’s answer and explained as follows:
Advances in remote identification. The technology is positioned as a primary element to drive identification and verification remotely. This speeds up the formalization of many ICO loans and tries to solve the enormous demand for applications that lead to delays in collection.
Recording the implementation. Fintech, dedicated to consumer credit, has managed to implement the moratorium in record time, as set out in Royal Decree Law 11/2020 of March 31, which allowed them to manage thousands of moratorium solutions in the latter Months.
New credit rating criteria. In addition to their speed in adopting the new rules, they have made adjustments to the credit rating criteria to protect consumers and to ensure that customers are funded responsibly and sustainably.
Payment plan agreements. Some fintech companies have applied the Royal Decree provisions to offer solutions to borrowers who failed to meet an agreed schedule, to make agreements to make smaller payments, and with a longer time horizon, which creates discipline in paying the debtor and help him significantly lower the “debt service” rate. In the medium and long term, these companies suggest that if the situation continues over time, more structural decisions can be made that are based on formal debt rescheduling and mainly focus on a long-term payment plan. Term that allows the debtor to stay informed of payments if their ability to generate cash flows is permanently impaired.
New electronic tests. Other fintech companies have enabled the creation of electronic evidence with online legal security support and positioned themselves as optimal digital solutions that have shortened the time it takes to sign ICO loans for various clients in the financial sector, both commercial banks and SMEs, Self-employed and private individuals. .
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 market participants. AEFI currently has 145 affiliates and 28 international alliances.
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