The impossibility of personally participating in a money transfer agency has had a positive effect on the transfer business of fintech companies that are dedicated to this area.. Diario Financiero reported this on April 30 in Chile.
In an article signed by Daniel Vizgarra, the newspaper noted that these fintech companies doubled the number of transfers compared to February and April.
At Global66, they are completed with 15,000 transfers this month, twice as many as in February. The company’s CEO, Nicolás Jaramillo, said: “What we see are two things: the first is that the trend will continue because people will still be reluctant to go to massive places with more people. On the other On the other hand, we saw that people liked our platform, we are 85% satisfied, and we see the opportunity for those customers who discovered this platform not only to stay but also to recommend us. “
On the other hand, ArcadiEnvíos CEO, quoted by Diario Financiero, stated that the transfers in his fintech in April were 7,833, compared to 6,342 in February, an increase of 23.5%. He said, “There are a large number of immigrants in Santiago Centro who trust many traditional agencies like West Union, but these offices have been closed because of quarantine and looking for digital alternatives. We have seen strong growth in user and volume.”
Fintech companies have noticed that the nature of the customer has changed. Jaramilló explained: “We see a slightly different behavior (…). The client differs from the one we normally had. We believe that the new client changes the channel because its usual mechanism is closed or it is not would like to.” You are exposed to the virus at typical shipping agencies. ”
The managing director of FinTech Chile, Ángel Sierra, was of the opinion The momentum that digital money transfer companies have had in this crisis will make others enter the business. In this scenario, he noted: “More FinTech for remittances is born here, and those that already exist will deepen their business.”
“When a natural person has to make a bank transfer, it is a cumbersome, complicated and expensive process. These digital platforms create a user, validate very carefully with the rut and the serial number and effectively make people all get rid of the manual process that has to be done with banking, “he added.
FinTech Business Bill
In Chile, Finance Minister Ignacio Briones informed the President of the Senate Economic Commission, José Miguel Durana, about the deadlines for submitting the Fintech Act to Congress. This was reported by La Tercera on April 13th. This medium also indicated that the project would reach Congress in the middle of this year.
As quoted by La Tercera, the finance minister said: “It is a priority for this ministry to promote the creation of more and better technological financial innovations, because we believe that they make a significant contribution to financial inclusion, job creation and among other things, reducing costs in the financial markets has a positive effect on competition ”.