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What characteristics distinguish fintech companies from traditional banking?

June 8, 2020

Flexibility, understanding of customers and alliance with technology are characteristics of the companies that combine technology with financial services (fintech) and have recently gained relevance. This was described in detail by Tandil Diario with an article from Argentina on June 3 last year.

According to this post, Fintech companies have been installed worldwide and offer a new financing system, the protagonist of which are digital platforms.

“”They were created on the market to rationalize the financial world in several ways. They propose a new way to manage transactions, payments, purchases, loans, and investments, both privately and commercially. They quickly gained millions of customers around the world, ”they emphasized.

What characteristics distinguish fintech companies from traditional banking?What characteristics distinguish fintech companies from traditional banking?

“Fintech companies have used technological advances in information and communication to implement alternatives in the financial system,” they added later.

According to the article, there are three important characteristics to consider in fintech:

  1. Flexibility: “They suggest for all customer groups to rethink the requirements of traditional banks and to offer them flexibility in managing their money and performing operations. The simplification of the required documentation and the use of new parameters to create a user’s credit profile led to a broad involvement of people in the financial system. “

  2. Customer understanding: “Fintech companies have understood that the world and therefore people’s needs are changing. With this in mind, they could see that when administrative issues were resolved, there was immediacy and that customers had less time for several reasons. Changing the protocols and the time taken to complete the procedures was a key to the success of this new system. “

  3. Alliance with technology: “The adoption of technological progress and the tools provided by the Internet has contributed to a great dynamic. They allowed customers to get 100% online loan support without leaving their homes. Solve the business administration, within reach of a click, quickly established in the world. They were also responsible for securing their customers’ data with detailed guidelines. “

Growth process

On the other hand, they cited a study by the Argentine Fintech Chamber, which highlighted the following: “The ecosystem is undergoing a process of growth, which is characterized by the introduction of new technologies and digitization and is gaining strength in the country. It is emerging, but it is in the process of expansion. Argentina is currently the third largest fintech company in Latin America. ”

They also emphasized that protecting user data in operational processes and the entire value chain is important because fintech companies operate via digital channels.

Tandil Diario concluded that fintech companies will stay here: “This new form of business, accompanied by a change in customer behavior, strengthened their position in the market. The digitalization of finance therefore proposed silent competition with traditional banks, which was quickly accepted by users. ”

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