the 10 trends of the Argentine market

The expert analyzes the main axes on which finance 4.0 will move: from the interoperable QR, to open banking and digital currencies

He financial ecosystem has become extremely complex. As the technology and new ones are added players to the market, it becomes more hard power predict what will happen or what course companies will take.

Far was it the financial world governed by big enterprises with traditional products and huge networks of branch offices. Rather, it happens permanently that small arise startups who are dedicated to payment methods and overnight they begin to grant loans or companies that are dedicated to the investments and they expand their business incorporating cards.

Even the big ones banks have been forced to turn towards the world digital, changing their processes, creating your own fintech or adopting new products disruptive.

What will happen? Let’s look at the horizon.

1.- The QR will be interoperable

There are different models of QR in the world. China, pioneer in QR payments, has a system where more than 90% of market is dominated by WeChat Pay and Alipay, but both systems no They are interoperable. Contrary to this, in Mexico the system was created CoDi, developed by the Bank of Mexicowhich works like a interbank network for payment with QR and technology NFC.

It makes little sense to think that each QR system will be maintained closed in the next years. While Payment Market hit first and has managed get in to the shops as one more means of payment, many have been incorporated other players who are creating their own networks and claim the interoperability.

While the standard QR code was already regulated by the BCRA to guarantee the interoperability, one thing is missing firm action regulator for move along towards a system interconnected that benefits users. Companies providing the QR service could to compete by acquisition of businesses looking for make it profitable through the charging of a commission of “interchange”.

2.- The Central Bank will regulate fintech

In January of this year, the central bank defined calls “Virtual Wallets” as “Payment Service Providers (PSP), prevented them move the money that their clients have deposited in them and demanded to the companies that provide this service register as such before April.

Later in February, the entity chaired by Miguel Ángel Pesce determined that the Business they debit dues for financial loans they cannot use the Direct debit as a collection tool. After that, the BCRA made several observations and reports on Business who are engaged in the marketing of cryptoactive and about fees of interest that some fintech companies charge for their credits.

Everything seems to indicate that the central bank will advance further in depth about the fintech. The question is whether a dialogue table that allows to create a consensual regulation and comprehensive on the sector or if the regulatory entity will continue as before, issuing surprise communications that force the sector to adapt overnight.

3.- The credit market will be nourished by non-traditional bureau models

The scores of credit traditional is it so very good for the system traditional, but if you want to spin fine it is important to enter new models of qualification that allow to measure better.

The new methods qualification and validation are allowing scan accurately to million person who are for outside of the systems of credit banking, which gives the possibility to many fintech from giving loans to persons that they didn’t have before access.

If you want to extend this growth engine to a non-traditional audience, you need a method evaluation chord.

4.- People will have more access to investments outside of fixed terms or purchase of dollars

With the incursion of some wallets in the world of common funds investment, more than 2 million client accounts In our country. In addition, some investment fintech companies strive to bring together agricultural projects, bonds, stocks and digital currencies, among others.

Although a little more than trust at weight and in the financial market, little by little it is leaving the fixed term and the dollar bill.

5.- Contactless payments are here to stay

In Europe, this system is already installed does years. It is common to see that shops they have the terminal on the side of the buyer on the cash line, so the customer should only support the plastic, take what you bought and leave.

There is a double transformation in the market for contactless payment methods outside the QR: while the park of terminals of the main companies that process the business of acquisition, card brands are forcing their issuers to incorporate technology contactless.

In addition, little by little he is arrivingto tokenization of the cards, making it expected start to appear banks and fintech that allow paying by bringing the phone closer to the retail terminal through technology NFC present in most smartphones.

6.- Blockchain and other currencies will be more common

Today is still strange talk about blockchain and Bitcoin, however, in the coming years it will cease to be. So, how ever having email or Facebook was strange, today it is strange that someone talks about these topics.

The news technologies generate this natural rejection, but for the experts in the subject, the decentralized system blockchain is so efficient that a future where it is not used is unthinkable.

Besides that the movement of virtual currencies is extremely difficult to Track, represent a excellent refuge before the inflation for being active independent Of value weight, so they are a shape of promising savings for Argentines.

7.- Bigtech will provide financial services

At the beginning of June, Facebook launched payments for WhatsApp in Brazil. Manzana has already released its card and others bigtech they already announced the launching of the own.

The expectation is that in the future close the bigtech start to to land in different markets marketing new products financial, leveraged by their current services and for the huge amount of user data they own.

8.- In the slightly more distant future, open banking will arrive

As technology advances and the system leaves interconnecting, are more likely to arise government initiative that they seek regulate the exchange of information.

He Open Banking consists of a system of Open APIs that allows companies connect with the Bank information and financial of users in order to use it to offer New services, as models of credit or platforms expense control.

This interconnected system seems far in our country, but it is already rehearsing a regulatory framework of open banking in Brazil. We will see when it will land here.

9.- Less and less plastic

Today, there are already many fintech companies that are implementing virtual cards. These cards allow online shopping and extractions cash through the generation of codes authorization.

This innovation, added to the payments by NFC, shows that the time of plastic begins to reach its end.

10.- International transfers will be cheaper and instant

It goes obsolete the traditional interbank system SWIFT and companies that use digital currencies or fund compensation newspapers to streamline the transaction from customers.

The traditional system is very expensive for small transactions and can take up to one week to reach destination. Thanks to the innovation and the develop fintech, these costs and deadlines are a lot more accessible.

* Alejandro Tomás Scasserra is Business Development Manager at Wilobank