Financial technology companies, innovative by nature and since their beginnings, redefined the interaction between banking and stock market players with their clients and fulfilled the latter’s dream of being the self-managers of their purchases and finances.
Fintechs tuned into masters accelerating financial inclusion and digital adoption, acting as the true protagonists of a phenomenon that has forever changed how people manage their finances.
It is a heterogeneous industry able to transform users’ financial possibilities. It has successfully capitalized on this ability, mainly after the health crisis due to the COVID-19 pandemic, which increased the commitment of society as a whole to digital channels and cashless payment systems.
Focused 100% on the client and the digitalization of their daily processes, companies found in fintech great allies to face the innovation demands of the market.
Undoubtedly, institutions consider these start-ups full-time supermarkets of support, solutions, and technological infrastructure that offer a wide range of specialized financial services and employment, investment, and foreign exchange income and contribute to a higher goal: the knowledge-based economy.
The fact that users control their finances through their cell phones shows the comparative advantages of the fintech universe compared to the traditional financial system. Paying for public service with a transfer or by scanning a QR code, accessing a loan through an app, opening an account with a selfie, and even investing for the first time with a single touch on the screen, show the technological leap the world took because of financial technology companies. The change is now permanent.
What does the market think about fintech companies? There are no words when numbers speak for themselves. For the industry, last year was very important for investment. Globally, in 2021, US$ 1 out of every US$ 5 of venture capital went to new fintech. As a result, the industry received US$ 131 billion in financing. According to a report by the Inter-American Development Bank, more than US$ 1.6 billion in investments went to these companies in Latin America and the Caribbean in 2021, and the figures for 2022 are very hopeful.
The secret of Fintechs’ reign and the reason they win over clients seems to be their resilience and ubiquity. They are very agile and energetic companies, they cope with macroeconomics with resilience and strength skills, and they prevail because they meet the client anywhere without bureaucracy.