The enterprises that provide financial services supported by technology, known as fintech. Which are key to reach segments unattended by traditional banking.
However, for Fernando Sotelino, assistant professor at the School of International Affairs at Columbia University in New York, and former banker in Brazil, these initiatives are key to increasing competition in the financial sector. But by themselves they should not be seen as the great solution for all financing needs.
The academic, who participated in the Congress of Means of Payment of Asobancaria, points out that, while the traditional bank has devoted more effort to technological development and new products, many fintech have achieved an important position to scale their business and expand the offer.
In this scenario, and although progress is being made to give clear rules of the game in the region, Sotelino believes that it is key that a harmonization is achieved between the guidelines given in each country. Which will allow these enterprises to look beyond of your local market and can attract more investment.
On the other hand, when asked about the impact of the global slowdown in Latin America, Sotelino points out that it is key that countries continue working to create stable macroeconomic environments and continue to make their financial systems more solid. At this point, he insists on a responsible growth in credit for individuals and companies and a greater competition in financing, which includes not only banking but the capital market and the fintech.
The advantage, he says, is that, with the lessons learned from volatility and the effects of the crisis, bankers are more careful. His perception is that there has been a lot of risk measurement and a concern to show adequate levels of capitalization.