In the last decade we have witnessed the evolution of the ventures and how technology has revolutionized the way in which citizens began to consume different financial products and services, opening the door to several platforms and models that help the society.
A clear example is the Fintech companies, entities that rely on technology to provide services and financial products. Probably, one of the most important actors in this sector is crowdfunding or collaborative financing, which has contributed USD 150 million to our country in 2017, according to the “The 3rd Americas Alternative Finance Industry Report” of the University of Cambridge.
A positive impact
This model has had a profound and positive impact in democratizing access to capital, for the benefit of thousands of entrepreneurs in Chile, who are key drivers for the development of the country and who would disappear when they were not considered by the traditional financial system.
The benefit of crowdfunding translates into lower financing costs and, at the same time, allows new investors to bet on ventures with attractive rates of return. In parallel, when accessing loans with lower rates, SMEs can allocate capital to improve their businesses or generate savings that allow them to explore new projects. That is, a virtuous circle is generated.
The relationship with payments
In addition, in platforms such as Cumplo there is a record of compliance with payment – a kind of LinkedIn of companies – that allows highlighting and rewarding the good payment behavior of entrepreneurs, and thus opens up opportunities to apply for new financing.
For all the above, the contribution of Fintech to the digital financial ecosystem still has a lot of potential. The challenge now to support the development of this industry lies in having a regulation in Chile according to the new times and always thinking about the benefit of people.