On May 2nd, ABES promoted the meeting to launch the Fintech Committee, which will be led by Carlos Augusto Oliveira, from Certdox. The committee's objective is to promote dialogue between fintechs, associates, the market and the government, aiming to encourage growth, innovation and strengthening of the fintech market, in the face of the main regulatory, tax, operational and macroeconomic challenges.
“We understand that ABES can make a significant contribution towards externally forwarding demands to government bodies to reduce excessive barriers. Internally, we can structure services that can help and solve common demands in the sector, such as training, qualifications, partnerships with service providers, synergies between associates, among other activities.”, points out Carlos Augusto.
Although the driving force is innovation, fintechs have to deal with the strong regulatory environment of the financial market and with the challenges of providing technology to develop their models, which means overcoming the shortage of technology manpower, obtaining incentives to boost investments in innovation and the major bureaucratic and governance obstacles imposed by the market, even for companies that are still incipient.
What are fintechs
Fintechs are startups in the financial area that use technology intensively to offer specialized services, with various benefits both for users and for the financial system of the country as a whole.
“There is an emphasis on digital banks, which are an alternative to traditional banks, but we also have relevant solutions in payment institutions, which facilitate the payment processes of people and companies. With their digital portfolios, they simplify cash flow management many times, connecting other business verticals, such as Retail, Accounting and Billing Offices and Digital Platforms, in general.”, explains the leader of the Fintechs Committee.
Different fintech models
He also explains that relevant digital credit models have emerged, the so-called Digital Credit Societies (SCDs), which generate agile credit solutions, without bureaucracy and, many of them, with reduced rates because they have more efficient models. “ANDI would also highlight the BaaS (Bank as Service) which are infrastructure fintechs to enable the provision of financial services to an industry that does not have the infrastructure and authorization to do so directly. They can formalize and register contracts, generate funding for financing, process operations, among other activities.”, he completes. It is a relevant segment with hundreds of startups in operation with continuous growth of new and diversified initiatives.
Fintech: promising market
The fintech market is one of the most promising and has attracted a greater volume of investments, given its size, as every society in some way needs and uses financial services. “It is a market with enormous potential for transformation and value creation, since it is about disrupting a segment that is very concentrated in large banks, traditionally with many demands and distrust of the population, due to high rates, in addition to fees and complex contracts and difficult to understand, that is, in general, a sector in need of more friendly solutions designed with a focus on the specific needs of customers”, concludes Carlos Augusto Oliveira.
