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According to the IDB report, Paraguay has reduced from 5 to 2 "fintech" companies this year, referring to digital activities, which implies a significant decline in terms of the creation of financial management platforms.
The report of the Inter-American Development Bank (IDB) indicates that the rapid growth of these financial companies in the region is based on technology platforms.
They have increased 66% in the past year and now total more than 1,160 businesses. On the other hand, our country has recorded a 60% drop, with only two projects in 2018, according to the report.
Digital breakthroughs, especially phones with their mobile applications, are revolutionizing financial businesses, also known as "fintech", where payment and money transfer systems are the most demanded services by users in Latin America .
According to the report, in 2018, the countries with the largest number of finintech companies are, in order of importance, Brazil (380), Mexico (273), Colombia (148 Argentina (116), Chile (84), Peru (57), Ecuador. (34) and in Uruguay (28).
Digital platforms for payments and remittances (24% of identified companies), followed by loans (18%) and corporate finance management (15%) are the main business sector presenting the highest profitability.
Financial technologies represent the innovation of traditional financial services and involve the application of technologies in the design and / or distribution of financial services and products. The electronic purse is a clear example of this new dynamic.
In this regard, Carlos Fernández Valdovinos, an economist and representative of the Central Bank of Paraguay (BCP), recently mentioned that in a country like ours, where only 29% of adults have an account in a formal financial institution, Telephony mobile, e-wallet and mobile phone mandates represent a unique opportunity to advance the important task of financial inclusion. He noted that for this reason, the parent bank at the time had decided to regulate these procedures and that many banks are already adapting and incorporating their systems because they understand that innovation does not can be asphyxiated.
Why are they stagnating?
Financial analyst Stan Cannova lamented the stagnation of financial technology companies, despite the considerable expansion potential of our market.
He explained that this is due to several reasons, including falling cryptocurrency prices, a second reason may be the lack of regulation setting clear rules on the market and the fact that the banks themselves adapt the "fintech" culture as a management procedure, adhering to its services, payment networks, remittances and other competitive advantages from other independent companies. He finally said that the fintechs were the future and that companies had no choice but to adapt to them.
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