The Inter-American Development Bank (IDB) has made the first report on the Argentina fictitious market. The study allows to monitor the role of these companies in the local financial ecosystem and to accurately map the potential of the sector. One of the interesting data is the participation of technology and finance companies in the different areas of activity. 24% of companies are engaged in offering online credits, 20% are using digital payment tools, 20% are b2b, 11% are developing investment applications, 8% 8% block and cryptoactivity, 6% buyer and 3%
The document highlighted the potential of these companies for the coming years. "Fintech in Argentina creates a new paradigm in terms of experience and access to new financial services, reinforced by changing customer behavior and backed by new business models that use innovative technologies, thanks to this new fashion of products and services. number of Argentinians receive more and better financial services, "the report said. He stressed that it is beginning to see how access to people excluded from the traditional banking system is expanding. The document states that "charging and investment levels, regardless of their growth, do not reach the values observed in other ecosystems in the region, which reinforces the idea that the activity is still at an early stage and has the potential to develop."
Argentine Fintec IDB's analysis was developed jointly with Afluenta, one of the industry's most prominent companies and Accenture. It was also backed by the Fintech Army. "The efforts of the industry as a whole have put Argentina on the map of this entrepreneurial segment that makes the world speak," said Alejandro Cosintino of Affluenta. The study highlighted that 52% of companies will invest more than $ 1 million in the coming years and 75% will replicate their business in other countries in the region. Eight out of ten companies believe they will start paying more than $ 500,000, and six out of ten think that in 2021 an increase in platform users will be accumulating more than 100 per cent in terms of the current base.
One of the points that worry the sector is that of the regulations. The report states that there are currently no specific provisions that fall within this activity. "In Argentina, for the time being, the position is unanimous and clear: they do not regulate Fintech's industry." The representatives of the companies assure that it is necessary to observe the basic elements contained in the Civil Code and the National Constitution. The Central Bank has decided that the sector is so small for now and does not pose a risk. The monetary authority considers that the objective is to promote growth and then to assess whether it is necessary to apply some kind of regulation or regulation specific to the action.
Gender equality was another point that did not go unnoticed in the report. It was mentioned that hiring women in the sector is undoubtedly one of the great challenges. Activity benchmarks ensure that there are few women with Fintech know-how but mainly in systems and programming. This means a lack of balance in development teams.