Before opening a bank account, it was an extremely bureaucratic process to go to a bank branch, get a password, queue up, and get documents for evidence. Today, thanks to fintech, you can open an account from the comfort of your home, all you need is a smartphone.
The technology is evolving every day, bringing smart solutions, automating processes, creating solutions for simple banking problems such as opening an account, paying boleto, making money transfers, and more. Fintech term originates from a combination of financial and technical terms and applies to technology and innovation in the financial services sector.
Amid the pandemic, digital account openings have increased significantly as bank branches close and people conduct banking transactions through apps. As a result, many people transact in an increasingly common way, with reliability in such services, and an increasing number of technologists. Government actions, through the creation of the PIX and Open Banking, also help to take advantage of this estimate. PIX has revolutionized the money transfer and payments market, everything is fast and without bureaucracy. Market trends include technologies such as cloud computing, as a service (Banking as a Service) and FaaS (Fintech-as-a-Service) It should gain traction as users understand the benefits in terms of security and speed. The amount of investment received by the financial innovation sector has only increased in recent years. It will reach $3.5 billion in 2021, almost doubling from 2020. The continuous expansion of the digital bank, known as NeoBancos, with exclusive channels and means of digital transformation, offers services and products that meet the new demands of the market. NeoBancos is a financial company based on technology, services and products, created and offered entirely online.
Nubank is an example of fintech, one of the most well-known fintechs today, created in Brazil and gaining international visibility, a market leader in Latin America. Created in 2014, its first product was a free credit card managed through the app. Nubank has offices in Mexico, Argentina, Germany, Colombia and the United States, and employs more than 4,500 people worldwide.
The company has received several rounds of investment, so it’s just expanding and consolidating in the market. Nubank has been using new business strategies such as Beyond Banking, banks and other financial companies to provide services and products from other industries to make life easier for customers, bring innovation in providing services and products, add more and more the value of. Nubank has partnered with e-commerce such as Magazine Luiza, Aliexpress, Dafiti, and established its own marketplace. By using Beyond Banking’s new business strategy, through this new front, the fintech aims to increase the repeatability of customers using the app.
Another trend in the market is cryptocurrencies, Bitcoin, NFT, Ethereum, which are changing the traditional financial world. For example, NFT – Non-fungible Token is a digital asset that exists on the blockchain, has monetary value, uses the authentication and tracking capabilities of digital media sources such as JPEG images, music files, games, etc…
These are some of the possibilities for fintech to come into play.
Another growing system is Open Finance, which deals with the freedom to share your financial data on a voluntary basis, be it commercial, banking, financial and commercial. Sharing may involve banking services, foreign exchange, insurance, pensions, investments, etc., all of which are regulated by the National Monetary Council (CMN) and the Central Bank (BC). We realize that the fintech market is only going to grow, and there are countless business opportunities. As technology emerges, new fronts with expanding prospects are created in this vast ecosystem of opportunities, observing customer needs to make life easier, seeking increasingly automated processes that generate new market prospects.
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