"It's a long-scheduled meeting that takes up respecting the original spirit that it was to get to know each other, start talking," they entrust iProUP from the fintech sector, which this Tuesday meets at 4 pm, if everything happens as planned, with the president from the Central Bank, Miguel Pesce, just arrived from a meeting with his peers from other countries in Basel, Switzerland.The industry will be represented by the directive commission of the Chamber, composed of Juan Manuel Bruzzo (Moni), Alejandro Cosentino (Afluenta) and Martín de los Santos (Mercado Libre) at a time of some tension after the agency advanced with measures without that mediates any contact or consultation with the sector.
The monetary entity comes from stipulating that virtual wallets must now have their funds in sight accounts in pesos in entities of the country and, in addition, available immediately and for an amount at least equivalent to that accredited in the account. The decision was received, however, with some relief, as much more aggressive regulations were being considered, such as iProUP anticipated.
"We are not going with a specific agenda. The idea is to be a presentation," they say from the companies, which also face the new conscious management of the weight and mass that they gained in recent times and their fundamental role as interlocutor to expand inclusion financial and lower informality, an objective that also excites the new government.
Until now, there was only a first informal approach, which included the entire technology sector, to take note of the concerns and work on an agenda for the coming years, after a management in which much support was given to the innovation. This will be the first official contact of the chamber with the authorities.
"There was a meeting with Alberto's technical team that we went to as a sector. They met with different industries to learn about the situation. It was a good meeting that served to talk about challenges, opportunities and clear doubts," Jacobo Cohen Imach tells iProUP , senior vice president of Mercado Libre.
According to the executive, the invitation did not have a particular approach from either party. "It served above all to approach us. The fintech ecosystem is very diverse, but what unites us is the vocation of financial inclusion and I think that what matters most is that," he remarks.Cohen Imach admits that they clarified to the new government that they do not compete with traditional banking, but that the new digital financiers complement each other.
"The main objective is to continue democratizing money, see how to generate many more credits and thus formalize the economy. We reach an audience and meet needs that banks do not, for various reasons, from regulatory to scale. Alberto in his speech spoke of non-bank financing. There you realize that it is an unmet need, "he says.
IProUP also anticipates the company's position on regulation, on which there are several views in the industry.
"It has to bring clear rules for everyone: entrepreneurs, customers and the State. It is essential that the development of new businesses is not curbed. The risk is that the Central Bank regulates applying all the same principles," warns the executive, who highlights two Models that followed in the region:
- "There is that of Brazil, of letting the industry grow and accompanying it. In that country rules were established that established certain limits, but at the same time the size of the entities was contemplated
- "The experiences of Mexico, Chile and Colombia, with very conservative central banks and rigid standards that tried to regulate the industry before it grows. There, the entrepreneur chooses to go elsewhere. Overregulation ends up making it difficult for the population to access services "
He adds: "Another option is to create what is called a safe harbor that establishes what is financial intermediation and what is not. We understand that what we do is not and, therefore, we should not be regulated by the Central Bank."Different looks
"We had contact with people from the Callao Group," Alejandro Cosentino, CEO of Afluenta, confides to iProUP, who says that not only fintech companies were called, but also related to the knowledge economy, communications and the technology sector in general.
"The executives of Mercado Libre, the president of the Fintech Chamber and I attended, as well as vice. Also Rappi, Facebook and other technology. We basically did a survey of things to do and where you have to work," he adds.According to Cosentino, during the previous government "a lot of work was done with the Central Bank", especially with the Innovation Board that was created in 2016 and of which it has been a part since then.
"It was a great space for collaboration, a good place to get to know each other and get in touch with authorities, banks and consultants. Federico Sturzenegger had proposed to eliminate cash and increase the use of payment methods. In parallel, to the dismantling Prisma , the business was demolished, "he reviews.
According to the manager, "the vertical credit is very important and there is a pending issue", although he emphasizes that it is his personal opinion, because in the chamber there are different positions.
"I think it is better for fintech to be regulated. That gives certainty. It allows investors to search more easily, as there is no regulatory risk. Because innovation is expensive," he explains to iProUP. However, he says that "it is essential that banks are regulated as banks and, as in the region, fintech are regulated as fintech."
"It is a different business, they are smaller, progressive regulation is necessary as you grow up. In Mexico, where I am now, for example, new adjustable figures were created. We enter the category of 'collective financing institutions'', Cosentino says.
In Brazil they are regulated and Peru is in that process. In Mexico I participated actively and I can say that the regulator did a great job. He made us complete surveys and knows us perfectly well. They also circulated the draft regulation in the industry and listened to our suggestions, although not all were accepted, "he shared.
Cosentino says that other companies are afraid, which is understandable. "They say that when the state regulates, it breaks them. They fear that it will not be done according to business and size. That would kill companies," he says. However, he assures that the firms in the sector "would embrace a regulation if it is good" and emphasizes: "Here we are all in the same boat and that's the important thing".
"I have the expectation that we will go forward. What has been done so far is good but it was almost all in the means of payment. There is much to be built so that Fintech can lend to those who need it," he concludes.Improve the CVU
After Ualá secured an investment of US $ 150 million, Pierpaolo Barbieri, CEO of Ualá, met with Alberto Fernández and presented him with the firm's financial inclusion task. Since then, it maintains a positive look on the future of the sector.
"Our expectation of growth is very optimistic. With our new products we hope to attract many more Argentines to the platform, which increasingly do more in Ualá: from investments to preserve purchasing power to payment of services and recharges," he tells iProUP.Barbieri says that in the company they believe "in an open, inclusive and transparent system", which is why they celebrate the interoperable standard of CVU, the equivalent in fintech to the bank CBU. "The only thing that needs to be done is to improve it so that more and more people can use it well. That is why everyone has to be added, as the regulation requires," he emphasizes.
In addition, he notes: "We are regulated, but we are not a bank because we do not do financial intermediation. It seems sensible that those who lend user deposits have supervision. We do not do so because we always operate with 100% reserves."Tax"We do not have regulatory inconveniences since the businesses in which we intervene are clearly supervised," says iProUP José Vignoli, CEO of InvertirOnLine. However, it ensures that this issue must be worked on to avoid inequities.
"Today, a client account opened in a stock market app is not taken by the provincial and national entities as the client's own. So, if you transfer it to your bank, Gross Revenue is withheld. We are investing a lot in technology so that the user has the best, and that the account is not taken as a mirror account plays against us, "he warns.
Vignoli rescues that "within the framework of the innovation table of the CNV some very good measures were taken, such as enabling the possibility of transfers from digital wallets to sites like ours without going through the bank thanks to the CVU". Regarding what is coming, he says: "There are many advances that are being made that are at an unstoppable point, not only in the country but also globally."
"There are many people who were marginalized from the system or accessed services of poor quality or bad price and that are going to be incorporated as solutions of various kinds are emerging. This is something that is very useful to Argentina, which has a level of informality so high, which threatens the collection. And the intention of reducing the deficit, "he says.In addition, he points out that the work of digital financial companies "is important in light of what seems to be the imprint of the new government in terms of expanding consumption."
"Fintech can contribute to financial inclusion more than banks, either by structure, niche or level of risk they can assume. And this beyond the current complex situation, because it is clear that growing again is not something that goes to happen from one day to the next, "he adds.2020 Dialogue
The fintech sector has been growing explosively, even in these hard years. Mariano Biocca, general coordinator of the chamber that groups the companies of the sector, assures iProUP that two years ago, when the institution was created, a first survey was carried out and there were 133 companies. Today there are 223, encompassed in an umbrella of enormous diversity and many business models.
"Both in Argentina and in the region, a large percentage of the population is underserved in their financial needs. Through technology you can achieve capillarity to reach those people. It is a goal that has no political flag. Financial inclusion is also closely linked to financial education, which is essential, "says Biocca.According to the manager, the entity worked hard "in the Fintech Task Force of the CNV, something like the mirror of the innovation table of the Central Bank."
"Basically, we focus on developing a regulatory draft for peer to peer lending (loans between individuals) and the possibility of creating a regulatory sandbox (test environment) for innovation to develop even within certain limits," he adds.
In this way, Biocca advances that the institution is waiting for "2020 to start to make us available to the new government and work together in open and inclusive systems."