The Argentine fintech market exploded in 2018 with the arrival on the market of companies such as Wilobank and Ualá, and the confirmation of other projects such as Brubank and Openbank, the bet of Santander that already has a date of arrival in the country.
To this segment in frank ascent will be added from March Transatlantic Group, hand in hand with its digital platform Rebanking. Strictly speaking, it is an evolution of TSA Banking, the company's system formed after the purchase of Multifinanzas, a firm authorized by the Central Bank to provide financial intermediation four years ago.
With an investment of u $ s15 million, the conglomerate of tourism, financial and real estate services companies seeks to step up strongly in the face of a central moment in the development of the digital banking industry.
It will not be easy, since the big players of the sector are considering different alternatives to snatch a portion of the cake. However, he has plenty of weapons to get into the big fight.
As is already the norm in this segment, the platform will be operated in an entirely digital way through an application on the phone or from the web (Mobile and Web Banking), without the need to attend a physical branch at any time.
In this way, users across the country can be 100% online from a bank account without opening or maintenance cost, make transfers and payments for services, ask for credits, set fixed deadlines, buy dollars and access a card of credit and debit, among other services.
A differential aspect of the Transatlantic Group proposal is its association with American Express, which will land in the Latin American fintech market with the help of Rebanking.
In dialogue with iProUP, Stefano Angeli, CEO of the entity, reveals that AMEX "wanted to choose a bank to support and advance its landing, after a market analysis, we chose, since the acquisition of customers is a fundamental aspect in the industry".
In this sense, he adds: "They saw in us a great potential to start operating since in Transatlántica we have great alliances with the tourism sector".
The proposal is completed with MasterCard, which will be the other partner of the "startup" for debit and credit cards. In addition, it will operate through the Banelco network.
While the application and the website are now ready, the official launch should wait until the end of the first quarter. Angeli explains that the approval of the suppliers still remains, since Prisma will be your partner in terms of cards. As regards transfers, they are working on the fine-tuning of ATM networks.
A fintech "for fintechs"
Rebanking was designed for both end customers and small and medium businesses. The executive clarifies that "being an app, you can download any Argentine."
In this regard, he states that "the only requirements are: to be of legal age, an Argentine citizen and to present the necessary documentation." The process is simple: through the cell phone a photo of the identity document is taken, a selfie, the address is entered and the data is validated with a gesture.
A niche where it aims to make a difference is that of SMEs, since they will have a proposal to add financial solutions to their digital platforms.
The company clarified that they will maintain "the interpersonal relationship that this type of segment requires".
In this line, it will function as a service platform for entrepreneurs, developers and companies to leverage their business and integrate different options for their own clients.
"For example, an eCommerce can offer financing plans through our platform," the executive points out: "A fintech that does not have the capital to lend money can take advantage of our liquidity to provide loans."
For Angeli, the coexistence with the sector will be "collaborative and non-competitive"; therefore, it sees no inconvenience when it comes to operating as a "fintech for fintech".
The statements of the CEO of Transatlántica to iProUP are in line with what was his announcement of presentation, released days ago, in which he had assured that the objective is to "reinvent the industry together with the other players in the market, seeking to offer a different service focused on the client, more efficient and with arrival throughout the country. "
As is the case with the rest of the fintech ecosystem, the main obstacle to overcome is the delay in terms of bankization and modernization of the local structure, in comparison with the rest of the countries in the region.
With 110 employees and a platform that promises to have a presence throughout the country, thanks to its network that spans hundreds of cities and shopping centers, Transatlantica bets for Rebanking to become strong in a year that will be marked by the strong expansion of the sector .
"The big problem to overcome is financial education, since Argentina's banking level is low," Angeli concludes, "is not just a challenge for the entire industry, but for the entire country to move forward on this point."
Digital banks, in sharp rise
In Latin America, the number of ventures linked to platforms offering financial services grew 66% and consolidated as a booming sector, hoarding 25% of investments in information technology.
The data belongs to a report of the Inter-American Development Bank, where Argentina stands out in fourth place in the region, with an increase of 61% in 2018.
The number of countries in which such ventures are present also increased, going from 15 to 18. Brazil, at the head, continues to be the nucleus of the region with 380, while Mexico registers 273, Colombia 148, Argentina 116 and Chile 84.
At the local level, almost all companies can be categorized as SMEs: 80% have less than 50 employees and their billing rates coincide with those of this type of organization.
The ecosystem is in a growth phase, marked by the adoption of new technologies and digitalization, which is gaining strength in the country.
Proof of this are some of its numbers: it registers an annual growth rate of 110%, already employs almost 6,000 people directly and more than 90,000 indirect according to the latest records of the entity released in September.
On the other hand, the industry received foreign investments in the last year and exported services to other regions of Latin America, with a total volume of transactions of US $ 6,000 million.
For example, in the three recent rounds of capital, the Fintech Moni raised US $ 4.5 million from the World Bank; while Ualá got US $ 34 million from Goldman Sachs and Soros. Meanwhile 123Seguros received US $ 3 million from Alaya Capital and the Mercado Libre investment fund.
Despite the distrust generated in some areas by the Fintech sector, analysts say that the potential is enormous.
"We are the fourth ecosystem in Latin America, if we take as a reference the size of the local market, Argentina has a disproportionate amount and quality of fintech entrepreneurs," Alejandro Cosentino, member of the Argentine Chamber of Fintech and CEO of Afluenta, told iProup.
For his part, Juan Pablo Bruzzo, president of the Fintech Chamber, assured iProUP: "The banks look at the number of branches, we replace that with cell phones, where there is a cell phone, there is a fintech service".
In Argentina, according to the Global Findex, 49% of the economically active population does not have a bank account. And according to a report by consultancy Deloitte, 91% of people have a cell phone.
The data invite to dream of a sustained growth of the sector. With players and customers joining day by day, everything indicates that they have the necessary support to overcome the local crisis.
