"If they want to have the same benefits of a fintech, then arm one," was the sharp response that he gave to the country's leading bankers, who demanded that the government flexibilize the requirements for the technology companies that provide financial services.The author of that phrase is none other than Federico Sturzenegger, who was in charge of the Central Bank from the beginning of Mauricio Macri's administration until less than a year ago, when he was succeeded by Luis "Toto" Caputo, first, and Guido Sandleris .During his tenure, along with his vice-president Lucas Llach, the advancement of the fintech was privileged, a sector that had only a handful of companies but that began to grow strongly since 2016. Even a year later, it happened to have a camera ownAll the bankers' complaints pointed in the same direction: as they were not regulated by the BCRA, unfair competition was generated in favor of these new companies.Since then, there are more than 133 firms that grew in the heat of some key decisions that the BCRA launched at that time, among which are:- To be able to operate without too much control of the monetary authority, as they are not covered by the Law on Financial Institutions- The inclusion of the Uniform Virtual Key (CVU), the 100% digital version of the CBU, to enable transfers between bank and fintech accounts- Enabling digital payments through virtual wallets (QR codes) and devices to read cards from the cell phone- Immediate Debit (Debin) for free and instant money transfersThe management of Sturzenegger aimed to reduce the use of cash and, most importantly, the fintech can add to its customer base to 50% of Argentines who have not yet been banked.His conviction about the outstanding role that the new digital companies will have is such that "he paid attention to his own recommendation", the same one that he had shared with the bankers, back in 2016: he ended up betting on a fintech.Specifically, the one that operates under the name "Findo", dedicated to offering loans through the cell phone and that has just been purchased by the Latus View fund, of which the former Central banker is a member.It also offers "white label" applications: any bank can, after paying a fee, use this app to give loans to customers who are outside their traditional business (unbanked). In other words, it gives traditional entities the possibility to obtain a "turnkey" service.The big question then is which one of them has already agreed to the use of this application. The answer is easy: the City Bank, which was commanded by Sturzenegger when Mauricio Macri was head of Buenos Aires Government.Fintech with expansionThe new acquisition of the Sturzenegger fund aims at financial inclusion, one of the foci of its management at the head of the BCRA. In fact, it offers loans to all those people unable to receive financing in traditional institutions, due to lack of credit history."There is a strong demand, according to the World Bank, only 7% of the population has access to a loan," Diego Varela, CEO and co-founder of the firm, told iProUP, together with Ignacio Ortega, who met at the Banco Hipotecario. . Later, four other partners joined.Three years after the foundation, the company began looking for investors to scale its business in the region. They met Gonzalo Lissarrague, a partner of Sturzenegger in Latus View and former Global Growth & Operations of Thompson Reuters.Thus, the former number one of the Central Bank saw the opportunity: to bet on a fintech that required funds to leverage its expansion in Latin America after achieving good results in Argentina, largely thanks to the regulations it issued while outlining exchange and exchange policies. inflation goals.According to Varela, Findo has a growing business in the domestic sphere, with important figures for a fintech that flies below the radar of the maximum monetary entity:- More than 200,000 users- Loans for an average of $ 20,000 payable in 9 months- A repurchase percentage of 73%, higher than 50% of the traditional market (users who request credits again)- Interest rate of 87%, against the 80% handled by Banco Nación itselfBeyond granting credits to end users (B2C model), it also offers the app - along with the credit analysis - to other financial entities (B2B)."We have several clients under our white label service, aimed at the public that does not go to the banks," remarks the manager to iProUP. Among those customers is Telecom (for mobile financing), Banco Macro and CrediExpress. Also the City Bank, to whom the "Microcredit City" application is offered."We do this through an agreement because the entity has a great interest in giving micro-credits to small businesses or entrepreneurs that have a hard time making capital, and we help them take credit directly from their cell phone," he explains.The conquest of the regionLatus View's fresh funds appear at a crucial moment for Findo's internationalization interests: the arrival of a strong player, which brings a very successful and proven model in a market that - like the Latin American one - shows a low level of banking ."Our competition is Tala, which developed very strong in Africa and does a non-traditional score, from there they climbed to Africa, Asia and now they came to Mexico, we want to be the Tala of Latin America," says Varela.In effect, the company has already started international expansion: they are operating in Paraguay and closing agreements with financial entities in Uruguay and Mexico. They also plan to join the most used wallets in each country to continue growing, as they did in Guaraní lands with Tigo Móvil."This type of product works very well with a virtual wallet, because everything is resolved there," says Varela, who adds: "When we started developing three years ago, we knew there would be many, but we will bet on the 'winners' , like Mercado Pago. "According to Varela, the capital injection of Latus View "will be used to improve the credit rating by taking advantage of the large amount of information available."In this regard, he advances that they will hire five data science experts and 10 software developers to improve their algorithm, generate more accurate profiles and offer credits to more and more people.Like all fintech, its greatest potential is placed on the development team, led by Daniel Negrotto, technology manager (CTO) and co-founder of Findo. He is one of those responsible for artificial intelligence that allows analyzing risk in a different way than traditional banks.Like other companies in the sector, Findo performs onboarding (client registration) completely digital: for this, not only asks the user for their personal data, but also photos of the face and your ID to corroborate who is who they say they are. Then follows the "magic" of the firm that grabbed the attention of the fund led by Sturzenegger.Explosive ecosystemThe Argentine fintech sector will be this year of a battle of unicorns. On the one hand, Mercado Pago, the most important company in the sector in Argentina. On the other, Nubank, a Brazilian startup that is the largest digital bank in the West.It is about Nubank, the 100% digital bank that was born in Brazil and that already formed its society to operate in Argentina. The unicorn carioca is worth $ 4 billion, after China Tencent, considered the fifth largest technology in the world, will spend $ 200 million.The company has already established its partnership under the name Nu Argentina, domiciled in Tucumán, 1st floor 4th. As confirmed iProUP, Rafael Soto, former financial manager (CFO) of Wenance, will command the local branch of Nubank and even modified his profile of Linkedin with the new company in which he works.The activities to which Nubank will focus in Argentina are varied. Your business plan contemplates:- Issuance of credit, debit and prepaid cards- The launch of a payment platform with QR Code- The granting of credits to the banked and unbanked- The management of virtual accounts (savings accounts)- The presentation of a system of transfers between bank and virtual accounts- The launch of mutual fundsTo fight against a "heavyweight" like Mercado Libre, Nubank will not be alone: ââit will leverage Tencent, one of the main global bigtech, which has 1,000 million users in China with WeChat, a platform that has the functionality of Facebook and WhatsApp.It will also market the fintech services already used by nearly 800 million Asians. What's more, WeChat Pay, its payment system with QR, was the "source of inspiration" for Galperín's company to launch this modality that is growing at Chinese rates. For just over six months, Nubank has offered this service in Rio de Janeiro.The giant fintech will be present in the country with something that already knows that Argentines love: promotions and aggressive discounts in different areas, to battle against Mercado Pago.The strategy of the Brazilian giant will be based on the following pillars:- Cut commissions to businesses and give rebates to consumers in purchases with QR- Offer interest-free installments for the purchase of a wide range of products- Strengthen your "Nubank Rewards" loyalty program with great appeal: your points will never expireIn this way, the Sturzenegger fund prepares its first movement within an ecosystem that will consolidate and even host international players. A market that nobody wants to stay outside, not even who was crucial in establishing the rules of the game.