In the last 30 days, the tension between fintech and banks reached its highest level with the criticism of traditional banking, first; and with the sector guild leader, later.The Association of Banks of Argentina (ADEBA), which brings together local capital entities, had left in mid-June to ask for greater regulation of the technology offering financial services.
The attack was answered by Osvaldo Giménez, vice president of Mercado Libre, who used the hashtag #NoLoHizoUnBanco to highlight the achievements of fintech, such as the advantages of QR code payments, cheap credit to SMEs and individuals and the possibility that neighborhood businesses accept cards, among others.
The second round was staged by Sergio Palazzo, leader of the Banking Association, who overheated the long weekend by warning that he would join "by good or bad" the nearly 6,500 employees of this emerging sector.The Fintech Chamber and Mercado Pago went quickly to the crossing repudiating the violence of their statements. Even the CEO of the unicorn, Marcos Galperín, said on Twitter that he only needed to fight with the Conmebol, taking advantage of Lionel Messi's sayings by questioning the honorability of the governing body of South American football.
While this confrontation continues adding chapters, parallel - and very quietly - burst onto the local scene a new player of weight: Rebanking, Transatlantic Group, which started its operations and wants to kick the board fintech with a wide range of services .
In this way, it joins the select club of Argentine digital banks -that is, approved by the Central Bank- which until now only included Wilobank, the businessman Eduardo Eurnekian, and Brubank, founded by Juan Bruchou, former president of Citi .
As far as iProUP could confirm, Rebanking points to two very clear objectives: reach the unbanked (one in two Argentines) and become strong in the segment of independent workers. That is, almost 2 million Argentines among:
- 1.57 million monotributistas
- 393,000 self-employedIts competitive strategy aims to monopolize this extensive universe with proposals that contemplate packages of services designed to develop their activities at a much lower cost, saving commissions and bank charges.Competitive strategy
One of the differentials of Rebanking with respect to other fintech is that they only focus on the unbanked, but they strongly bet on the segment of independent workers.
"We are closing some agreements with related to transfers from abroad, because several independents receive payments because they are service providers, such as designers, programmers and even accountants," they say.
The company already has PagoMisCuentas operating, the service for the payment of services. At the moment, a window of the Prisma platform site opens, but Rebanking is integrating it natively in the app for a more fluid experience.
Also, they are working against the clock a feature of great utility for monotributistas and autonomous: the connection with the payments of the AFIP. "It requires a particular development and we will have it ready as soon as possible," they say from Rebanking.
Another point in favor of this segment is that the credit cards that will be launched shortly will have a specific proposal. "We are negotiating with coworkings to have benefits in the memberships, discounts in credits to use services, etc.", anticipate iProUP.
Finally, the company states that they prepare financial education modules that will be carried out in coworking spaces or through the virtual university Siglo21. In this way they seek to train entrepreneurs in the use of financial services and how to make the most of them in their activity.Launching
After several months of recruiting clients through a waiting list, the Rebanking application made its debut with a campaign that will go from low to high. In August, they say from the signing, communication in the media and social networks will begin to be felt quite strongly."We launched in a soft way, with a lighter marketing campaign for the first rebankers (as they call their clients) who had signed up, the previous weeks we did tests on a limited target of people," they say to iProUP exclusively from the company .
Rebanking offers a savings account linked to a Uniform Banking Code (CBU), as well as traditional entities, instead of the Uniform Virtual Key (CVU) used by fintech.
This is because Grupo Transatlántica already has authorization from the BCRA to operate in the market since 2016, when it acquired the multifinanzas financial company. Equally, it is homologando the CVU to launch it soon. The accounts remunerate the balances with an interest rate of 30% that, according to iProUP from the company, will be available until mid-July.
This benefit is already offered by the digital bank of Eurnekian and also by Mercado Pago, in the latter case, tied to the returns of the common funds of the BIND.
In addition, Rebanking provides a savings account in dollars that can be used not only to receive transfers in that currency but also for the sale of currencies, a function that Brubank is already proposing and that Wilobank will introduce shortly. "We have the most competitive quotation in the market," they say from Rebanking.With regard to the extraction of funds, the company's positioning plan includes the launch of a card together with MasterCard. However, there are a number of benefits for which there is no need for plastic.
"We go for the digitalization, for example, you can send money to a relative or friend with the ID and pass a code, with which you can make withdrawals at an ATM," they say from the virtual entity.Complete package
One of the differentials proposed by Rebanking is its offer of banking services, with a greater number of options and at zero cost, with the exception of several "premium" services. The main one is related to plastics."Our credit card will be American Express, which chose us as its first financial services platform in the region," they celebrate from the firm and adds that it will have all the plastic presentations.
Although the green color is free for all rebankers, the company clarifies: "We also have Gold, Platinum and Black through the payment of a monthly membership, but no renewal or maintenance fees will be paid". In all cases, the card can be processed from the app.
By the end of the year, the company will have a credit MasterCard in its product portfolio, which will also have a free version and the three "premium" presentations. With both brands, they will have contactless technology.
But there is more. It is also working in conjunction with the signing of the two circles to present a prepaid card in society, which can be topped up and used to pay digital services such as Netflix or Spotify.On this last point, it is similar to the one offered by Ualá and Mercado Libre, for example, for users who do not qualify for a credit.
However, Rebanking aims to distinguish itself from the rest of the fintech in the sector by having two brands of plastics in its portfolio (almost all the companies in the category have only Mastercard plastics, such as Wilobank, Ualá and Mercado Pago, while Brubank operates with Visa).
Another product that already offers - and that are not available in the banks of Eurnekian and Bruchou - is the assembly of a fixed term from the app: "It is available and provides a rate of 60% per annum", remarked from the company.
In this way, they are located above the 55% granted by traditional entities after the BCRA allowed banks to offer this tool to non-clients.Target
Beyond the unbanked public, to which all fintech points, from Rebanking they assure that it is a proposal "for all", that "accompanies" from the student and the family, to the person who likes technology and wants of learning"."We are aiming for a fairly federal strategy, as the Interior is relegated, we will tread strongly throughout the country," the sources said. For this, your roadmap is based on central objectives:
- Get the best rates and the most convenient dollar price for users
- Be a "customer centric" and keep your application in a state of beta (tests) permanent
- Attention to premium rebanker (customer) in a personalized way according to your profile, tastes and preferences
On this last point, the company has in folder a product specially designed for independent workers and entrepreneurs.
As for the unbanked public, the expansion plan in Argentina includes a program on financial education that will be accessed from the app. In addition, "content strategies, workshops and other actions to build loyalty and generate proximity" will be exhibited.
"We are an application, mobile first and mobile only, we want to help a good part of society to improve its credit life, its relationship with banks, teach them how to save and invest," they reveal.Strong competition
This year, the initial kick-off to strong competition between traditional banking and fintech has been added, to which the Brazilian digital bank, considered the largest in the western world, has joined.As advanced iProUP exclusively, Nubank will not perform financial intermediation (ie, use depositors savers to lend to credit takers), so it will fly off the radar of the BCRA and will be dedicated to:
- Issuance of credit, debit and prepaid cards
- The launch of a payment platform with QR Code
- The granting of loans 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 funds
According to this list, although it could be a competitor of digital banks, its main rival will be nothing more nor less than Mercado Libre.
Marcos Galperín's company is not only the most "expensive" company in the country, with a stock market value of more than US $ 31,000 million, but it is also the most important fintech in Latin America.
In this framework, Nubank will try to take away the share from:
- 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 Argentinean fintech ecosystem is strengthened, which already reaches 217 according to data from the chamber of the sector. Of that total, 58 (almost 30%) is dedicated to offering loans. Behind are located:
- Digital payments: 39 companies
- Technology Providers: 29
- Blockchain and crypto: 25
- B2B services: 21
- Financial management: 18
- Collective financing: 16
- Insurtech: 7
- Cybersecurity: 4
Progressively, the offer of fintech is increasing in number of services and making the operation cheaper. On this path, it forces banks to restructure their business to compete against a segment that overwhelms with its ability to change.