Argentina is the second largest producer of soybeans in the world, and China is the main importer. But this relationship, clearly agricultural, is migrating towards a "4.0" link. That is, based on investments in innovation.
The Asian giant is betting heavily on Latin America and disbursed more than US $ 90,000 million in the region over the last decade, according to ECLAC data. And Argentina is one of the main recipients of these funds.
The "financial arm" of China in Argentina is the ICBC bank, which not only facilitates credit to companies of Asian origin operating in Argentina but also has expanded its participation in key sectors of the local economy.
This is so, that the entity launched a line of credits at zero rate days ago in the framework of a "exchange plan" through which it offers the exchange of a used vehicle, of any type, for a 0km JAC brand, one of the main Chinese automakers.
The promotion "Bring yours, take ours" contemplates 12 fixed fees in pesos to pay the difference between the delivered vehicle and the new, to choose between all the models and versions of the Asian company: SUV JACS2, JACS3 and JACS5; or JACT6 pickups 4x2 and 4x4.
But now the ICBC goes for more. It has just launched a branch with state-of-the-art technology, similar to the one used by the company in China. The concept is not a "coffee bank" but aims to completely redefine the customer experience.
Strategically located in Puerto Madero, a few meters from the central tower of the bank, this branch has smart ATMs, machines that sell cards and even a small stand in which it sells everything from notebooks to household items.
"The client chooses where to be served and also how to be cared for," says Gonzalo Díaz Solá, Head of Electronic Banking and Digital Channels at ICBC Argentina.
"If you want quick attention, you can rely on technology, but if you prefer to take your time and sit down with an account officer to talk about investments or a product, you can do it too," he adds.
In this way, ICBC launches another strong commitment in the financial segment, based on its ambitious strategy of digital transformation, from which it seeks to take advantage of the Asian giant's technological production.
Inside
Internally, the brand new branch is labeled "digital full". It means that it has a sector with automated attention, commercial advisors and two "video assistants" who dialogue with the client remotely. It also has the classic services of a physical subsidiary, such as a line of windows and 150 security boxes.
The branches that have the services of automatic banking, but do not have human tellers, are what they call "classic digital".
When a person enters this new space, located on Calle Pierina Dealessi 180, the way in which it is received by the advisors also marks differences with respect to the typical reporting desk of traditional branches.
Tables high, with sidewalks on both sides, notebooks for the account executive and tablets next to the client so you can move there what you could have found on the bank's website.
"The opening of this branch is part of ICBC Argentina's digital transformation plan, called ICBC Evolución, which aims at the technological reconversion of the entity," said Gonzalo Díaz Solá. This, according to the executive, will be achieved through:
- Incorporation of open banking technologies
- Development of digital means of payment and of agile and efficient platforms
- Inauguration of branches that link digital capabilities with face-to-face
The pillar of ICBC Evolution is to accompany the digital evolution of the client and be tailored to what is needed, adds Díaz Solá. "We took this big step to try new models of care," he adds.
It is a strong bet in Argentina: it is the first country in the region that brought this technology, which in China is already used in a large part of its 16,000 branches.
The plan is to open between 6 and 7 subsidiaries of this style and convert a total of 20, so that they adopt this concept but also keep the line of boxes. Only for this space, the company invested 1.8 million dollars.
The experience
The fact that the first "digital full" branch installed in the country is located in Puerto Madero is not accidental. According to Díaz Solá, the proximity to the parent company, which is less than 200 meters away, is key to follow the evolution closely and test the feedback of this model among its customers.
In the branch there are two video assistant modules, one sheltered behind a glass door, which vanishes when a person enters to give him privacy; and another open, next to the ATMs.
There, one communicates remotely with specialized personnel to register, obtain new products, make claims and generate passwords, validating the identity by fingerprint or ID, without the need to enter passwords.
The Renaper (National Registry of Persons) is responsible for biometrically validating customer data.
Another innovation, unique in Argentina and available at this location, is the Central de Tarjetas, a team that dispenses credit cards without the need for envelopes or card-carriers.
"The machine stores up to 1,080 plastics, and each morning, when the new ones are entered, the system automatically identifies the card and sends an e-mail to the customer to let them know that they can withdraw it," explains Diáz Solá to iProUP.
In order to bring technology to the public, the branch has a large touch screen (in the style of a giant cell) in which you can learn to use the mobile application, easily, through a simulator that emulates all its functions , and download it to the cell phone.
In a sector dedicated to ICBC Mall, products from the Marketplace are displayed, while a video wall allows browsing the available options, in a new online shopping experience: by scanning the QR code, it is possible to choose the products and purchase them with discounts and in installments without interest, through the app.
Startups and digital payment platforms
As iProUP reported, Chinese capitals are also focusing on digital ventures, such as Ripio, an Argentine fintech that created a "digital exchange house" for the purchase and sale of virtual currencies through a virtual wallet.
In dialogue with this medium, Sebastián Serrano, co-founder and CEO of Ripio, affirms: "The investment round closed for US $ 2.3 million, led by the Asian Digital Finance Group, as well as the Chinese firm Fenbushi Capital."
According to Serrano, this disbursement meant a "key support" in growth and penetration in new markets, such as Mexico and Brazil.
According to James Wo, CEO of Digital Finance Group, the fund chose an Argentine startup to be part of the development of "financial solutions for emerging countries".
The final goal is clear: to expand the services of digital payments in those economies with little banking, such as Latin American ones.
"They target mainly SMEs with knowledge-based developments, a year of research, training and growth based on alliances and join ventures," says iProUP Raul Ochoa, of the Argentine Council for International Relations (CARI).
In his vision, the business model points to local developments that need scale. "They are investing in Argentine talent to exploit the local factor and add their own know-how," he says.
"Although the investments of Chinese companies are accompanied by the entire product, as in the oil and logistics industries, we see that they are betting on Argentine companies," agrees Francisco Uranga, CEO of the Argentine Investment Agency, to iProUP.
The expert provides some examples:
- "Tencent invested in Satellogic, which recently launched a nanosatellite and is inserting its product globally."
- "Huawei invested U.S. $ 20 million in a training center in Argentina"
- "ZTE did the same by contributing US $ 18 million to install a surveillance center in Jujuy".
Uranga anticipated iProUP part of what is coming: "We are setting up a mission to China, in conjunction with ARCAP, to see potential investments in Argentine companies in the embryonic phase, and to create funds for the development of venture capital."
"Argentine talent is recognized worldwide for its entrepreneurial spirit, and the Asian giant values what is being done locally in science and technology."
"Investments are growing, in some areas faster, in Fintech we see tremendous potential, since China has a very developed ecosystem, also in agtech, due to the enormous agricultural and technological possibilities. interesting part ", completes.
Electronics and household items
Radio Victoria, Argentine company located in Tierra del Fuego, which is dedicated to the production and marketing of electronics and appliances of international firms such as Hitachi, IBM and LG, agreed years ago with the Chinese TCL to manufacture and market their products.
For a few months, they have been operating together under the name Radio Victoria TCL Argentina. "We agree to go a step further, since we understand that it is the only way to be more efficient, lower costs and compete globally," he explains.
The agreement solidified after a major investment by TCL, the third-largest television manufacturer in the world: US $ 25 million to acquire 15% of Radio Victoria. A bet that, according to Jurkowski, was more strategic than financial.
"Today we have very specialized Chinese technicians who work in the factory in the development of products, processes and optimization of assemblies, see the needs, provide knowledge and ask for the resources that are needed in their country," says Jurkowski.
"We have knowledge of the domestic market, the factory, the customers and how to navigate in the midst of economic instability and the uncertainty of the dollar." To be global, you have to be local in each place, "concludes Jurkowski.
China is not only attracted to soybeans. It also bets on the local banking sector and entrepreneurs, knowing that in Argentina there is "gray matter" to grow in the region.
