The influence of the FinTech segment in the global financial market has grown significantly in recent years and national financial institutions are accepting the potential of new technological developments as a source of innovation. More than 80% of Argentine financial institutions expect to expand their partnerships with FinTech and increase their internal efforts to innovate. Half of the organizations in the financial sector in Argentina are already associated with a FinTech technological development. Companies in the country allocate around 23% of their annual turnover to FinTech-related projects, expecting to obtain an annual return on investment of approximately 26%.
Physical branches will continue to exist but must be converted. A more efficient local support focused mainly on technology, where digital channels will be essential for the interaction of all actors.
The way of working in FinTech will require a new search profile focused on new technologies and innovation. A talent that is difficult to find, which will be a challenge for banks as well as FinTechs.The speed with which the financial industry can adapt or change in the face of new technologies and the capacity and flexibility with which Banks and Fintech do so will be the key to the future. The relationship between both sectors will be marked by collaboration and competition, depending on whether they are integration models in the value chain or the offer of financial products and services. But something is almost a fact: the industry as we know it today will change towards a new ecosystem between banks and fintech, with new business models and integration.
Today’s consumers are more sophisticated and also demand more tailored products. Financial entities will tend to become facilitators. In this integration process between Banks and FinTech, there are cultural challenges, such as problem solving and decision making. The financial industry will change radically in the coming years, and new technologies must be part of the strategic agenda. The way of working in FinTech will require a new search profile focused on new technologies and innovation. A talent that is difficult to find, which will be a challenge for banks as well as FinTechs.
