{"id":5190,"date":"2017-06-28T14:39:27","date_gmt":"2017-06-28T14:39:27","guid":{"rendered":"https:\/\/insights.invyo.io\/latam\/?p=5190"},"modified":"2018-02-12T15:50:33","modified_gmt":"2018-02-12T15:50:33","slug":"wait-or-move-the-big-dilemma-for-argentine-banks-with-fintech","status":"publish","type":"post","link":"https:\/\/insights.invyo.io\/latam\/fintech-corner\/wait-or-move-the-big-dilemma-for-argentine-banks-with-fintech\/","title":{"rendered":"Wait or Move? The big dilemma for Argentine banks with FinTech"},"content":{"rendered":"

Advances made by Fintech start-ups proves that new business models are possible and required. It\u2019s all about meeting expectations of the consumers and giving them the best solution.<\/strong><\/p>\n

Mercado Libre<\/strong><\/a> (NASDAQ: MELI) ignited the alarms of the banks, and consequently, started the discussion together with the Central Bank. After announcing its new service, Mercado Cr\u00e9dito<\/strong>, an online credit platform<\/strong>, several local and international bank groups took on the CBofA stating unfair competition from these new players, the Fintech start-ups.<\/p>\n

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Federico Sturzenegger – Central Bank president<\/figcaption><\/figure>\n

At the request of Argentine banks to implement new regulations, or even to remove existing regulations, the response from Central Bank’s president Sturzengger-Lucas Llach<\/strong> (the deputy in charge of technological innovation) surprised more than one banker:<\/p>\n

“There is no problem in that you create a fintech to go out to lend without this type of regulations”<\/p><\/blockquote>\n

Meanwhile, some banks started to walk this path of “co-innovation”, partnering with Fintech companies<\/strong> to offer products and services, including credit and international transfers<\/strong>. Few banks are adapting to these changes without waiting\u00a0the central to implement new rules; and instead want to take a predominant position in this disruption.<\/p>\n

There is certainly much more to be done. Blockchain technology<\/strong> is giving its first steps in Argentina with companies like Ripio<\/strong> and the use of algorithms in the granting of credits and handling of the finances<\/strong> still have a long way to explore.<\/p>\n

We see possibility of some new regulatory changes<\/strong> to come but those will no stop the threat, banks will have to adapt and spend their money on the use of new technologies that can address clients’ needs.<\/p>\n

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Advances made by Fintech start-ups proves that new business models are possible and required. It\u2019s all about meeting expectations of the consumers and giving them the best solution. Mercado Libre (NASDAQ: MELI) ignited the alarms of the banks, and consequently, started the discussion together with the Central Bank. After announcing its new service, Mercado Cr\u00e9dito, […]<\/p>\n","protected":false},"author":21,"featured_media":5194,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1797,3,6,11],"tags":[108,163,214,1499,1525,1523,1519,553,807,1521,1493,927,1522,1524,1075,1166,1167,1500,1491,1520],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\n\t\n\t\n