Remember when you had to go to a bank branch to resolve 95% of the issues that we can now resolve with just a few clicks on an app?
This is only possible because, in recent years, technology companies focused on the financial market, fintechs, have emerged, causing and are causing several impacts on the classic way we were used to dealing with money.
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In an exclusive class for LIT students, Professor and Academic Coordinator at Saint Paul Business School, Mariana Oreng , spoke about this new business model and the role they have played in the Brazilian and global markets.
What are Fintechs and what is their role in the current economic scenario?
In general, Fintechs can be defined as companies denmark whatsapp data in the financial sector that make extensive use of technology to innovate , offering cheaper or different products and services than those traditionally offered by banking institutions.
A very common example are digital banks that have become popular for offering credit cards with no annual fee, as they reduce their costs with technology.
It is possible to divide the performance of Fintechs into 5 blocks:5 areas of activity for fintechs
Changes brought by Fintechs
This business model has brought structural changes to the entire monetary system. Among these, we can mainly mention the effects of digitalization, the use of platform economies (the idea that within a single application or website it is possible to have access to several services), big data and, on the negative side, threats of cyberattacks.
"This has reshaped the way we have thought about financial action in the world", highlights Professor Mariana.
Another major change concerns regulation, since in the industrial era it was easier for tax authorities to supervise the banking system - since all services were performed mechanically and in a stable manner. In the digital world, supervising all these activities has become more difficult, making regulation less effective.
The credit market for Fintechs
Although these companies offer several innovative services, most of them work with credit. This is because in this sector there is a need for:
Financial inclusion: Many Brazilians do not have access to financial services and end up becoming a great audience opportunity for fintechs;
Increase the competitiveness of the sector: Thus putting pressure on innovation;
Reduction of banking spread: Recent studies show that having few institutions offering credit services in Brazil only increases the difference between the purchase and sale price of a banking product.
Follow the changes in the financial market
Prepare to lead finance transformation with Saint Paul’s high-impact Strategic Finance for C-Level and Board Members program .
It addresses all the trends and challenges of Fintechs, empowering participants with essential skills and knowledge to stand out in a constantly changing financial environment.
With subjects such as Startup Finance, Valuation, Sustainable Finance and Corporate Governance, you understand the economic scenario, develop innovative strategies and adopt the best practices in corporate governance and ethics.