Last Friday, September 16, the last edition of the year of the cycle “Fintech Webinars” leading to the preparation of the “Argentina fintech Forum”, to be held on November 1 and 2, in format digital and face-to-face. Thus they informed Cointelegraph in Spanish through a statement.
The meeting was attended by Diego Pace, CFO (Callao); Agustina Payeras, Marketing Analyst (OpenPass); Rodrigo Meriggi, CEO (myHNT) and Candelaria Villagra, Commercial Manager of Digital Banking – Baas (Bind).
In this opportunity, executives of Business of this segment talked about the beginning, development and evolution of the finance embeddedled by Gabriel Berger, Senior Financial Consultant (Adila Fin & Pay), and Mariano Biocca, Executive Director of the Argentine Chamber of Fintech, who acted as host.
Throughout the debate, Berger raised different triggers to trace a path from the birth of embedded finance, the main players, its potential for financial inclusion, to its future prospects.
Villagra was one of the first to speak of the embedded finance concept saying: “There are many companies that have important communities, they know their customers very well, even better than any bank or financial entity, and they want to offer one more product, but they do not have the expertise to do so. Embedded finances allow them to take that step, with the support of different entities behind”. He also added that part of the growth in this segment is driven by these companies that know their community and know what they needexplaining: “They have a value in that client that is very useful for the world of finance, because the financial system sometimes arrives late because it does not know the exact moment of need.”.
Delving into the debate, Berger stated: “Embedded finance was born out of a need for users to have new services and for companies to retain existing customers, but what is the underlying reason?”.
On this subject, Pace opined that one of the main drivers of embedded finance is the cost of customer acquisition. He declared: “While it costs between 100 and 200 dollars for a bank to add a new customer, it will cost 5 dollars for any other company that sells products or services. The cost of obtaining a client, relative to what can be obtained from him, is much more profitable for these companies than for a bank. Embedded finance is going to be a trend due to this effect economic”.
For his part, Payeras explained what is the contribution of marketing for the development of embedded finance and highlighted: “The key is to show transparency to minimize the frictions of the transactions, and that users perceive a homogeneous experience, instead of a set of services or providers. It is important to highlight the trust that the user places in the brand”. In addition, he highlighted the social impact of embedded finance, by facilitating the reach of a large number of people who do not have access to financial services.
Meriggi, in his turn, raised a new question: “What happens when the client is a company? Is it possible to embed financials for that segment? At myHNT we are addressing the needs of companies that want access to financial services and their financial services provider is not there. For example, in the automatic allocation of collections”. The myHNT executive also highlighted the work behind embedded finance. He said: “The user perceives that it is simple, but it is not, but we work hard every day to make it easier.”
Conclusion, the participants agreed that there are still great opportunities for growth in the segments of lending and the corporate sector; and in the need to continue pupil financially to users. Finally, they highlighted the collaborative nature involved in the development of embedded finance.
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