The growing trend of integrated multiplatform services is revolutionizing the market and leading to the true democratization of financial services.
The evolution towards embedded finance opens up a range of possibilities even for traditional companies, and it is all focused on bringing products closer to the consumer. Ronald Alvarenga, CEO of Inswitch, analyzes the importance of this new step towards the implementation of digital financial services.
Alvarenga explains that after the pandemic, with the acceleration of digitization processes and social restrictions, eCommerce and digital transactions showed an exponential increase, including in the growth rate of Inswitch that traditionally had been registering an increase of 20%, multiplied 100% in some of its services.
Hence the recent boom in incorporating financial services into the consumer experience. "This is what we call the sense oriented towards the end consumer having the best user experience, that he can enjoy the entire life cycle of purchasing a product without having to abandon the application he is using."
For the executive, this is the reason why many companies seek to incorporate into their portfolio products and services that previously only traditional banks offered, looking for wallet or core banking platform solutions to integrate payment methods, credits and cards to offer their customers .
For the leader of Inswitch, there is currently a boom in the retail sector in the United States and Latin America who are addressing the trend of integrated finance to offer services to their same customer base.
“The industries that are at the forefront are those with a massive number of users. We see that traditional retails or all those mass consumer product distribution companies are turning to develop independent business units to be able to include the fintech vertical within their services ”.
Ronald assures that "the step towards this new business model, the incorporation of financial technology, is very natural and intrinsic," even in the segment of small and medium-sized companies so that they can operate even if they do not have integration or any technological development.
"It is a necessary movement of sector costs, to go from traditional tools to innovative tools with the aim of making the product cost-efficient in the long term."
Now any company can become fintech through integrated financial ecosystems, but the novelties lie in cloud-based services with strategies that adapt to the particular solutions required.
The trend is towards 100% cloud platforms with access to APIs such as Fintech-as-a-Service to combine the applications and create the appropriate experience for the use case to be implemented, this is what Alvarenga ensures to have fast, safe and frictionless handling of operations.
Finally, it points towards agnostic systems because the key is to "adopt any environment to any industry, in the end it is the customer who decides how to pay and how he wants to interact."
Ronald has extensive experience in the banking sector, mobile technologies and the fintech industry. Previously he has served as Director for Latam at Rapyd, he also successfully launched one of the world's largest mobile money fintech services Millicom (Tigo), and was Regional Vice President of Products and Segments at Citibank.
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“Inswitch’s goal is to democratize financial services worldwide” added Ronald Alvarenga.
Both giants of the digital financial services industry seek to make it possible for businesses still using cash to integrate electronic means of payment into their infrastructure.
The COVID-19 pandemic has transformed the activities and daily habits of society worldwide. The measures adopted by governments, like social distancing and lockdown, contribute to curbing the spread of the virus but at the same time generate a slowdown in the economy, particularly affecting the most vulnerable sectors.