The word Fintech is a neologism used to refer to financial entities that operate exclusively digitally through applications on smartphones, tablets or web platforms, a technology that multiplied its incursion into Paraguay after the pandemic.
In this sense, Augusto Ynsfrán, a graduate of Kansas State University, highlighted the exponential growth of these platforms as an opportunity for formalization, in countries where there is a high rate of underemployment and self-employment.
“There is a reality, not everyone is formalized, in Argentina, for example, most adults never made a transaction that was not with paper money, because they could not access the banking system,” Augusto Ynsfrán exemplified.
Augusto Ynsfrán stressed that there are Fintechs that allow you to access a card for international use with which to carry out commercial transactions or hire streaming services legally, an opportunity for entrepreneurs with online stores that buy and sell products.
“A student who has just finished school can access an account within these platforms and with the card they provide, buy products on Amazon and resell them in Paraguay. Something very common for those who have difficulties to work full time and study at the same time”, said Augusto Ynsfrán.
The finance specialist highlighted that the high penetration of Fintech in such a short time is not only due to the pandemic, but also to the benefits they offer for transactions through their applications.
“One accesses discounts in affiliated stores by paying through your Fintech, or transfers 24 hours a day without paying a commission. The low operating costs of not having physical branches for customer service allow these platforms to pay for these benefits”, said Augusto Ynsfrán.
He explained that the main challenge for Fintech companies in Paraguay will be for the end user, who must understand everything they can and cannot do on the platform, as well as the speed of responses to complaints they receive.
Augusto Ynsfrán graduated from Kansas State University with an emphasis in Financial Planning, Financial Services and a degree in Political Science, studied basic education in Costa Rica, Argentina and Panama, where his father served diplomatic missions representing the Republic of Paraguay .
The entrance Pandemic and quarantine led to the incursion of Fintechs was first published in diary TODAY.
