Aitor Chinchetru
Founder & co-CEO
Startup Contributor

Financial Information Key When Exiting the Crisis

By Aitor Chinchetru | Wed, 10/14/2020 - 09:20

Since February 2020, the world has suffered from an unprecedented crisis that began as a pandemic, which led to an economic and social crisis. The consequences are still uncertain, but the consensus among analysts is that there are many months of difficulties to come and that, when we reach the "new normality," it will be very different from our pre-COVID-19 life.

In this context, the middle classes and the most disadvantaged segments of society across the world are most at risk of suffering the worst consequences, such as loss of employment, difficulty coping with payments, inability to access healthcare or education and limitations on access to housing, among the more visible implications. 

These difficulties generally lead to behavioral changes that have a deeper impact on society in the medium and long term, such as the decline in birthrate, increase in divorces, reduced educational levels and a rise in emigration, among other consequences. Mexico, like other developing countries, will also suffer these consequences to a greater or lesser extent.

However, these periods of crisis also have some effects that can be very positive for society in the medium and long term, generally related to greater innovation, the transformation of inefficient production models and entrepreneurship. 

Fintonic was born in the midst of a crisis. It was late 2011 and after the fall of Lehman
Brothers, Europe was mired in the biggest financial crisis since 1930. Spain was especially affected, with unemployment, debt and delinquency rates never seen before. Unfortunately, that is a scenario not very different from the one that is looming in many parts of the world and that Mexico cannot possibly avoid.

In this context, some entrepreneurs in Spain decided to do their bit, developing a solution that allows everyone to improve control of their finances. And the basis for improving knowledge is information. Having daily, orderly, simple, reliable and transparent information is absolutely necessary to develop a financial education that allows each person to own their own destiny.

In these times of crisis, making the right financial decisions is going to be key for the future of families: reducing costs, mitigating the cost of financing, or having access to credit are some of the decisions that will allow families to ensure their future, their education and their health.

Since its inception, Fintonic has grown a lot. Currently, more than 900,000 people make use of their services in Spain, Mexico and Chile. All those people now have an independent, reliable and simple tool to understand their financial situation and make the best decisions on a 100% digital platform. Importantly, it is totally free. To make this possible, the use of Big Data analytics and advanced technologies together with a highly refined user experience are absolutely necessary.

The idea of ​​these entrepreneurs has also penetrated the legislative authorities. First, the UK (with the Open Banking regulation) and then the European Parliament (with PSD2) have approved regulations that guarantee users the right to have reliable and transparent information about their banking activity. Other countries, including Mexico, are expected to adopt similar regulations in the near future. 

In recent years, Fintonic has gone one step further. In addition to offering information, it also makes it easier for its users to contract financial products under the best conditions. Based on a marketplace format, users can choose from more than 20 banks for their loans. This model offers total transparency to users, as well as the guarantee that they are contracting the best product for each of them.

Difficult times are coming for everyone, but it is precisely in these moments when entrepreneurs take a step forward. Fintonic is just one more example of a company born during a crisis and that has been successful, above all, by putting the focus on offering useful, simple and transparent services to users, helping them to own their future thanks to financial information.

Photo by:   Aitor Chinchetru