Aitor Chinchetru
Founder & Co-CEO
Startup Contributor

The Fintech Card Revolution in the Middle of the Pandemic

By Aitor Chinchetru | Fri, 05/07/2021 - 14:07

The COVID-19 pandemic has caused devastation in almost every industry. But there have also been documented benefits from the health crisis. Examples include e-commerce, online education, and the fintech sectors.

In the case of fintech companies, how they are revolutionizing banking with their card offer is relevant. Before the pandemic, the number of bank offices and the proximity of those to home or office was a factor in choosing a bank. Meanwhile, lining up for a long time in a bank to make any transaction was common for almost everybody, whether they were making payments, opening an account, or simply getting a debit card in their hands.

The pandemic accelerated the adoption of neobanks, which are those banking entities that use the fintech philosophy. It also accelerated the adoption of digital entities that have a banking license to operate.

The charm of these solutions has spread thanks to the benefits that respond to today’s reality. These benefits are no longer simply "innovative," "disruptive," or limited to certain types of users. Today, more Mexicans can request a debit card using their cellphone in real time and receive it at their home. Today, it is also possible to receive up-to-date and accurate information regarding a bank account and to carry out traditional transactions through an app.

In a country where the pandemic has severely affected the economy due to restrictions and a slow vaccination rate, not having to go to a bank branch or stand in long lines, but to be able to carry out financial operations through an app and without paying any commissions is not only attractive for customers; it is also a solution for the current context.

Beyond the pandemic, those who offer this type of card also contribute to solving problems such as banking. In Mexico, it is a reality that convenience stores compete against traditional banking offices. Today, the new players who issue fintech cards can be at the level of both banks and players from other industries that have found a new business vertical in banking.

Today people can see some needs met remotely and, in some cases, access services that once represented a challenge while safeguarding their safety and health. However, it is necessary to reflect on what the pandemic has shown us: the more we have everything concentrated in one place, the better. The future will be for those entities that offer more than just one financial solution. Currently, some only provide digital cards. Others only provide loans or credit, and still others only help manage personal finances.

The pie cannot be incomplete. It is necessary, from now on, not only to provide more solutions and more services to people but also to incorporate a comprehensive, 360-degree vision that can help people have full use of the bank.

That is one of the missions of Fintonic: Incorporate in one place the solutions to the financial problems of Mexicans: from an intelligent, personal finance manager to loans and a debit card, just because 2020 taught us that we depend on the digital world and that the digital world will play a vital role in the control of our finances.

In these times, making the right decisions in terms of personal finances will be crucial for people's future: the fact that more people can have access to debit cards and loans will determine the future of economies by contributing to their dynamism.

Since its opening, Fintonic has grown a great deal. Currently, more than 900,000 people use its services in Spain, Mexico, and Chile. All these people now have an independent, reliable, and simple tool to understand their financial situation and make the best decisions on a 100 percent digital platform.

But, beyond offering a guide to make better financial decisions through its app, Fintonic also makes it easier for its users to contract financial services that improve their lives. Now more Mexicans will be able to access loans and debit cards without going to a physical bank.

Therefore, the question now is, how will the fintech sector evolve to offer more and better solutions to address current needs? The focus should now be on figuring out how to take advantage of the momentum provided by the pandemic to continue the path of economic acceleration in Mexico and in the rest of Latin America.

Photo by:   Aitor Chinchetru