How Can We Revolutionize the Financial System?By Sergio Jiménez | Mon, 03/07/2022 - 17:00
How to revolutionize the financial system is the question we have asked ourselves over and over again, and although I do not know if there is a 100 percent correct answer, the closest from my experience is by understanding and meeting the needs of millions of people, by putting an end to the repetition of patterns we grew up with, by betting on inclusion, education and financial culture, and by offering products and services that appeal to the majority.
This is how we can create change and innovation in a sector that has remained static and exclusive for years.
Ever since I started working as an entrepreneur in the financial sector, I’ve had the clear objective of creating products that empower people, giving people freedom to choose what they want to consume and how to consume it; historically, financial products have been developed under a reductionist and bureaucratic vision, designed only for a small portion of the population.
Recently, there has been significant growth in the financial technology sector. According to Finovista's latest research, there are 512 Mexican fintech startups, and Latin America is among the regions with the largest capital investment for the development of a new market. Nonetheless, the leaders of these new organizations should pause and rethink whether we are really generating solutions that meet the needs of our customers.
Now, more than ever, as entrepreneurs with financial means, we need to create solutions by offering products that target the vast majority: those who have been ignored by financial services their entire lives.
As those who are at the forefront of these new financial companies would say, in order to build solutions and bring about change, an evolution and revolution in the financial system, we must take several steps backward and discard the vices of the past.
Initially, we must rethink the kind of financial products that are needed in Mexico and Latin America.
Also, in addition to providing access to innovative, easy-to-use agile tools, we have to put ourselves in the consumer's shoes. Aside from providing the physical necessary means, we must guide them step by step, and in a responsible manner, on the adoption of these tools, helping them understand how the market works, from A to Z.
Another area of opportunity that has received little attention is language, which should definitely be a priority. If we speak a “different language,” with technical and stilted words, it will be difficult to gain the consumer’s trust, and we will continue to repeat old patterns.
For example, at Flink, we have created and continue to build a platform that focuses on investments, where everyone has a place, regardless of socioeconomic standing, education, investment experience, or any other characteristic that may segment people.
We realized that, for many years now, there has been curiosity and interest among Latin Americans to invest in the New York Stock Exchange, but there has been no one to provide people with access to it. This is why we designed an easy-to-use, user-friendly mobile app that incorporates simple language for our customers. As a result, more than 1.6 million people have been able to invest in some of the most important companies in the world, with just MX$30 (US$1.50) and no commissions.
The accelerated growth in the number of our clients has resulted from the fact that we listen to each and every one of them. We are aware of what they need and how they want it. In addition, we guide them in the learning process to awaken their curiosity and allow them to become better investors. In this way, we continue to develop a market and offer products that match the lifestyle of the vast majority.
If we want to revolutionize the financial system, fulfill a mission, and reflect our main purpose in what we do, we have to start by understanding that the country and regional markets have different needs, they are not homogeneous; customers are the most important element, and our businesses should develop around their real needs and not just to stimulate consumption.