Welcome back to the first WealthTech Unwrapped episode of 2022. Ned and Dani start this season off with Jorge Javier Eguino and they discuss the success of microfinance and rising trends of the FinTech industry in Latin America. Despite conditions varying from country to country within LatAm, Jorge observes a common inclination of financial institutions to focus on customers’ digital experience, as compared to the past where credit officers were at the center. Due to the pandemic, enhancing user experience through different channels has become a priority in ensuring quality interactions with end clients. Jorge also notes that more financial institutions are willing to partner with FinTech firms. Previously, institutions were hesitant to collaborate with third-party software providers because they wanted to develop and own the technology internally. Microfinance has seen a successful rate in LatAm as their digital transformations often bridge the financial literacy gap by pivoting on the native culture and languages. Although players in the FinTech ecosystem are targeting this gap as well, there have been many barriers for new banking players to enter markets. Opportunities for firms to broaden their reach are also frustrated due to regulatory restrictions. Jorge also predicts that InsurTech will increase its penetration in the South American region, and the open banking movement will escalate collaborations between legacy banks and FinTech firms to higher grounds.
- September 21, 2023