Fintechzation of Companies

Fintechization: Why your company should consider this trend?"

"Fintechization," as the integration of financial technology elements - fintech - into companies that were originally not focused on financial services, is a global trend. An analysis conducted by the Boston Consulting Group and by QED Investors projected fintech revenue expansion to $1.5 trillion by 2030. This figure suggests that the sector will grow up to six times during this period. In Latin America, led by Brazil and Mexico, the estimated annual growth rate is 29%.

Another survey conducted this year by Akamai Technologies with public bank customers revealed that 70% of people have accounts with traditional banks and digital banks. Three years ago, in 2020, this percentage was only 37%.

There are many advantages to considering joining the "fintechization" wave. In theory, any company can incorporate fintech elements into its operations, regardless of its primary activity. Retail companies, for example, can adopt electronic payment solutions or create digital account apps to facilitate financial transactions, offer digital accounts, and boost sales by providing loans to their customers and suppliers. They can also offer credit cards and services like bill payments.

Expanding into this area allows for the expansion of the customer base to different profiles, including those not directly related to the company's main business. It can also help strengthen the relationship with the current audience by offering integrated financial services or personalized solutions that meet their needs.

This move, in addition to creating new sources of revenue, serves and fosters the growth of the entire chain through products that involve customers, distributors, and suppliers. This way, the company builds loyalty with stakeholders, assisting in the development of these players and, consequently, generating benefits for the economy as a whole.

How to Implement a "Fintechized" Operation

The implementation of "fintechization" operations is straightforward but requires support from specialized consultants for several reasons. The first reason is to establish strategic partnerships with established financial institutions, payment service providers, transaction processors, and other entities in the industry. They can provide access to payment networks, banking infrastructure, custody services, and other essential capabilities.

Moreover, regulatory compliance is crucial. A company that wants to have fintech services does not need to have licenses but must choose partners wisely for what it wants to do. Support is essential to identify and negotiate these partnerships more effectively.
Another reason is technical knowledge.

There is also the issue of customer support, which needs to be efficient and reliable. This may involve customer service channels, technical support, financial education, and problem resolution. Processes and systems must be established to ensure a positive customer experience and handle any issues or complaints that may arise.

Specialized consultants can assist with everything from structuring and planning to implementing the solution, delivering a ready-to-run activity for the company. Despite the precautions to ensure that "fintechization" happens smoothly and generates the expected returns, it is advisable to consider following the trend with the proper support, which will continue to grow exponentially in the coming years.