by Dieter W. Heinichen Pandemic and quarantine led to Fintech incursion according to Augusto Ynsfran.
Augusto Ymsfrán is a Kansas State University graduate specializing in finance. He graduated from Kansas State University in the specialty of Financial Planning, Financial Services and also has a degree in Political Science, he studied basic education in Costa Rica, Argentina and Panama, where his father fulfilled diplomatic missions representing the Republic of Paraguay.
In recent statements to the Paraguayan newspaper El Nacional, Augusto Ymsfrán believes that the COVID pandemic has created the right scenario for the multiplication, expansion and consolidation of Fintech companies. Fintechs allow access to the financial system for people who would not be able to have a banking contract without them, such as a checking account or a credit card.
Augusto Ymsfrán highlighted as an opportunity to access the financial system, the exponential growth of -fintech platforms, in countries like Paraguay where there is a high rate of unemployment and self-employed subsistence workers. And he adds: "There is a reality, not everyone is formalized, in Argentina for example, most adults never made a transaction that was not with paper money, because they could not access the banking system"
The high penetration of Fintech companies in such a short time is not only due to the pandemic, but also to the benefits they offer for transactions through their applications, for example «One accesses discounts in participating stores by paying through your Fintech , or transfers 24 hours without paying a commission. The low operating costs of not having physical branches for customer service allow these platforms to pay for these benefits”, said Augusto Ynsfrán.
What are Fintechs?
The neologism Fintech or Technological Finance is used to refer to financial entities that operate solely or almost exclusively by telematic means, that is to say that they can practically only be accessed through applications on smartphones, tablets or on a computer with access to web platforms.
Some Fintechs allow you to access a credit card for international use with which to carry out commercial transactions or, for example, contract streaming services legally. This is an opportunity for entrepreneurs who can open online stores that sell products and services.
Augusto Ymsfrán declares: “A student who has just finished school can access an account within these platforms and with the card they provide, buy products on Amazon and resell them in Paraguay. Something very common for those who have difficulties to work full time and study at the same time.
Thanks to Fintechs, many citizens can get out of the underground economy and create stores on Shopify and other platforms that, thanks to fulfillment and dropshipping services, for example from Printful, which are also accessible thanks to the card provided by the Fintech, can get the products they sell to their customers.
