Financial technology, or fintech, firms are on the rise. It is estimated that more than 300 of these companies are operational in Spain, providing an increasingly wide variety of services that include proposals for managing family finances, comparing mortgages and all kinds of financial products, payments services, financing, investment simulators, financial advice, cryptocurrency trading, bill payment, currency exchange, asset management, investment, and tax and accounts management.
Read More: insightsoftware Announces Intent to Acquire IDL Group
Instituto Coordenadas de Gobernanza y Economía Aplicada has convened a group of experts to analyse this specific field within the digital universe and one of the main conclusions is that neobanks are the category showing the most growth of all fintech firms and the most options for development within the finance sector, strongly powered by the digital transformation that has been forced by this year’s health crisis.
In contrast with traditional banks, neobank operations are exclusively digital, can be accessed at any time and from anywhere, and provide active finance sector users with flexible, transparent and low-cost access to a wide range of financial, investment and savings products and services. The Institute’s analysts consider that the growth trend being shown by neobanks is unstoppable. It is the optimal model in a virtual world, in which digital native customers are the ones who demand which financial business options suit their needs.
Read More: GlobalFintechSeries Interview with Derek Boirun, CEO and Founder at Realio
The Institute’s analysts further emphasise that the response from neobanking platforms to that demand has been equally optimal. One of the basic elements of any business strategy in the digital setting is data management, which has been very efficiently harnessed by neobanks operating in Spain. Their priority has been to get to know customers and gather and analyse data with scrupulous care for data protection, in order to offer them the very best experience during their financial operations. A personalised service is the goal for neobanks in order to achieve a model of financial services provision that shows maximum efficiency and minimum cost.
The Institute’s analysis reflects the growth prospects that may be offered to neobanks by Spain’s recent law for the Digital Transformation of the Financial System, which provides controlled testing spaces for designing and verifying the functioning of new business models in the financial field. In addition, the experts assembled by the Institute agree with the consensus among financial analysts, who predict that in five years’ time 15% of banking business will be performed by neobanks.
Read More: Diving Deep Into The Biggest Myths of Online Payments
