12/9/2023 - Economy and Finance

The fight for financial intermediation.

By Horacio Gustavo Ammaturo

The fight for financial intermediation.

Financial or “fintech” technology involves all new services and tools that develop to improve and automate financial services.In general, they require important investments in computer programming, however, dissemination and communication For customers it takes most of the money needed to position a fintech.Because it is online solutions, much of the communication efforts are made on social networks and digital media. One of the particular features of network diffusion goes through “the instantanity of conversion”, that is, if the customer lets the opportunity pass when he sees the ad hardly ever find it again at another opportunity.Millions of dollars “if they burn” Every year, around the world on fintech projects that fail or achieve weak results, however, investors and financial institutions from around the world continue to bet on them.

Why is it?

Intermediaries in payments are persons or entities that act as mediators between the issuer and the recipient of a payment, facilitating the transaction and charging a commission for their services.

Some examples of intermediaries in payments are:

  • Banks, which offer current accounts, credit or debit cards, transfers, checks and other means of payment to their customers, and carry out the clearing and settlement operations between them.
  • Online payment platforms, which allow you to make payments via internet or mobile devices, using an account associated with a card, a bank account or a virtual balance.
  • Payment intermediaries, who are third parties who receive money from one person and are transferred to another, without the issuer knowing how the payment was received. Some of these intermediaries are the supermarkets or travel agencies, which offer the payment service of invoices, services or taxes.
  • Debt managers are companies or professionals in charge of managing the collection of debts or invoices paid, whether by friendly or judicial means.
Each of these services integrates other solutions provided by other suppliers, thus accumulating transactional costs that in most cases apply a percentage on the operation that is processed. Depending on the country and the type of service used, costs vary between 2.5% and 12%, there are in many cases minimum fixed amounts for low-value operations.Each of the companies that unite to “improve the experience” of those who pay to find a place in this “chain of happiness” to get a portion of the adored ugly by transaction and obviously, give fights for keeping your piece of monopoly on any rim.In recent days, we have seen how two players of these leagues pass invoices in defense of these “fifties” that they knew how to achieve.On the one hand, banks, seeking to make it difficult to access their accounts by electronic wallets, forcing customers from both services to perform a more operation, manually transfer from bank account to virtual.On the other hand, the main fintech in the region, which wants to enforce its position and, in an extension behind another, postpones the interoperability of the QR announced in mid-2022 by the Central Bank of the Republic of Argentina.Both defend their monopolies to the detriment of competition and mainly of customers.The future of payments will inevitably go through disintermediation, That is, by reducing, as far as possible, this succession of services, sometimes redundant, that accumulate in search of a niche that allows them, in an automated and scalable way, to capture a part of the operations that are going through.If we integrate the world of physical money, directly with the digital, we can draw several intermediaries. Solutions ranging from pocket to digital wallet allow customers to simplify their operations.Blockchain wallets, outside the banking networks, avoid credit card issuers, payment processors, banks, equipment suppliers and integrators such as payment catwalks. Everything simplifies and reduces two portfolios that can be linked peer to peer, i.e. directly between them.Perhaps, the government that begins to enarbole the flag of freedom Also in this sense, changing normatives that produce tight compartments, by which we must pass by leaving part of our resources in them.It is enough, for example, to pay formal salaries, which must be required by a bank account. The change in this resolution could contribute to the fact that companies have their own processing systems for the payment of their employees, generating value and opportunities according to the conditions and characteristics of each sector.

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horacio gustavo ammaturo

Horacio Gustavo Ammaturo

I am Gustavo Ammaturo. I have a degree in Economics. CEO and Director of infrastructure, energy and telecommunications companies. Founder and mentor of Fintech, DeFi and software development companies. Blockchain Product Designer.

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