Fintechs are gaining ground on banks
Fintechs are bringing about an unprecedented financial revolution. 11Onze is spearheading this change, combining cutting-edge technology and more efficient financial management that empowers users. In this changing landscape, traditional banking is lagging behind.
Perhaps we think that this revolution is a long way off, because the pandemic has dragged us into a complex day-to-day life. But we cannot be naïve: the changes in the world of finance affect us more than we think, and will affect us even more. That is why it is important that we understand the relevance of the moment, act accordingly and stay on track. The promoters of 11Onze saw this opportunity and are taking advantage of it.
Without going any further, Spain already has more than 350 fintechs in full operation and hosts 50 foreign start-ups. In the report Ecosistema Startup, the consultancy firm Xstartups states that more than 30 fintechs have been created in the last two years, including 11Onze, Ritmo, Payflow, Orama, Menhir, Fiara, Findoit, Stockfink, Deale, Bankse, Kintai and Pop, among others.
From advisors to undisputed leaders
Things are changing radically, and very fast. Fintechs have gone from supporting traditional financial institutions to leading the change. And there are two reasons for this. The first is the emergence and spread of chatbots, artificial intelligence, blockchain and cryptocurrency. The second is the exponential growth of private venture capital willing to invest in innovative ideas to change the current political, economic and social system. Both causes have led to a real transformation of financial technology.
Thus, at first, it was Asian financial institutions that began to launch super apps that brought together hundreds of thousands of users around financial services. The explosion was so sudden that regulations in the western world have become obsolete and are still being adapted by leaps and bounds. All this technological automation has led to fierce competition in the financial sector, as reported by Investopedia.
Hot on the heels of Asian countries, the United States has embarked on an unprecedented race in financial technologies. And on a global scale, large banks have even created digital incubators to copy the solutions of financial start-ups. Concern has grown to such an extent that the CEO of JP Morgan, Jamie Dimon, who manages a billion-dollar banking empire, has gone so far as to say, literally, that traditional banks “have to be scared shitless” by the unstoppable advance of fintech.
This is how large operators such as JP Morgan, Goldman Sachs, BBVA and Banco Santander have had to quickly promote new services to connect and attract customers. And the complaints have not been long in coming. First, because they did not have time to adapt to the new European PSD2 regulations, as fintechs such as 11Onze have done. Then, because they want to manage the Next Generation funds arriving from Europe and they cannot because it does not correspond to them. And now, because they will have to adapt to the requirements of the Spanish government, which obliges them to serve customers within 24 hours. In this sense, 11Onze has once again moved forward with its 24/7 team of agents and with the ‘11Onze a casa’ service.
Gen Z, community technology
The reality is that there is an exhaustion of the traditional financial world. Mistrust has grown steadily in recent years, due to banking abuses, such as subprime mortgages, black cards, IBAN discrimination and arbitrary commissions. To all this must be added the massive closure of bank branches, which no longer offer local services. In fact, these closures have driven thousands of bank workers to ERO, and they are joining en masse, because, they denounce, they are “fed up with working as salespeople.” Fintechs, on the other hand, offer flexible and technological workspaces for their workforces.
In this context, fintechs are carving out a niche for themselves in a particularly young, digitally native, hyperconnected market that does not understand complication, slowness and lack of transparency. And they are doing so by strengthening community ties and collective empowerment. According to a study by Asufin, 38.5% of 18-25 year olds use them. Even so, it is surprising how little knowledge the older age groups have about fintechs. In Spain, only 32% are aware of them.
Moreover, as reported by the Financial Digitalisation Observatory of Funcas (ODF-Funcas) and Finnovating, nine out of ten customers of digital finance companies give a score of 6.98 out of ten for the services they receive. They value price and security above all, above ease and transparency. Moreover, 37% of respondents would opt for a new financial provider other than a traditional financial institution if they wanted to open a new account.
This is why, little by little, word-of-mouth is gradually catching on among the public and has become the best ally of the new technological finance companies. So yes: fintechs are not only here to stay, but they are destined to unseat traditional banking in a short time. 11Onze wants to be the spearhead of this unbridled revolution. And it wants to count on you, so that you too can be a driving force for change.
11Onze is becoming a phenomenon as the first Fintech community in Catalonia. Now, it releases the first version of El Canut, the super app of 11Onze, for Android and Apple. El Canut, the first universal account can be opened in Catalan territory.
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