The fintech revolution in the financial market

Today we are experiencing a period of many changes in the financial market. Brazil is going through what we can basically call a true fintech revolution. These companies, which, in fact, gained strength in the last decade, are already causing a strong change in the way Brazilians deal with finances.

After all, competing with the largest banks in the country is not an easy task. It's a huge challenge that requires a lot of effort. And they don't just do that. They go further. Above all, they provide quality service and are so pleasing that around 70% of customers are satisfied.

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But what about you, have you ever used the service of any Fintech? If so, you certainly know why this article is called the fintech revolution. The interest rates charged by them are lower, the fees are practically non-existent, depending on the service, and the return on investments is much more advantageous than with the old companies that dominate the market.

Innovation as a strategy for the fintech revolution

The watchword in fintechs is innovation. Mainly because these companies use technology to bring more convenience, privacy, availability, and speed to customers. To do this, these startups rely mainly on the internet and on applications that can be accessed via cell phones, smart watches or other devices.

The main products offered by fintechs undeniably range from credit cards to loans and investments. They are, therefore, true virtual bank branches. Thus, even checking accounts can be created in digital environments. And customers can withdraw the money at the cash machines. However, their main difference from banks is that, basically, each fintech specializes in a special service, while banks try to do everything that decreases the quality of their services.

Do you know what, in fact, enabled the fintech revolution?

The focus on technology, specialization in certain products, unprecedented solutions and less bureaucracy are some of the strategies that enabled the growth of these companies in the domestic market.

But let's explain each of these points better.

Focus on technology

Digital solutions for fintechs aren't just an extra - and separate - way to solve a problem. Financial market startups have their greatest differential and main channel of contact with clients in the development of digital solutions.

Specialization

Offer fewer products and guarantee higher quality in each service. That's what fintechs do. Thus, the specialization in few items means that efforts are concentrated on this small diversity of businesses. Therefore, this improves customer service and promotes excellence in the service provided.

Unprecedented solutions

Fintechs took advantage of a market that emerged with the new millennium. While large banks and other traditional institutions were slow to catch up with the needs of the new consumer, financial startups arrived to cover this space in the market.

Due to their business model, with a lean structure and focus on technology, which made their processes much cheaper, fintechs launched hitherto unprecedented solutions. Thus, products such as credit cards with no annual fee, bank accounts without fees, low-interest loans, and consulting for small investors, appeared in the domestic market.

Less red tape

Fintechs mainly use technological solutions to solve old bureaucratic bottlenecks. One of the services that collaborates most with these companies is Clicksign Automation, a platform for automation and contract administration in a digital environment. With it, financial startups no longer need physical space to archive their transactions. They also don't need physical signatures (pen to paper), since Clicksign Automation works with electronic signature of documents. To get an idea you can sign a contract even using Whatsapp.

Have you ever considered completing a deal using the app that you access the most during the day? That's the magic that Clicksign Automation does and that's the secret of a fintech. They are adept at technological solutions for solving problems.

All of this reduces the time for processes to take place, since there is no need for correspondence or for customers to waste time in lines. Then, the problems are solved directly in the app.

Big banks are unable to innovate

Although large banking institutions use websites, applications, and online service channels, they do so to obtain lower costs, while fintechs work with these practices to offer better solutions. Innovation is, therefore, the lifeblood of a financial startup. Therefore, an update to an application, a differentiated site or a new business platform is designed primarily to improve the user experience and not as a process of reducing expenses.

The big banks are certainly unable to do this because their enormous structures, with various internal bureaucratic procedures, hinder their capacity to innovate. In addition, because they offer many products to a very heterogeneous audience, digital items are not their priorities.

Smartphones and the fintech revolution

One of the factors that contributed to the fintech revolution was, unquestionably, the popularization of smartphones. Today, a good part of our lives is managed over the telephone. It is undeniable that through it we can request a driver to get around the city, or if we prefer not to leave the house, we can order our favorite meal, or watch a movie, listen to music and even do the shopping for the week. All of this through a telephone. So why not manage our investments and other banking services on the cell phone?

That's why fintechs have grown so much in the last decade. Technology changed Brazilians' lives a lot and bank clients realized that they could make their lives much easier through these companies.

And now I ask you: who doesn't want to be served by a company that offers these benefits to its customers?

Clicksign Automation is a solution for fintechs and many other startups

Clicksign Automation is a platform for creating, signing, and administering contracts in a digital environment. Although we are not a fintech, our solution collaborates a lot with the work and business model of financial startups. After all, with our product we solved much of the red tape that could affect them.

But it's not just fintechs that can benefit from Clicksign Automation. Try adopting our solution there in your company as well. We are sure that we will give it a chance to occur a revolution in the way you manage your business.

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