Digital services are the best option to bank the population and provide better service, Felaban affirms

Despite the fact that the Latin American banking sector has shown the ability to overcome the difficulties of the international situation, the experts who took the floor during the inauguration of the 56th assembly of the Latin American Federation of Banks (Felaban), agreed that in the face of the world stage (post Covid era, war in Ukraine and natural disasters affecting the region), the location of opportunities is necessary, such as the strengthening of digital banking.

“Regional problems are big, and they affect us all, but we know historically that the way is to face and work towards reducing and banishing poverty, since the banking sector must always seek equality through the free market and ethics ”, assured Daniel Becker, president-elect of the federation for the period 2022-2024.

According to the latest Quarterly Banking Economic Report, after the Covid-19 pandemic, banking in the region is already at growth rates similar to those of the pre-pandemic, with an average increase of 3% in the region and also, with a good portfolio quality.

“We are a liquid bank, although with low profitability due to market issues, but still with positive numbers,” said Giorgio Trettenero, Felaban’s general secretary, adding that inflation and rate hikes have harmed the sector, because “we are on the edge of a perfect storm and difficult months are coming, so being united is a good strategy to get ahead, ”he says.

The new option: digital banking

As part of the solutions to minimize the impact of the crisis, it was indicated that technology and especially the Internet are now becoming more relevant, since it continues to change financial systems around the world, and in Latin America it has allowed greater inclusion.

This occurs because, on the one hand, the costs of the services are reduced and, on the other, because the user experience is improved. This combination results in lower prices and greater access.

“We cannot let banks fall behind in the business cycles that are increasingly agile in the new economy; we must be entrepreneurs and look beyond the industry to find the best practices”, says Becker.

Therefore, it was indicated that the adoption of digital payments benefits the different agents of the economy, consumers and, above all, those groups that have traditionally been excluded, such as the inhabitants of remote areas or those with lower incomes. .

In addition, regardless of the magnitude of the capital that is managed, the efficiency, effectiveness, quality and vision of the banking service must be the main objectives of the provision of banking services.

On the subject of cyber threats, several banks in the region are already working together, sharing information, to attack fraud that is committed digitally. This is how what is called the Regional Fraud Hub was created, which consists of a participatory system in which the members of the practices detected at some point are informed, in order to stop them and act accordingly.

Do not rule out cryptocurrencies

Silvina Moschini became the first Latin American woman to lead a unicorn company, when TransparentBusiness reached a valuation of US$1 billion in 2020. Now she seeks to give new entrepreneurs access to financing.

The Argentine entrepreneur is the president and founder of Unicoin, a cryptocurrency designed to be next-generation; it will pay dividends and will be backed by private capital from companies with great growth potential, to face the high volatility of crypto assets.

“The cryptocurrency system must be based on support, transparency and regulation; With these elements we will be able to work together with financial institutions to unite the best practices of the two worlds, facilitate investments and have better financial products”, he assured.

Finally, Bertrán Macchi, outgoing president of the entity, urged all members to work together and have this meeting point to analyze and recommend the best banking practices, so as to achieve a constructive dialogue with the financial authorities. for the definition of more appropriate public policies that promote competition and development in the region.

The president of the Guatemalan Banking Association (ABG), Luis Lara, indicated about the event that “we are doing things well and the effort to exchange experiences is positive for the entire region, today we are laying the foundations for sustained growth in general Lara said.

“Guatemala is a country with great potential”

The main speaker at the inauguration of Felaban, by Silvina Moschini, who is president and executive producer of Unicorn Hunters, a company with a capitalization that exceeds US$1 billion, spoke with Prensa Libre about her vision of the future of cryptocurrencies in our country.

What are Guatemala’s opportunities regarding cryptocurrencies?

I think there is a lot of opportunity in Central America and particularly in Guatemala because there are a lot of young people, the demographic sector of the country is one of the best in the region. Young people tend to innovate and here they are already investing in cryptocurrencies and looking to transact, so I see it as super promising.

Do you think that Guatemalans will embrace this system in the short term?

Guatemala has a very important entrepreneurial culture. There are many innovation clusters that are standing out all over the world. There are Chapine entrepreneurs who have already broken the Unicorn barriers such as Duolingo and Platzi who is very close to achieving it. I see it very promising.

What is the message you would send to people who doubt crypto assets?

That they do their research work to see who they are investing with, since there are many cryptocurrencies, but the vast majority are not regulated and that represents a huge risk in terms of volatility, because they do not have support in general, but also because it is not known who to complain to in case of problems.

My advice is that when you invest, do it with companies that are incorporated in jurisdictions where you can have traceability.

In that sense, how does Unicorn Hunters operate?

In our case it is a security, which is as if it were a traditional company action in the United States. We have supporting assets, which are equity positions in companies; we also have accounts receivable and in real state (real estate).

What other guarantees are reliable?

It is always essential to know what is backing the cryptocurrency, which can be an industry, gold or wind energy. You should not invest without fully knowing those details.

Are the current regulations enough?

It is very necessary for investors to be more protected; Meanwhile, you have to study very well where to put the money. In general, in Latin America the governments are quite clear about it; We hope they will act soon on this.

A few days ago, the cryptocurrency giant FTX went bankrupt, how can we assimilate this case?

It was not a matter of lack of regulation. In my opinion it was a “take over” of an entrepreneur who literally ate the competition, took it out of the market and this brings the urgency of working conscientiously on how to regulate and create a framework to protect the industry. But mainly, to protect people’s investment.