Many of us take for granted the opportunity for readily available, diverse, and quality financial services.
Others of us are not so lucky.
In our interview with Tatiana Delgado from BeeTech, a Brazilian Fintech, we learned about how people across the globe need payment innovation to increase their quality of life.
Tatiana noted that, “If you look in Brazil right now, the population above 18 years old, 40% of this population has no bank accounts.”
Yes, you read that right. Forty percent.
We learned a great deal more about financial technology innovation:
- Current state of financial services industry
- Regulatory demands in global markets
- Determining markets for global expansion
Tatiana offered up great insight from her nine years in the industry and the perspective that she brings from BeeTech. She described her organization when she said, “BeeTech is really a Brazilian FinTech. So we sell ourselves as an infrastructure provider for the remittance and cross border payment sector.”
“BeeTech is really a Brazilian Fintech. So we sell ourselves as an infrastructure provider for the remittance and cross border payment sector.” – Tatiana Delgado
Tatina went on to explain that at BeeTech, “We are really a hub for connectivity.”
This allows BeeTech to break down the financial barriers in Brazil and expanding markets by opening up more opportunities for people to exchange money.
Current state of financial services industry
In Brazil, there are primarily 5 large banks. This leads to low competition and availability for people in Brazil to do business due in part to the high bank fees. Remember the 40% over the age of 18 who don’t have bank accounts. This low competition is a likely contributor to that reality.
In addition, people need more access to global options. They are connected to people all across the globe and they need financial services that meet these needs.
People in Brazil are using services like BeeTech to connect them to the global market. The banks typically offer only local products with local access. Tatiana referenced what these people need when she said, “When they come to what they are trying to do is really have a global life.”
“When they come to what they are trying to do is really have a global life.” – Tatiana Delgado
Offering global services brings with it global regulatory demands.
Regulatory demands in global markets
Understanding the regulatory requirements and limitations within various countries can be overwhelming. We asked Tatiana how they go about gaining research and understanding around regulations.
Tatiana shared that in Brazil, they work closely with the Brazilian Central bank. She noted that the Central Bank is open to partnering with FinTechs. As a result Brazil has been open to adopting legislation that helps enable business for organizations like BeeTech.
When expanding in other global markets like the UK and United States, work with international partners to share how to navigate within each specific situation.
Integrating regulatory partners has been critical to their success. Tatiana shared her perspective and said, “The industry has been shifting a lot and seeing the need to partner up but really keeping in focus the client and the client’s experience and the value that it brings to the market really to partner up.”
Specifically, the large banks in Brazil have realized the need to partner with FinTechs and innovative organizations, because they’ve realized they aren’t going anywhere. The process is slow do to the bureaucratic nature of large institutions. But the effort is there.
What about beyond Brazilian markets?
Determining markets for global expansion
With the world awaiting expansion, how does an organization decide where to expand? We asked Tatiana what they do to determine what region is next. As head of business development, her insight brings value.
It was nice to hear what she had to say in terms of market expansion. She shared that, “The direction we choose is really dictated by our clients.” They listen to their clients and focus on those areas. Their focus is in North America and Europe currently.
Also in an effort to be client focused, they are considering opening an office in the UK to better serve their clients.
The emerging trend of many organizations, both in and out of the financial technology industry, is to be as focused on your client as possible. BeeTech seems to have this focus as the core of their culture.
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