To commemorate the World Consumer Rights Day, the Spanish Association of FinTech and InsurTech (AEFI) explains the four reasons that have made FinTechs a fundamental link in the value chain and how they have promoted progress and development in this ambit.
The FinTech are focusing on new product development financial, which they want to be faster and safer. These companies have worked to digitize financial institutions and users. The optimization of the financial system has been sought, adding transparency and accessibility so that the user is well informed. At the same time, it seeks to guarantee maximum security.
One of the key points is the European regulatory framework PSD2 (Payment Service Directive 2). This rule aims to protect the client against fraudulent operations through the Internet and improper access to sensitive information.
PSD2 is a mechanism that allows the development of new, more secure forms of payment. It allows to guarantee who and when accesses the data. It also adds a double authentication system to improve customer security.
We also have the WealthTech that facilitate investment for savers and small investors. They seek to help users make correct financial decisions and boost their profitability through new technologies and service contracting methods. Some of these solutions are participatory financing platforms, financial aggregators, automated managers, etc.
It should be noted that the Spanish FinTechs seek to create a framework of high protection for the user when using new products. For it a financial sandbox has been developed in Spain where technological innovations that give high security to the participants can be tested. This is intended to protect consumers and end users.
These innovative companies push traditional banks to seek new business models based on user needs. Digitization offers great efficiency in services and a greater range of functionalities.
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