“Over the last two years we have witnessed the urgency and growing need for Argentinians todollarize to seek coverage. Now, Investment options are starting to appear for those who already have those dollars,” summarizes Andrés Ondarra, CEO of investment fintech Banza, to define the current financial moment.
Ondarra took the helm of Banza last October, after gaining experience at companies in the traditional financial sector, such as BGT Pactual, and in the digital economy, such as cryptocurrency exchange Bitso.
The December devaluation, the lowering of economic rates and the jump in inflation in the last two months have caused peso investments to lose their luster. Now, Argentinians who have already monetarised can do so put those invoices “to work”. Within the fintech universe, the Wealth Management, or Wealth Tech, segment of which this company is part has been one of those that have grown the most in the last twelve months. According to data reported by the company Finovista in collaboration with Visa, In 2023, this segment grew by 80%, thanks to the emergence and adoption of crypto solutions and investment accounts.
Ondarra underlines that the savings and investment needs of Argentines are multiple, especially in this inflationary context. “We see that there are all kinds of savers and investors, some more sophisticated and others who download an app to try some kind of product, and then end up entering a universe that is usually quite complex,” he says and emphasizes that “There are few solutions in the local market that solve these needs.”
In 2023, MEP dollar buying through Banza grew 800%. “We are attentive to the cycles of our users. Right now, what we see is that a good portion of our clients already have dollar bills and are looking for alternatives to invest them,” says Ondaraa and lists everything from buying foreign currency negotiable bonds, corporate debt Argentinian, to the bonds of neighboring countries, such as Chile or Brazil
“These are instruments in which it is possible to invest through a mutual fund and which offer a return of 4% in dollars, that is, measured in pesos, it is 500% better than the return given by a fixed term. We look for low-risk options that can guarantee good returns,” he explains.
Regarding the safety of investments, Ondarra underlines: “Those dollars that Argentines have already bought on the financial market are already in the banks. Now, What’s the point of leaving them there if you can get them to invest? And since this is done through a fund, they are also held in a financial institution.”
“We see that the vast majority of our users are working and can make investment decisions when the market is already closed. Paying attention to this, we will briefly launch a feature called after-sales market, which allows them to operate 24/7 with the app. This advantage comes from being an investment-focused fintech and not a digital brokerage house. We want to be at the level of this market, which we believe has opportunities even in difficult times like this.”
Source: Clarin
