The banks, that is to say, the part of the changing financial system that is currently regulated by the Central Bank, once again publicly expressed their claims so that both the BCRA and the AFIP match the regulations that nowadays frame the operations of financial institutions with the competition that they represent the so-called “fintech”, that is, financial companies, with a technological base, which for the time being remain outside the regulatory radar of the Central and, in addition, have a different treatment in tax matters.
The claim was expressed this afternoon by Javier Bolzico, president of ADEBA, the chamber that groups private banks with national capital.
In a meeting with journalists, Bolzico praised the growing competition that has been taking place for some time between traditional banks and fintech, but claimed that such competition is “on equal terms.”
“Today the court is inclined in favor of the fintech,” said Bolzico. The discussion began as technology companies began to disembark in the financial system, first offering alternative means of payment and for some time also providing loans.
The “fintech” are handled outside the Central regulations because, formally, they do not lend money from their clients -as the banks do- although this is an open discussion, given that the banks maintain that these companies (and they point to all to Mercado Libre) circulate in the form of loans the funds they have within the market place who operate there. Mercado Libre, of course, denies this.
There is another case that bankers give as an example. Transactions with credit or debit card. The banks, in each operation, retain a part of the sale operation for the merchant as income tax, gross income and VAT. When the operation is done through a non-bank electronic wallet, that withholding tax does not apply.
On these “asymmetries”, ADEBA commissioned a work to the foundation FIEL. In this work, it is affirmed that for the coexistence between banks and fintech it is harmonious and equitable, it is necessary to solve what they call “market failures”. “One of the factors that can reduce competition are tax distortions, such as discriminatory treatment for different bidders, promoting specializations in different niches or segments. This would be the case, for example, of tax or regulatory advantages in favor of fintechs. , in a way that encourages them to penetrate the informal customer segment or facilitate informal transactions in general. “
Specifically, the work of FIEL recommends “reducing and equating tax withholdings in the use of electronic means of payment with general application, introducing a special treatment of income tax withholdings for SMEs.