Disrupting technology as the new technological fad

In June, something dawned on me as we covered the Colombian elections: Tech alone is not enough. Candidate Rodolfo Hernandez bets everything on the social media campaign creation system; He passed the first round, but was crushed in the second. There are many reasons behind the offense, but I’m still surprised that the man didn’t come out and crush the flesh – not shaking hands, kissing babies or what politicians do when they knock on doors. The same goes for companies that prioritize technology over the human touch.

Since then, I’ve been somewhat preoccupied with solutions that have “technologically” sidelined the industry’s standard practices over the past decade. From weird, company-sinking gimmicks to the wisdom of tech bros and VCs, some of the world’s biggest startups have ignored and thrived without it.

Start with the knowledge gained in the technology ecosystem.

In the year In 2019, a panel of Latin American fintech gurus sat down with a top official from the Bank of Mexico to extol the virtues of all things digital finance. The fintech mantra of “cash is competition” was already starting to catch on, so the authorities argued that the priority was to facilitate the installation of ATMs in rural parts of the country. To clearly support the continuity and – shock – expansion of financial solutions, it appears to be a step away from the digitalized utopia envisioned by fintech enthusiasts.

Years later, the adoption of fintech solutions, payment options and digital banking has been great (including the Mexican government’s own digital payments solution, Cody). In the meantime, I hope those cash points are loaded in those faraway cities.

I keep coming back to this story because it clearly illustrates the obsession with high-capital-F fintech ideology, which prevents entrepreneurs from thinking about what people really want or need.

The issue can be resolved by talking to the people who are meant to serve in person. Unfortunately, Latin America’s tech bubble is a very closed affair, so I worry when its members use language like “democracy” or “revolution,” which often reveals that companies and investors are more interested in talking to the people than they are. Customers.

This obsession with in-group approval can lead down some dark paths. The most infamous case in Latin America is disgraced Mexican edtech startup Yogome, whose founder was accused of inflating user numbers to lure more investment, but other sad examples abound. A closed tech society leads to the gimmick-loving herd mentality that has given us the rise and fall of dozens of scooter companies, ultimately making little economic sense.

Meanwhile, people unsatisfied with gimmicky tech offerings are jumping on “revolutionary” new apps for tried-and-tested digital services. Community-driven solutions like WhatsApp-led taxis in Venezuela and neighborhood last-mile delivery groups in Mexico are popping up everywhere, each being eyed by entrepreneurs looking to turn them into monetized products. Some have succeeded in this, like the Brazilian neighborhood product delivery service, but others have worked hard to build a community of real people and test the product thoroughly on the ground.