Something quite interesting has happened recently in Argentina. Three banking associations joined forces to submit a proposal to the regulators, with one core demand—to allow banks to continue monopolizing the channels for salary and pension disbursement.

Behind this, it's really a battle between traditional finance and fintech companies. In recent years, fintech has been developing at a dizzying pace across Latin America, with all kinds of digital wallets and payment platforms starting to eat into the banks' share. Salary and pension disbursement, which may seem like traditional business, is actually a key way for banks to lock in users and hold onto funds. Once fintech companies break into this territory, deposits, wealth management, and loan business will likely follow.

It's not surprising that the banking associations are taking the initiative this time. Their logic is probably that these core financial infrastructures should be controlled by licensed, regulated, and well-capitalized traditional institutions, not by those “wildly growing” internet companies. It sounds like it’s for financial stability, but in reality it’s more about protecting vested interests.

On the other hand, if you look at it differently, fintech companies entering this space can indeed lower costs and improve efficiency, and it’s also an opportunity for people without bank accounts. How this contest will eventually end depends on which side the regulators take.