Derived from adequate regulations and the particularities of the market, Mexico counts as one of the places in Latin America with great potential for financial technology institutions and investors in this sector.
Currently, Mexico ranks second among the Latin American countries that concentrate the most investment for financing fintech companies,
These investment levels could be considered low when compared to Brazil, where they were reported, in this same year, however, our country still has a valuable growth horizon due to two main reasons:
- A population with low financial inclusion, which represents a potential market to offer these services.
- The great introduction of mobile telephony among Mexicans, which makes it easier to offer investment services.
In addition to these features of the Mexican market, we must not forget that in our country we have one of the most robust regulatory frameworks in terms of financial technology, since the Fintech Law came into force.
Electronic wallets, online payments, promotion of investment projects and credit between people, are just some of the different services that have allowed financial technology institutions to maintain, for some years, in a process of constant and considerable growth in Mexico.
According to the Fintech Radar of the same firm a study carried out in conjunction with the Inter-American Development Bank (IDB), this sector has grown at an average annual rate of 23% in our country, with only 4.5% of ventures that failed to prosper this year and therefore were forced to close.
All the indicators are a sample that, two and a half years after the publication of the Law to Regulate Financial Technology Institutions, better known as the Fintech Law, Mexico appears today on the map of the nations with the greatest potential to promote technological ventures in Latin America.
Javier Estrada Vega
Gloria Ponce de León & Hernández