Fintechs are experiencing a boom in Latin America since eThere are around 2,300 companies of this type in the regionHowever, they continue with strong growth and it is expected that this year capital investments in this sector could reach 7.5 billion dollars.
In accordance with Finnovista co-founder Andrés Fontao, Mexico and Brazil lead this industry, by concentrating more than half firms; but if Argentina, Chile and Colombia are added to them, these 5 countries with more than 80%.
In this sense, he stressed that only in the first semester of 2021 recorded a record investment in venture capital in Latin America, which reached 6.4 billion dollars, according to data from the Latin American Venture Capital Association.
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However, Andrés Fontao indicated that By the end of 2021, this figure is expected to reach 10 billion or up to 15 billion dollars, of which almost half is going to Fintechs.
He explained that those who are monopolizing investments are the large Fintech companies, such as Nubank, Clip and Ualá, but also smaller ones such as Flink, among others.
So for the co-founder of Finnovista, las Fintechs should no longer be seen as a vertical, but as a technological platform as have the Internet and the cloud.
“The development of favorable regulatory frameworks within the region, starting from Mexico but also including countries such as Brazil, Chile, Colombia and Argentina, is doing very favorable, especially with regard to open finance issues,” he stated.
He also said that this is what is allowing companies in the sector to become that technological platform that makes it possible for any company to offer financial services.
“Without going any further, we are already seeing companies such as Rappi or Mercado Libre in the region, offering financial services to their clients, as well as small and medium-sized companies,” he exemplified.
He also presented Finnosummit 2021 that will take place from September 28 to 30, where the future of banking and another financial sector such as insurance will be discussed, in the face of the emergence of Fintech.
He stressed that in a difficult economic environment and in which there is a lack of financial inclusion, the sector becomes one of the priorities that would allow strengthening access to financial services, and will accelerate the recovery in the post-pandemic stage.
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