Mexico has made a historic investment of more than $ 1.3 billion in fintech (financial technology companies), according to a survey by KoreFusion. This was reported by Uniradio Noticias on August 28th.
This was also highlighted in the report entitled “Fintech in Latin America 2020” Fintech, specializing in lending, has the highest recovery in Mexico with investments of $ 941 million, followed by cash at $ 206 million and digital banks at $ 98 million.
“Alejandro González, Senior Consultant at KoreFusion, emphasized that only 10 percent of fintech companies publish their figures. Despite this small number, however, it was possible to record revenues of more than a billion dollars ”, according to the article by Uniradio Noticias.
However, they made it clear that Jan Smith, co-founder of KoreFusion, spoke about the possibilities of fintech in Latin America and that these could be affected by the Covid-19 pandemic:
“Covid-19 is a very important factor in the relationship between the population and financial technology services. The maturity that startups deal with and their ability to forge new alliances to create larger investments will be critical to current challenges deal with. “
On the other hand, this was taken into account With the Fintech Act coming into force in 2018, Mexico became one of the first countries in Latin America to pass a law regulating the services of financial technology companies. “The law provides for the regulation of electronic payments, collective funding, virtual asset management and the provision of financial advice,” they said.
Fintech in Latin America
Cointelegraph en Español repeated the KoreFusion report on August 26th. According to the same report, The fintech sector in Latin America reached a historic investment of more than $ 8 billion. There are three sectors that concentrate more than 95% of all investments in fintech startups in Latin America, with the payments category accounting for 50.5% of the total, followed by lending with 24.5% and digital banks with 21.6%.
KoreFusion is a strategic advisory and transaction firm specializing in the financial services, fintech and payments sectors, and has submitted its Fintech Latin America 2020 report to Cointelegraph en Español.
The report responds to the need to provide more analysis and granularity of information to support investments in the sector. The study allows for the identification of the fintech categories that have attracted the most investment and provides a deep understanding of the maturity of ecosystems in Mexico, Brazil, Argentina, Chile, and Colombia.
“It is clear that the changes in the industry since 2008 are not enough and that the scenario created by Covid-19 will continue to change the landscape for all players: banks and fintech,” said Jan Smith, co-founder of KoreFusion.
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