The Fintech Radar report revealed that the mortality rate of fintech startups in Mexico has dropped to 4.5 percent.
3 min read
The fintech sector in Mexico continues to show excellent dynamism. According to the latest edition of Fintech Radar de México , carried out by Finnovista in collaboration with the Inter-American Development Bank (IDB), the number of startups in this area has grown an average rate of 23% per year.
“The fintech sector in Mexico continues to provide dynamism to the financial industry and the data from this latest edition of the Fintech Radar confirms this. The fact that the sector is growing at an average rate of 23% per year since 2016 and that the mortality rate of startups has decreased from 2018 to this part, guarantee the good state of the ecosystem in Mexico, which is on the way to its consolidation ”Says Andrés Fontao, co-founder and managing partner of Finnovista.
This report evidenced that the number of technology startups applied to the financial industry has increased by 14% in the last year, to stand at 441 startups . Among the most relevant data, the growth of the Insurtech segment stands out – with 38 startups, which represents 46% more than in the previous edition – as well as the fact that the fintech sector as a whole is more attractive to investors and, in particular , for venture capital funds.
Likewise, they found that the mortality rate of fintech startups in Mexico has dropped to 4.5%, which means that only 18 startups stopped operating in this period, almost seven points below the death rate of the previous edition of the report when it stood at 11.3 percent.
Mexico City concentrates 70% of the ventures in this sector, consolidating the capital as the most dynamic Fintech hub in the country and one of the most relevant in Latin America. Monterrey and Guadalajara also have a growing attraction for Mexican fintech companies.
Mexican fintech companies employ an average of 35 people, excluding the most successful startups in the industry that reported employing more than 1,000 professionals. In total, according to Finnovista, it is estimated that fintech companies generate around 60,000 jobs in Mexico. This means that startups in the sector are a pole of attraction for technological talent and contribute to improving employability in this country.