Business

Mexico increases number of fintechs by 16%, says Fintech Radar 2021

Eight out of ten financial institutions in Mexico, Colombia, Peru and Chile have implemented a fintech strategy, according to the report

Illustration by Felipe Mayerle
  • There are 1,102 fintech startups in the Pacific Alliance region (Mexico, Colombia, Peru and Chile);
  • In Mexico, 59% of the fintechs increased their revenues and/or users in the post-pandemic.

Mexico now has 512 fintechs, a 16% increase from 2020, according to the latest Fintech Radar 2021, by Finnovista, the IDB (Inter-American Development Bank), and the Pacific Alliance.

The report notes that there are 1,102 fintech startups in the Pacific Alliance region (Mexico, Colombia, Peru and Chile), and eight out of ten financial institutions in this region have implemented a fintech strategy; almost half (46.5%, 512 of them) of these ventures are in Mexico.

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Colombia accounts for 25.3% of those fintechs, while 16.2% of them are in Chile and 12% in Peru. The main segments present are: loans (22%), payments and remittances (20%), technology companies for financial institutions (12.3%), enterprise finance management (11.1%), financial wellness (7.3%), wealth management (6.8%), insurance (5.9%), open finance (4.2%), real estate services (3.8%), digital banking (3.5%) and financing (2.9%).

In Mexico, 59% of the fintechs increased their revenues and/or users in the post-pandemic. The report also included the Fintech strategy of incumbents in the region, showing that 52% of them have acquired technology, 39% are carrying out brand alliances and 39% are conducting pilot programs to integrate these financial technologies.

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In the Pacific Alliance region, 43.7% of incumbents have a formal strategy, documented and embedded in the culture of the organization, while 28.2% have an informal fintech strategy, 21.1% have no strategy in place and 7% have one, but it is not embedded in the organization.

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