One in four fintechs in the world was born in Latin America. Despite the different realities of their countries and economic limitations, companies in the region manage to grow and expand. After five years of lightning-fast growth, financial technology companies are now facing the challenge of continuing their growth in a present where global conditions have changed.
Over the past five years, the companies that make up the Fintech Alliance of Ibero-America, a transnational business group made up of the chambers of Argentina, Brazil, Peru, Chile, Dominican Republic, Uruguay, Venezuela and Spainreceived $ 15 billion in investor fundingwhich served to launch the more than 2,600 companies in the sector that coexist in the region.
This yearthe flow of international capital has changed. Investors continued to bet on the region but became more selective in projects. Now companies have to show financial results to grab the attention of their mentors, as well as tell good stories. Numbers that support that funding.
In the regional ranking by number of companies, on the podium is Brazil, with 31% of all companies. Mexico follows with 21%. Argentina and Colombia share third place with 11%. Chile closes the group of the five most developed countries, with 7%. Behind it is a group of emerging markets with Peru, Ecuador and the Dominican Republic in the lead, accounting for 14% of the total.
The representatives of seven countries of the Fintech Alliance who met in recent days in Buenos Aires, as part of the Argentina Fintech Forum, discussed this and other challenges. Beyond the macro realities of each of their economies, they share common goals: the challenge of regulation and attracting talent, a scarce commodity that can put a ceiling on its growth.
“It is very gratifying to receive our colleagues from the region in our country in such an encouraging and thriving context for the sector. The growth of fintech unites and strengthens us, challenging us to work together to deepen this path whose main objective is to achieve the financial inclusion of millions of Latin Americans “, said Mario López, president of Alianza Fintech Iberoamérica on behalf of Argentina.
Source: Clarin
