Information on Fintech's second edition of 2018 in Latin America, developed by IDB and Finnovista, can not be more positive: 1166 Fintech new companies are identified in the region, reflecting a 66% increase since the first measurement in 2017, in which 703 companies were identified.
Two out of three operations are already in advanced stages of development, and Fintech's activity last year rose from 15 to 18 countries. Brazil is the country that promotes the most companies with 380, followed by Mexico with 273, Colombia with 148, Argentina with 116, and Chile with 84 (FinteChile speaks 90, although due to different research dates, where months are different)
In any case, Chile is a state of the South American region with the largest concentration of Fintech companies in terms of population density, in particular reaching 4.17 enterprises per 1 million inhabitants, which is higher than Mexican submitted 2.78 and 2.5 million. Colombia and Argentina, according to information provided by FinteChile, an association representing and strengthening the Chilean Fintech industry.
"This is Iceberg last year's move, which only pledges to continue to accelerate in the coming years, reflecting not only the increase in the number of actors that have been part of the Fintech ecosystem ever since it was set up, but also financial institutions that cooperate with them, but rather other actors like the local venture capitalists, "says Juan Miguel Tirado, Gosket Regional Marketing Director, a company that is actively involved in the Fintech system through electronic factoring.
In fact, invoicing accounts for 10.4% of the number of solutions offered, and lending solutions and transparency are the bulk:
Other areas of this growth and segments
There are other manifestations of this Fintech solution as well: one out of three companies announces that they have expanded their activities beyond national boundaries.
"Although five countries account for 86% of the region's Fintech companies, each Latin American country has identified initiatives and an internationalization trend that shows entrepreneurs the ability to perceive, but also the importance of continuing to strengthen dialogue and coordination at regional level," commented JBAN Ketterer, IDB Communications, Market and Finance Division.
The main segment of the business continues to be the payment and remittance segment, accounting for 24% of the identified companies (totaling 285), followed by the lending segment (18%) and business finance management (15%). It also points to the rapid growth of digital banking segments, and in particular credit rating, identity and fraud.
Money transfers and payments are strongly linked to the inclusion of smart mobile devices among the population, and the high level of population exclusion from the formal financial services scheme has affected their growth due to lack of account.
With regard to loans, companies were raised because of high interest rates on costs, bureaucratic obstacles and traditional financial institutions. At the same time, corporate finance management was supported by new opportunities for small and medium-sized enterprises representing 90% of Latin America and the Caribbean.