Sunday , March 7 2021

Fintech Business Growth in Colombia in 2018

The "fintech" ecosystem in Colombia is much more pronounced than ever before, in the third most important region, only surpassed Brazil and Mexico respectively.

It is, therefore, based on indicators such as number of companies, mortality rates and country-by-country contributions to this segment. Fintech is a technology-driven activity that revolutionizes the financial industry and grows at a fast pace.

This is reflected in the report Fintech Latin America 2018: Growth and Consolidation, revealed by the Inter-American Development Bank (IDB) and Finnovista, which signed the 1666 "fintech", which has increased by 66 percent since 66 years in both institutions.

Of the three largest "fintech" ecosystems, Colombia is the one who grows the most and grows 76% each year. ranging from 84 to 148 companies.

The largest increase in this country was the number of credits, identity and fraud (450%). They are followed by property management (300%), business finance management (111%) and loans (80%).

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According to the report, these increases show again "the need for the market to incorporate solutions that stop the risks associated with the development of more technology".

On the other hand, in the first edition of the region, 703, companies found that over the past 12 months 85 companies had ceased their operations, which allows a mortality rate of 12%.

With regard to investment attractiveness, the Brazilian Nubank from Colombia's David Vélez is ranked as one that has increased the most capital in the region, with a deal of $ 250 million in real December 2017.

Columbia Sempli stands out with a ranking of $ 3.6 million in September 2017 and TPAG, which raised $ 2.2 million in October 2017.

Facing this dynamism, Finnovista's partner Andrés Fontao emphasizes that this opportunity "is already at the forefront of large international investors, including Asian, and we have the first government to Adopt special regulatory guidelines for fintechs. "

Dialogue with MoneyGabriela Andrade, an IDB financial market specialist and one of the co-ordinators of the paper, explained that it is interesting to see that the industry continues to grow with many actors and that many are consolidating.

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"As these companies consolidate, reach the scale, their impact will be visible and win more customers, this growth dynamics without such a high mortality is important for the industry," said Andrade. .

He also emphasized that the increase in "fintech" is related to market opportunities to the extent that there are more smartphones and more connections, because it opens the way for these business models. He also referred to generation change as more and more people are demanding digital solutions and are subject to regional entrepreneurs.

"This growth contributes to financial inclusion, and at the same time we need to understand that as it turns out it has changed in the public sector, there is not dialogue and openness in all countries, but in large markets, if you see, I believe that this positive government of many the attitude to financial system innovation also encourages more entrepreneurs to try more investors to dare invest in these companies, "added IDB official.

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