Mexico City is the capital of Fintech in LatAm

Mexico has become one of the largest entrepreneurship hubs in the region, for Fintech startups looking to grow and scale in Latin America.

The Trend Report of Startupbootcamp FinTech in Mexico City confirms the drive of these acceleration and escalation programs to consolidate Mexico as a Fintech hub in LatAm.

The Startupbootcamp FinTech report in Mexico City ‘The impact of Fintech innovations in Mexico’, prepared in collaboration with EY, identifies financial inclusion, cybersecurity, and the development of regulation as drivers of change in the Fintech ecosystem in Mexico and in Latin America.

According to the report, Mexico has become one of the largest entrepreneurship hubs in the region, for Fintech startups looking to grow and scale in Latin America.

The Startupbootcamp FinTech report indicates that one of the main reasons why Mexico has positioned itself at the forefront, together with Brazil, in promoting and supporting the undertaking of innovations in financial services is due to the window of opportunities that financial inclusion opens to Fintechs, and that the regulation in this regard in Mexico is helping to develop. In addition, the report confirms the appetite of international venture capital to invest in Fintech startups in Latin America, thus highlighting its role as a growth engine in Mexico.

In terms of financial inclusion, the Startupbootcamp FinTech report shows that 17% of Fintech startups in Mexico target their solutions to the underbanked population, while only 6% focus on the unbanked. The report points out that, in order to continue tackling the challenge of financial inclusion, it would be necessary for these proportions will improve.

In this sense, the Startupbootcamp FinTech trends report, in addition to showing the importance of Fintech innovations in the region, reflects how the programs of Startupbootcamp in Mexico City have helped grow and scale 45 ventures in Latin America, consolidating Finnovista as the impact organization with the largest number of investments in Fintech ventures in America Latin.

According to the report, 86.6% of startups participating in Startupbootcamp’s acceleration and escalation programs in Mexico City are from Latin America. Specifically, in addition to 53.5% originating in Mexico, others have been from countries Latin Americans such as Peru (8%), Argentina (6%), Colombia, Ecuador, and Chile (the latter three with 4.4%).

All of them have managed not only to grow and scale their solutions,
giving new financial opportunities to the population of the region, but also, as in the case of Prestanómico, PayIt or Konsigue, integrating their services in the value chain of the region’s financial services.

The document also mentions the importance of regulation in Fintech and everything that has been done in that regard both in Mexico and in the rest of the region, and how, both startups and financial institutions are seeing cybersecurity as a key factor to provide confidence to users of financial services and products and continue to grow.

Fintech in Mexico

Mexico is the second country with the most Fintech startups in the region since there has been an average annual increase in the number of Fintech startups in the country. 23% in the last five years. One of the driving forces behind the transformation of Fintech in Mexico and in the region lies in the interest of international venture capital funds, who have put the magnifying glass on some of the most relevant Fintech ventures and are following their evolution with appetite.

The report indicates that Mexico is the country in the region with the greatest potential to develop solutions that enhance the financial inclusion of the population. In fact, one piece of information presented as a great opportunity in the report is how Latin America has become the continent where financial inclusion is one of the most relevant challenges, presenting 6 countries in the region within the top ten positions in the financial inclusion ranking in terms of regulation and infrastructure, and in which Mexico is in fourth place for its legal terms and sixth for its key factors that facilitate its inclusion, factors that include some government initiatives.

“There are various segments of the population that still do not have access to these financial products or services, which generates a great demand to serve and endless opportunities for this type of undertaking. Fintech startups play a very important role in empowering, developing and meeting these demands and collaborating with financial institutions in innovations that create impact not only nationally but even globally ”, says Fermín Bueno, Co-Founder & Managing Partner of Finnovista .