The dark panorama that is foreseen in the following months in different sectors of the economy does not make the Fintech ecosystem tremble; on the contrary, the scenario is favorable due to signs that it had during 2020.
Participants of the fintech ecosystem agreed that although the coronavirus pandemic has hit different branches of the economy, digital financial services came out well and they assured that, although 2021 will bring challenges such as regulation, there will be a period of dynamism and an expansion of services from the platforms that have been consolidated in the Mexican market.
“Confinement orders, mobility restrictions, and fear of contagion have really accelerated consumer adoption of these digital financial services, and a large part of fintech solutions revolve around digital technologies,” explained Andrés Fontao, co-founder of the Finnovista accelerator, in an interview.
Read more on the subject and fine other important financial headlines with our companion app, Born2Invest.
In the last part of 2020, there were signs that made the ecosystem take off before 2021.
Two platforms already consolidated in the market, Bitso and Albo, made important announcements regarding the rise of venture capital
In the case of Bitso, the virtual asset exchange platform, announced a capital raising of $62 million in an investment round led by Kaszek Ventures and QED Investors, which will be used for its expansion in Latin America.
For its part, Albo, the platform that operates a debit product through its application and a physical card, announced the closing of a Series B investment round for $45 million, led by funds such as Valar Ventures, Mountain Nazca and Greyhound Capital, which will serve to expand its client base, currently of 500,000 users, as well as introduce new products such as credit.
“Investors are seeing a market eager for these fintech needs, there are many examples of how society in Mexico is looking for alternatives to traditional banking (…) to Albo, investors see it as a platform that is dominating, with so much strength in the market, that they want to bet on the winning horse and are confident that we will build the biggest bank that Mexico has ever seen,” said Angel Sahagun Arcila, founder of Albo.
Fintech Konfío, which focuses on providing credit to small and medium-sized companies, announced the acquisition of Mexican software company Gestionix to improve its operations.
“These three transactions are signs that the fintech theme is here to stay. Before, they were small bets, small investments to test, to validate the business models of the startups, to see how serious the regulator was, if the consumer was going to adopt the fintech solutions. But only with those three transactions I think that the market’s signal is that the fintech ecosystem is here and it is going to detonate in a good way,” Fontao explained.
Although in 2020 it was expected that the regulatory issue would be more advanced with respect to authorizations, there are 80 files waiting to be resolved in order to know if they should be authorized under the Fintech Act, this is not an obstacle that will make the ecosystem nervous, since the challenges will focus on how to raise more capital, especially from Mexican funds, according to Andres Fontao.
“2021 will be a new era, we will move from the fintech 1.0 ecosystem to fintech 2.0, of exponential adoption by the consumer, significant and relevant investment by the venture capitalist,” said the Finnovista representative.
In March 2018, the Law to Regulate Financial Technology Institutions was enacted, which seeks to regulate the operation of two types of platforms such as Electronic Payment Funds or Collective Financing institutions.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in EL ECONOMISTA, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Next bitcoin price rally brewing due to stablecoin inflows on exchanges
In the cryptocurrency market, many traders exchange crypto assets like Bitcoin for stablecoins when they are unsure of the upside...
Grifols takes its plasma to the Murcia Health Service for €3 million
The Spanish company will supply plasma to the Regional Center for Hemodonation of the Region of Murcia (CRH) for two...
How the regulation of medical cannabis in Brazil has developed
Over the past year, Anvisa has made some decisions that have improved access to medicines based on medical cannabis but...
FORMATION.GG tackles the esports tournament industry, giving everyone a chance to win
The world of esports is fiercely competitive, but the rewards are often limited to elite squads of professional players and...
Tourism revival in Morocco: a study of the three most promising markets
To prepare the resumption of tourism, the Moroccan National Tourism Office is studying all the promising niches. Among other things,...
Featured6 days ago
Sonnedix takes over two photovoltaic plants in the Marche region
Crowdfunding5 days ago
The gaming industry also grew on crowdfunding platforms during 2020
Featured5 days ago
Why did interest rates as measured by the U.S. 10-year treasury note soar over 1% this past week
Biotech5 days ago
AcceXible is looking for up to €450,000 and expects a turnover of one million in 2021