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Amid digital challenges, the fintech sector in Mexico will continue to grow in 2021

The coronavirus pandemic has taken its toll on several economic sectors and has turned markets upside down. However, one sector thrived in 2020, the fintech sector. The Bank of Mexico (BdeM) recently assured that the need for contactless payments in order to curb the spread of the pandemic has sparked the adoption of digital tools among consumers.

Desmond O'Flynn

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This 2021 will be a year in which the industry of financial technology companies, fintech companies, will continue to grow and advance, due to the isolation measures in place because of the COVID-19 pandemic. In this environment, it is elementary that these companies continue to implement efficient methods to support customers, according to the fintech company Albo.

“2020 has been one of the most important years for the fintech industry. Consumers, households and businesses alike have had to rely on the digital world much more than at any time before due to the pandemic. Advances in this industry are aimed at helping people use services to navigate risk-free, avoid overspending and generally better manage their finances,” said Juan Pablo Rojas, product director at Albo.

If you want to read more about the evolution of the fintech sector in 2020 and how the pandemic boosted this particular segment, download for free the Born2Invest mobile app. Our companion app brings you the latest financial news in the world so you can stay informed.

How the pandemic helped the fintech sector

In this sense, fintech companies should focus on six trends that will continue to boom throughout the year, such as the dissemination of financial education products and solutions, contactless payments, artificial intelligence, biometrics, voice technology, and e-commerce.

According to Albo, in terms of the dissemination of products and solutions in support of financial education, solutions have been designed to support the financial education of customers, such as coaching, a segment that has grown in the last year due to greater interest of people in investing.

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Meanwhile, in the contactless payments segment, a survey conducted jointly by the National Retail Federation and Forrester Research reveals that 19 percent of U.S. consumers made a contactless digital payment for the first time in May 2020, with nearly two-thirds of them using a smartphone to do so.

“The need for contactless payments to curb the spread of COVID-19 will detonate the massive adoption of digital collections,” the Bank of Mexico (BdeM) recently assured.

For artificial intelligence, this 2021, financial technology applications will continue to apply it to serve and get to know the customer, with various means such as bots in company chats and other more advanced functionalities.

In turn, cybersecurity has been one of the topics that has taken on greater relevance among internet users in recent months, and at a time when digital banking and customer data are within the reach of cybercriminals, it is essential for organizations operating in the fintech industry to take all available security measures.

“Biometrics is the best way to take security to the next level, giving users confidence that their data is protected. The use of biometric technology for identity verification will grow, but contactless solutions are going to take over the tactile fingerprint reader market,” considered Albo.

In turn, he said, voice assistants can act as an automated support agent by providing basic data about the user’s account, and voice can be used as biometric data to authorize payments, also known as voice payments.

“The aforementioned trends arise from the needs of customers who require greater access to financial information in an easy and secure way at any time, the pandemic accelerated digital transformation,” concluded Rojas.

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(Featured image by Jezael Melgoza via Unsplash)

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First published in LaJornada, 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.

Desmond O’Flynn believes in minimalism and the power of beer. As a young reporter for some of the largest national publications, he has lived in the world of finance and investing for nearly three decades. He has since included world politics and the global economy in his portfolio. He also writes about entrepreneurs and small businesses, as well as innovation in fintech, gambling, and cannabis industries.