Fintech Companies Focused on SMEs Would Grow More

Fintech companies specialized in serving businesses have greater opportunities to survive in this scenario due to their characteristics and competitive advantages, revealed a recent study by the consulting firm, KoreFusion.

According to the document, financial companies focused on small and medium-sized companies (SMEs) in Latin America stand out for the opportunity to attract the greatest risk capital investment. According to the information in said report, in the last two years, fintech companies focused on serving this segment have raised $15.2 billion.

Read more on the subject and find other interesting financial news from around the world with the Born2Invest mobile app

How many fintech companies specialized in SMEshave raised investments

However, the firm highlighted that in the region 23 fintech companies specialized in serving businesses have captured 87% of these investments, that is, $13.2 billion, which could be a sign of the opportunity of these firms in the SME segment.

The consulting firm indicated that in Latin America, Mexico was placed behind Brazil as the country in which fintech companies focused on serving SMEs raised the most investment, with $2.7 billion, where the Colvalto bank stood out; other financial companies such as Kapital, Konfío and Clara, and technological companies such as Clip.

Jaime Edelshein, KoreFusion consultant, commented that technology finance companies that maintain a more complete service offering for SMEs could obtain more investments with higher valuations, so these fintech companies would lean towards a regional expansion strategy.

“Fintech companies focused on providing innovation to SMEs will continue to evolve over time. On the one hand, those that offer a single product will raise early investment in order to consolidate themselves as leaders in their niche,” said Edelshein.

According to research, more than 22 million businesses are not supported by financial technology. While fintech companies specialized in serving the SME market consider that there is a significant gap in the solutions offered regarding access to credit, user experience and costs.

__

(Featured image by  Agustin Diaz Gargiulo via Unsplash)

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 articles from the originals. In case of discrepancy, the originals 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