Pandemic Gives a Boost to the Fintech Sector in Mexico; Number of Companies Grows 21% in 2021

Although fintech regulations in Mexico have not significantly impacted the sector's growth, the dialogue with regulators is considered positive by 43% of the companies, while 54% rate it as deficient. In the Pacific Alliance, comprised of Chile, Colombia, Mexico, and Peru, 1,102 fintech startups have been identified, surpassing Brazil's main market, which has 771 companies. Fontao highlights that 47% of Latin America's fintech companies are located in these four countries and points out three key segments: lending, payments and remittances, and technology providers for financial institutions. 

As the fintech ecosystem continues to grow in the region, traditional banks have also experienced changes. 76% of the surveyed banks reported an increase in their digital channels due to the health contingency. 17% of traditional financial institutions are already developing their own fintech solutions, while 25% are not collaborating with this type of companies. Over the next 3 to 5 years, the roles of each actor in the fintech ecosystem will be defined, leading to more alliances or competition between traditional banks and fintech companies.