Go on and drink some tequila why you’re reading this, amigo.
If you’re not too familiar with the concept, fintech (which really resembles “financial technology”) is an economic industry composed of companies that use technology to make financial services more efficient. Some media such as Wharton Fintech describe fintech companies generally as “startups trying to disintermediate incumbent financial systems and challenge traditional corporations that are less reliant on software” (although that’s not always the scenario).
80 million potential users
So… you know, when people speak about fintech, we normally get to hear about European and Asian banking institutions which are just doing wonderful.
But you may want to look out down the Río Bravo, from Chihuahua Desert to the jungle in Chiapas: Mexico’s living its own fintech revolution and it’s worth to analyze it.
Fintech industry grows and grows and it has transformed itself into one of the most secure industries for venture capital and private equity investment; even Goldman Sachs states that in 2016 this industry can be worth 5 billion dollars worldwide (err… you know, USA says billion, but it’s 5,000,000,000,000 dollars to be precise).
And yes, Mexico has sure taken advantage of that. A series of telecomm reforms have wide opened the industry, leading to a point where 90% of Mexican adults now own a smartphone with Internet access (that’s about 80 million people).
Mexico and its own receta for fintech revolution
Among with the gargantuan number of potential users, data from studies such as the Encuesta Nacional de Inclusión Financiera 2015 (provided by Mexican Government) highlights that around 52 million Mexicans have at least one banking app within their smartphones.
In-between the fintech industry in Mexico, we can find powerful and very well detailed apps from banking institutions such as BBVA Bancomer, Banorte or BANAMEX, as well as fintech solutions such as Conekta.
As you may get it now, Mexican fintech is not only house held by the major players; entrepreneurs, investors and communities are shape shifting the financial ecosystem in this country (many experts state that this is part of a so called “Mexican Moment”).
Mexico may get to see a bright and new future with multiple social and economic benefits, and banking institutions and companies know it well: with that astounding quantity of compadres and comadres living in Mexico, the road is just settled up for anyone who wants to find glory in this land.