The FinTech sector seems not to be very affected by external shocks, this is true, especially in Latin America.
Latin American FinTechs has received more than 300 million dollars in financing in the month of August alone, which demonstrates the strength and progress of the sector.
Despite the violent macroeconomic environment that persists in the financial and commercial sectors in almost all the world; The FinTech sector does not seem to be very affected, this is especially true in Latin America, where companies in the sector, and especially startups, have had a surprising degree of capital attraction so far this year.
According to information from the Latam Fintech Hub and Valora Analitik, Latin American FinTechs have received more than 300 million dollars in financing in August alone. Besides, the figure was distributed among 18 different companies.
The progress of startups and established companies in the FinTech sector is a remarkable phenomenon in Latin America. The event has been influential for several years now and has even been the subject of study by the Ibero-American Development Bank (IDB).
The IDB found that with 2,482 financial technology platforms, Latin America represents 23% of Fintechs worldwide. In addition, within this ecosystem, the countries that lead the way are Brazil, where 31% of this type of company is located, Mexico (21%), Colombia (11%), and Argentina (11%).
Latin America Fintech Market 2022
In this context and with the aim of bringing together the most important FinTechs in Ibero-America; The Colombia Fintech guild organized the fourth version of the Latam Fintech Market 2022, which took place on September 27 in Medellín. The capital of Antioquia was chosen for this contest in which the trends, challenges, and projections of the sector will be presented.
This event was attended by more than 15 commercial stands, 6 conferences, and 4 panels; all of them focused on Digital Credit, Open Banking, Global Fintech Trend, Disruptive Models, Digital Payments, and Fintech Unicorns.
Also; had a networking space such as the Fintech Party. Likewise; the Latam Fintech Market 2022 had a capacity for more than 850 attendees and more than 18 national and international speakers, as well as 450 attendees in the Fintech Talks space.
Latin America and the Fintech sector
Thanks to an exhaustive study carried out by the firm KoreFusion, it has been verified that around 1,047 FinTech companies in Latin America added capital for more than 8,092 million dollars in 2020 alone, the year of greatest impact of the coronavirus pandemic. This shows that the sector seems to be quite resilient, even in the face of external shocks such as Covid, or the current war between Russia and Ukraine.
Nowadays, companies are looking for new methods to keep the financial life of their respective businesses afloat. FinTech companies have had to overcome some obstacles, although this has not prevented them from moving forward and expanding.
On the other hand, FinTech companies still have to deal with the regulation of this type of technology in different countries.
Given this, the regulators of countries such as Chile, Colombia, and Paraguay have already set their sights on cryptocurrencies, Blockchains, and financial technology in general, with a view to building the most convenient regulation in this regard in their territories. Finally, Brazil, Mexico, and Argentina are positioned as leaders in the sector.
By Audy Castaneda
