LatAm: Mexico crowned Latin American fintech leader

Fintech accelerator Finnovista has published its most recent Fintech Radar report for Mexico, revealing that Mexico is leading fintech development in Latin America by number of fintech ventures, with 238 Mexican fintech start-ups identified in June this year.

The report, carried out by Finnovista and The Inter-American Development Bank (IDB), also highlights the fast pace of change in the fintech scene, finding a 50% increase in the number of Mexican fintech start-ups since the previous study, carried out just 10 months earlier. This growth has been driven mainly by fintechs based in certain sectors, namely insurance, lending, enterprise and personal financial management, and financial education. In fact, lending has now overtaken payments and remittances as the most common type of fintech in Mexico. RFi Group data suggests that lending to fintechs could be well positioned in the Mexican market, with 56% of Mexican consumers intending to either maintain or increase their borrowing in the next 12 months, and 64% saying they would be comfortable (6+ on a scale of 1 to 10, where 10 is extremely comfortable), using a digital-only provider to meet their borrowing needs.

According to the study, the Mexican fintech boom has been driven by high internet and mobile device penetration, a strong entrepreneurship and e-commerce ecosystem, low banking penetration, and under-developed consumer lending.

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