SMEs, in the sights of fintech

Financial technology companies are going through a complex economic environment, firms are facing lower levels of investment and a greater number of competitors, which is why a segment of fintechs seeks to focus on serving more stable markets in small and medium-sized companies ( SMEs) specialized.

According to experts, 2023 will be a difficult year to obtain financing in fintech, compared to the funding that was observed between 2020 and 2021, a period in which nine unicorns were born, companies whose valuation exceeds 1,000 million dollars.

“We have to get used to the fact that not everything is going to be rosy, in recent months there have been layoffs in the sector. In an ecosystem where the number of companies has consistently grown in the last 10 years, it is normal that if there are more firms, a failure rate looks more scandalous,” said Damaris Mendoza Loera, partner of the 500 LatAm fund.

Despite the complex environment projected by the firms towards the beginning of this year, the SME segment continues as one in which greater opportunities are expected, due to the fact that the needs in terms of digitization and financing are extensive.

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In this sense, Nathan Schorr, executive director of the Flexio platform, comments that technology companies constantly identify the needs of SMEs, in which the processing related to collection stands out, since these are high and the platforms have taken advantage of these complications. .

We observe that of the different complexities that companies go through, one of importance is that they are ineffective for collection”.

sebastian.estrada@eleconomista.mx