It is necessary to innovate to compete with banks

With the arrival of new financial technologies in the region, the importance of the services they require to carry out their activities increases, according to the latest Finnovista radar in Mexico there are 512 fintech ventures, experts point out that the creation of infrastructure will be key to the development of the sector.

With the banking digital proposals, fintech companies must rely on the infrastructure created to offer services competitively, according to Raymundo Guerrero, regional director of Pomelo México, a trend can be seen in the competition of entities to grant means of payment through cards, despite the limitations that exist in the current payment network.

“Different fintech unicorns that emerged in Mexico, at first they were mounted on infrastructure that is now obsolete, they worked very well at an early stage, but the speed at which these companies need to scale is no longer being supported by those tools, they are going to one speed and the technology providers behind them go,” he added.

Latitude’s “Startup Trends 2022” report indicates that open finance platforms, among others, have provided scalability to finance through access to application programming interfaces (APIs).

In accordance with the above, APIs provide financial institutions with a quick way to connect and communicate with other platforms, thus allowing the integration of functionalities provided to other companies. This technology is expected to help fintechs in their competition with banks. .

sebastian.estrada@eleconomista.mx