Standards will be raised for collaborations with fintech

A smaller volume of investment towards the sector of the financial technology caused the restructuring in various firms, due to this, the partners of the fintech The criteria for associating with new firms will change, in addition to the fact that in the coming years the standards for investment within the segment will be raised

During 2022, investment for the fintech industry worldwide amounted to 88.1 billion dollars, which meant 38% less compared to the investment volume registered during 2021, when the sector had funding of 141 billion dollars, according to with data from the firm FT Partners.

The impact of lower investment also extends to companies that collaborate with fintechs in the financial sector. Its partners plan to increase quality standards and will look for projects that have the capacity to generate profitability and impact in the industry.

In the words of Mauricio Schwartzmann, CEO of Mastercard Méxicothe current environment has changed the way in which the firm relates to fintech.

“The focus will be on players who solve a problem or have potential for profitability and the technology they develop. Just as venture capital funds evaluate entrepreneurs, we also rate them when making bets, investments or collaborations to understand what risk we are taking”, commented Schwartzmann.

Less investment, more deals

The trend of a lower investment volume is also observed locally, the Association for Venture Capital Investments in Latin America (Lavca), reports that Latin American startups attracted 2,862 million dollars in the first half of 2022, this is 27% less compared to the same period in 2021; however, the number of agreements grew 58% in the reference period.

Due to this, Schwartzmann indicated that they do not visualize a slowdown in the sector fintech Within the next few years, although the conditions of new agreements will be modified, he added that up to now they have obtained good results and added that 80% of the volume of payments of fintechs with national operations are concentrated in Mexico.

“The Mexican market is doing well, we have not seen a slowdown in fintech, we have seen changes in models, despite everything that is happening we see that the sector is growing, specifically in the last year 26%, we have 650 fintech, there is investment, but it is The mentality of how to evaluate them, how to perceive them and how to take risks has changed”, added the manager.