Competition and consolidation in Fintech is defined

Technologies are gaining more ground in the Mexican financial system; however, the segment is going through a definition stage in which the competition is stiffening and some firms choose to abandon the race.

In a panel conducted by the logistics firm 99 minutes, the presence of new entities was highlighted, whose presence could change the scenario of the fintech ecosystem in Mexico, which is going through a moment of consolidation.

“New fintechs start and suddenly there are others that no longer exist; others that were perhaps going to fall off and suddenly grow back there; some are no longer active and suddenly return, which indicates that a definition is already taking place in the sector. It is necessary to observe how all this will evolve in the next two or three years”, explained Héctor Suárez, director of operations of Stori.

The Mexican fintech ecosystem is one of the largest in the world. More than 844 financial technology companies that operate internally have been identified, which positions the country in ninth place globally with more entities, according to data from the Finnovating platform.

Despite the size of the sector, the global scenarios would cause it to undergo changes, highlighted the panel participants.

“It is difficult to say how many companies have exited. This will take at least 18 months to adjust”, explained Gustavo Rojo, executive director of Vexi.

In addition to the arrival of the entities, Patrick Lassauzet, head of marketing at 99 minutes, stressed that it seems like a difficult year for fintech companies, since in addition to the above, the closure of important American banks for the sector such as Silicon Valley was added. Bank and the greater presence of Mexican banks in competition for the same segments as the technology companies.

Given the arrival of new players, he stressed that financial technology companies will have to take advantage of the advantages they have in their operation, the main part being technological innovation that can give them an advantage over traditional players.

“You have to know where we stand and how the scenario is going to change, analyze what our clients have to see what things they may be doing, because these traditional entities are also putting a lot of resources into innovation and user experience,” Red explained.

sebastian.estrada@eleconomista.mx