Mexico reached a historical investment of more than USD 1.3 billion in the Bitcoin Revolution sector (financial technology companies), according to a KoreFusion survey. This was reported by Uniradio Noticias, on August 28th.
In the report, called „Fintech en Latinoamérica 2020“, it was also highlighted that the fintech companies specialized in credits are the ones with the highest increase in Mexico, with investments of USD 941 million, followed by the means of payment with USD 206 million and the digital banks with USD 98 million.
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„Alejandro Gonzalez, senior consultant of KoreFusion stressed that only 10 percent of the fintech companies make public their figures; however, even with that low number they have been able to register revenues of more than one billion dollars,“ detailed the article in Uniradio Noticias.
However, they clarified that Jan Smith, co-founder of KoreFusion, spoke about the possibilities of fintech in Latin America and that these could be affected by the Covid-19 pandemic:
„Covid-19 is a very important factor in the relationship between the population and financial technology services. The maturity with which emerging companies will cope and their ability to deploy new partnerships to create greater investment will be essential to overcome current challenges“.
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On the other hand, it was taken into account that the entry into force of the Fintech Act in 2018 made Mexico one of the first countries in Latin America to approve a law regulating the services provided by financial technology companies. „The law contemplates the regulation of electronic payments, collective financing, virtual asset management and an offer of financial advice,“ they said.
Fintech in Latin America
Cointelegraph en Español echoed the KoreFusion report on August 26. According to the same report, the fintech sector in Latin America reached a historical investment of more than USD 8 billion. Three sectors account for more than 95% of all investment in fintech startups in Latin America, with the Payments category accounting for 50.5% of the total, followed by Loans with 24.5% and Digital Banks with 21.6%.
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KoreFusion is a strategic consulting and transaction firm specializing in the financial services, fintech and payments sectors, and shared with Cointelegraph en Español its Fintech Report on Latin America 2020.
The report responds to the need for more analysis and granularity of information to support targeted investment in the sector. The study identifies the fintech categories that have been able to attract the most investment, and offers a deep understanding of the maturity of ecosystems in Mexico, Brazil, Argentina, Chile and Colombia.
„It is clear that the changes generated in the sector since 2008 have not been sufficient and that the scenario generated by Covid-19 will further change the landscape for all players: banks and fintech,“ said Jan Smith, co-founder of KoreFusion.