MD Finance presents its first issue of the “FinTech in a Nutshell” series, showcasing the key insights of local lending and loan ecosystems shaping the global industry.
Continuous learning and knowledge sharing are our core values. They are the driving force of our business's rapid growth. By launching this series, we want to bring our values to the industry level, as only collective efforts drive us to excel.
This study encompasses insights from analyzing over 100 open-source databases and materials and our team's expertise. To start, let's dive into the overview of the FinTech market in Mexico.
Mexico in a global FinTech landscape
Mexico's FinTech industry is booming due to a vast market of 130 million potential customers, the fast digitalization of the financial system, and the dynamic regulatory environment.
In 2023, Mexico solidified its position among the top ten countries globally based on the number of operating FinTech companies. It also remains the second most active Latin American FinTech country behind Brazil.
The local ecosystems consist of 10 segments, with Enterprise Financial Management and PropTech being the fastest-growing segments.
Lending is the largest segment of the local FinTech space, which comprises 165 local and foreign companies. These are the key players in the market:
Investments in Mexico's FinTech
Fintech in Mexico commands more than a fifth of the nation's venture capital. It boasts a pool of 200+ startups that have collectively garnered over $600 million in equity financing from investors. Investor interest is steadily increasing, leading to a surge in both the number and size of funding rounds and deals.
FinTech Trends in Mexico
1. Instant payment infrastructures
The global real-time payments market size is expected to expand at a compound annual growth rate (CAGR) of 33.0% to 2028.
2. “Interest rate war”
Banks use high-yield interest rates on deposits to compete in the rapidly expanding market of savers. The market will also be affected by presidential elections.
3. Rise of Enterprise FinTech
Its funding presents higher growth and less retraction for investors (McKinsey).
4. Artificial Inteligence
52% of FinTech companies are implementing AI in their processes and offerings, from customer service to credit scoring and financial copilot.
5. Embedded finance
This technology enables companies outside the financial sector to provide financial services to their customers (payments, loans, insurance, investment).
Find out more by downloading our full report.
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