International trade experts have highlighted the recent boom in fintech startups in Mexico as an example of what the region can achieve for this sector. The massive growth in fintech companies, up to 1166 this year in Mexico is highly symbolic of what this region can achieve, and a blueprint for future success. After past decades of economic turmoil and instability, the rise in Mexican fintech has shown that people are willing to use alternatives ways of managing their finances on a large scale.
Mexico contains 23% of all fintech startups, on a continent where five years ago the concept was unknown. These startups have shown both a booming entrepreneurial spirit in Mexico, but also a growing tendency to internationalisation, an outward-looking mindset that gives great hope for the future. After the 2008 global crash, there has been a pronounced distrust in conventional, established banks in Mexico, with only 54% of people across Latin American holding a bank account in 2017.
These fintech startups are a local, communal way of carrying out business, that do not need a complex financial education and instead rely upon a personal understanding and trust that allows business to flourish even in areas with limited connectivity. Fintech companies provide a low-cost, low-tech solution to basic financial issues with not penalty to efficiency or effectiveness. Mexico can be a pioneer for the rest of Latin America in providing a model that puts the customers first and ensures ease of access for all. The recent Ley Fintech (Fintech Law) has ensured that fintech startups are reasonably regulated, and the sort of thoughtless breakaway that has led to the lowered Mexican distrust in banks has been limited. The Mexican fintech model is a superb example of how to seamlessly integrate this technology into society, while ensuring that customers stay first.