Mexico aims to be a smart city thanks to Fintech

The technology in the financial sector can help to position Mexico as an economic force in Latin America, according to financial expert Alexis Nickin.

For the specialist, technological innovation in the financial sector has generated new opportunities in many areas. For example, it allowed Small and Medium Enterprises (SMEs) to gain credits and short-term benefits, which if they had been requested through traditional banking would have been expensive and complicated due to the processes.

These opportunities produced a growth of 18 percent in the Fintech ecosystem of Mexico, where about 400 fintech startups were created in 2018 alone, placing Mexico as a leader in the Latin American region.

On the other hand, the user experience improved significantly, since 56% of Mexicans want to pay with a smartphone and 55% of users of finance applications seek to make specific operations easier. There is also the possibility that users can obtain a personalized service through profiles. In this way, the services that customers need are better focused.

According to Alexis Nickin, the incorporation of Fintech to SMEs is essential since digital consumers in Mexico prefer to use this type of platform as a means of payment.

“New technologies have come to change the lifestyle of people and went from being a great innovation to being part of the daily lives of thousands of Mexicans, so it is necessary for companies to understand the new behaviors of digital consumers in Mexico and implement the best of financial technology,” said Nickin.

With the application of the financial ecosystem, new tools and opportunities were also deployed. Options such as crowdfunding, investment platforms, mobile banking, legaltech or regtech are tools that open up even more possibilities for services to users, while promoting the development, growth and consolidation of the sector.

According to Fintech Radar, most of the financial innovation is concentrated in the Mexican capital, since there are more than half of Fintech startups with 53%, followed by Monterrey and Guadalajara, with 15% and 11% respectively, according to data from a survey published in 2018.

According to the document, about 8 million active users are registered in Fintech. In Mexico, they trade around 39 billion pesos monthly.

The expert points out that the current use of technology is key to growth: “We must rely on available technologies. The Fintech have driven Mexico and have led it to become a leading country in financial innovation,” he emphasized.

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