The Mexican Institute of Finance Executives (IMEF) recommends that financial companies invest in digital transformation, fintech infrastructure, and digital compliance services to remain competitive, especially in emerging markets like Latin America, where fintech growth is 340% according to IDB & Finnovista in 2023. Regulation varies widely across regions in Latin America, making it vital to prioritize efficiency, accessibility, and regulatory compliance.
Over the last decade, digital financing has revolutionized the lending market by eliminating physical and bureaucratic barriers. Fintech platforms have streamlined the loan approval process, allowing disbursements in minutes compared to weeks in the past. This has redefined business models in the lending sector, significantly increasing its market size.
IMEF analysis indicates that the number of fintechs in Mexico has experienced double-digit growth between 2019 and 2023, rising from 394 to 650 respectively. Additionally, deposits in digital banks have grown from $0.8 trillion in 2017 to $15.32 trillion in 2024, representing an increase of 1815% according to Statista in 2024.
Personalized loans, operational efficiency through automation, and integrated finance in non-financial platforms have democratized access to credit, especially for SMEs and underserved populations. New business models such as financing for SMEs, crowdlending, cash advances, and DeFi have expanded financing opportunities.
The use of technology, such as artificial intelligence, has optimized risks for credit providers and broadened financing possibilities for individuals who were previously rejected due to lack of information. Fintech companies must maintain areas of continuous innovation to adapt to challenges and remain competitive in a constantly evolving market.
In this context, it is essential for regulators to develop clear frameworks and allow regulatory testing environments (sandbox) to mitigate risks, foster innovation, and support technological development in the fintech sector.
