Fintech companies: the future of finance lies in digital tools

Fintech companies are those that go a step further in the financial system and are incorporate digital tools: mainly in electronic banking, cryptocurrencies and cybersecurity

The financial market has evolved tremendously by incorporating the use of technologies in the financial system. One of the most notable breakthroughs is the trend adopted by fintech or financial technology companies. Therefore, fintech companies are those focused on implementing digital technologies to optimize the activities of the financial industry.

According to the official website of the FinTech Mexico association, financial technology companies offer various types of financial services, which can be translated into services for users of the financial system. In addition, they are also involved in designing solutions for companies.

Furthermore, BBVA bank reported that in the first half of 2019 alone, global investment in fintech companies amounted to 37.9 billion dollars.

Mexico, Latin America and fintech companies

Experts claim that fintech companies are the future of finance. According to the Latam Fintech Report 2020, there are more than 1,000 fintech companies in Latin America. In Brazil there are some 498 companies specialized in financial technologies. In Mexico there are around 249, in Colombia 128, in Argentina 118 and in Chile 82.

An important highlight is that Mexico was the first country in Latin America to establish regulations for these companies, with its Financial Technology Law or Fintech Law. According to BBVA, it is an industry with a future that will forever change the financial paradigm.

Some of the most important services they offer are:

• Payment methods and transfers: payment platforms, e-commerce, among others.
• Mobile banking.
• Digital credit origination: these are companies that offer credit products through electronic platforms.
• Investments
• Financial solutions for companies: accounting and billing software, among others.
• Personal finance and financial advice: financial education and financial planning.
• Crowdfunding
• Cryptocurrencies and blockchain.

With information from BBVA, IEB School and Fintech Mexico.

Translated by Paula Villanueva