FINTECH IS ONE of the sectors with the largest number of start-up companies, as shown in the recent report by the Finnovista Fintech Radar Mexico, produced by the Spanish company Finnovista.
It reveals the evolution of this ecosystem in the country, presenting both resilience and sustained growth that you have experienced.
With 773 active local ventures at the end of 2023, a notable increase of 18.9% is observed compared to the previous year, underlining the sector's ability to adapt to challenges and generate new proposals.
This increase not only demonstrates the robustness of the ecosystem in the face of changes, but also its ability to generate innovations and solutions at a constant pace, aligned with a compound growth of 18.4% in the last five years.
However, it is crucial to note the exit rate of 17.2%, which, although higher than in previous periods, is offset by the formation of 234 new initiatives.
In the current economic context, the report highlights the growth of Mexican GDP in 2023, exceeding the IMF's global estimates.
However, a slowdown is anticipated for 2024, influenced by various variables, including restrictive monetary policies.
The “Rate War” promoted by the Bank of Mexico, with interest rates of 11.25%, stands as a central issue, affecting the cost of funding and generating opportunities and challenges for fintech companies.
The report highlights the growth in fintech income levels, with 82% of startups projecting income of more than $500,000 in 2024.
This increase suggests a successful transition of products and services from initial phases to more advanced and profitable stages.
However, challenges persist, with access to financing being one of them, especially for the Lending sector.
Additionally, cybersecurity and fraud prevention emerge as critical areas, with only 62.1% of the ecosystem claiming to have robust systems to address cyber threats.
Collaboration between fintech and traditional players stands out as a key strategy, and access to financing is positioned as the main challenge for the Lending sector.
Despite the challenges, the fintech ecosystem in Mexico shows a clear trend towards consolidation and growth, with the adoption of technologies such as Open Finance, APIs, Artificial Intelligence and Machine Learning, driving the transformation of the sector.
QUERÉTARO, WHICH IS GOVERNED BY Mauricio Kuri, is becoming the pole of attraction for the installation of data centers. The most recent comes with the announcement by Amazon Web Services (AWS), headed by Rubén Mugártegui, about the creation of a Region in Mexico scheduled for early 2025 that will reinforce the country's digital transformation. The planned investment of more than $5 billion over the next 15 years reflects AWS's long-term commitment to Latin America. The AWS (Central) Region, made up of three Availability Zones, offers developers and enterprises advanced infrastructure to run applications, while allowing customers to securely store their data in Mexico, driving the nearshoring trend.
THE ENTRY OF products purchased on platforms such as Shein or Temu that reach their destination through parcel shipments, presents challenges that go beyond the mere commercial transaction. The National Chamber of the Textile Industry, chaired by Rafael Zaga Saba, highlights two fundamental concerns: non-compliance with regulations and tax evasion. The practice of declaring lower prices on international shipments raises significant problems, as it not only violates customs regulations by undervaluing products, but also constitutes tax evasion by avoiding taxes. The situation is particularly accentuated when it comes to merchandise from Asian countries, where some companies adjust prices to avoid additional tax charges in Mexico.
THE HEARING OF THE MEX-USA-2023-31A-01 Labor PANEL, linked to the complaint of the National Union of Mine Workers about Grupo México's San Martín Mine, highlights Mexico-United States tensions under the T-MEC. The discrepancies over the review of the complaint reveal a fundamental dilemma: Mexico argues facts prior to the treaty and our partner maintains current violations. The US government's “Rebuttal Filing” seeks to address information gaps. Focusing on the company's and unions' alleged lack of convincing arguments, the United States urges the panel to recognize a “continued denial of rights at the mine.”
THOSE WHO SHOWED concern about protectionist practices were those of the International Chamber of Commerce (ICC), chaired in Mexico by Claus Von Wobeser, who urged the government of Andrés Manuel López Obrador to support the strengthening of the World Trade Organization (WTO). ). During the Ministerial Meeting in Abu Dhabi, the organization expressed its concern about the gradual weakening of the WTO, due to unilateral trade interventions. The ICC highlights the importance of the WTO as an engine of growth and a safety net in an interconnected world.
THE REVELATION BY the director of the National Monte de Piedad, Javier de la Calle, that the salaries of the unionized workers of that private assistance institution are low, highlights a worrying disparity. While base salaries are aligned with the minimum wage, managers receive significant compensation. The proposed 5% salary increase seeks to reduce this inequity, challenging the perception that unionized workers represent a financial burden.
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