Mexico City.– Fintechs are transforming the country’s financial landscape by lowering barriers to entry for a large part of the population and offering 100 percent digital products, according to the Fintech Mexico 2024 Annual Report.
“In 2023, prominent fintechs or neobanks such as Mercado Pago, Nu and Stori have achieved a solid position in the market. These companies have gained relevance by offering innovative financial services adapted to the changing needs of users, thus transforming the financial landscape in the country,” highlighted the report prepared by NTT DATA.
The analysis, which looks at the digital transformation that the financial sector industry is undergoing, driven by fintechs, highlighted the activity that both platforms and traditional players are having in order to position themselves in a new reality of financial services dictated by digitalization. It indicated that with trends such as Open Finance and Digital Payments and, in turn, how digital transformation is going, the financial inclusion of historically underserved sectors of the population is being enabled.
“The launch of various digital banks in Mexico by traditional entities has been observed. Examples such as Bineo by Banorte, Openbank by Banco Santander and Hey Banco by Banregio, show the efforts of financial institutions to position themselves in the new reality of digital financial services,” the document highlighted.
The NTT DATA report highlighted that although the commitment to digitalization of financial services is not easy, in recent years society has adopted digital trends and services at an accelerated speed. “This rapid adoption highlights the importance of companies transforming digitally at an accelerated pace to maintain their relevance in an increasingly digitalized world,” it highlighted. A relevant finding of the report is that digital payments and Open Finance are the main catalysts for the evolution of the financial sector worldwide, as they drive an economic efficiency never seen before that, among other advantages, enables the financial inclusion of different marginalized sectors of the population.
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