IMAP flagship publication Creating Value looks at disruptive digital transformation in the Finance sector and how in Mexico it could be the engine for the democratization of information.
In Mexico, it is expected that over the next 5 years, “disruptive technologies” that apply artificial intelligence, machine learning, data analytics and blockchain will revolutionize its financial services industry. IMAP Mexico sat down in a private interview with Juan Carlos Arroyo, a top executive currently leading the digital transformation efforts at Banco Azteca, one of Mexico’s largest banks to discuss whether Mexico is on the right track to a successful digital transformation.
According to Arroyo, Mexico’s digital transformation is developing at a fast pace and the country is hungry for new and improved technologies. But what does this mean in terms of opportunities for Mexico’s commercial banks and Fintech startups? Arroyo explains that large banks are realizing the value of collaborating with fintech startups, whereby they can operate more efficiently in some areas of the value chain and add value from a user experience point of view, whilst decreasing otherwise normally high structural costs.
Furthermore, unlike in the US and Europe, Fintechs in Latin America work hand in hand with banks and most of Mexico’s fintech ecosystem is centered upon the end consumer, targeting many different parts of the social pyramid. Seeing Mexico as a “must-have” market for fintech companies in Latin America, he expects M&A activity to continue its upward pace and an increasing appetite from PE funds for fintech investments due to the exponential growth perspective as a result of what is a relatively underdeveloped industry in Mexico.
Gilberto Escobedo, Partner at Serficor Partners, IMAP Mexico remarked “Mexico is the second largest fintech investment hub in Latin America and the number of fintech startups in the country grew 40% in 20181, reaching 330 in total. Over the last few years, we have seen fintech investments becoming ever more popular, in comparison to other industries.”
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