The Mexico tech industry is growing as technology offers solutions for the country’s common problems. Mexico’s fintech sector is one example.
LATAM has seen increased venture investment since 2020. Given the growing internet use in the region and the growing demand for technological solutions, there is considerable potential for startups and new companies to take advantage of a growing market.
One of the industries that most stood out in the region is the fintech market. One of the biggest players in the region is Nubank—LATAM’s biggest fintech. The company grew so quickly and was valued at $45 billion dollars in 2022.
Mexico’s Tech Industry Spawns Dozens of Fintech Startups
During covid, millions of residents in Latin America found themselves turning to ecommerce and online banking for the first time. Before that, the market was relatively untapped. Even in 2022, Forbes reported that 70% of people in Latin America were unbanked or underbanked.
Countries like Mexico have a notoriously fraught relationship with traditional banks, which is why so many people stayed away from traditional banks. All throughout LATAM, for example, historical rifts have existed between banks and the population. So, the industry was in a perfect position to be disrupted. The demand for innovative banking tools was there, it was only waiting for the perfect opportunity.
In the last few years, fintechs burst into the scene and grew exponentially. Almost overnight, fintech startups sprouted throughout Latin America, helping previously underserved communities have access to banking products and services without going through traditional banks. In 2021, fintech accounted for nearly 20% of total venture capital investment in the country.
Source: Statista
LATAM is fertile grown for fintech because:
- It’s increasing smartphone use and internet penetration
- A growing tech-savvy population that looks for technological solutions
- There are regulatory laws in place that have helped the rise of fintech
- It is a ripe market for innovative banking solutions
As early as 2018, the Mexican government passed the “Fintech Law,” meant to support the fintech industry by creating a legal framework for these companies to do business in the country.
Growing Internet Use Throughout LATAM
According to Statista, 74.98% of the Mexican population was accessing the internet in 2022. That number is forecasted to increase to 88.85% by 2027. So, as the population integrates the internet and technology into their daily activities, the need for easily accessible banking solutions will continue to grow. At the same time, the demand for tech professionals working with the most innovative technologies will continue to drive the Mexico tech industry into continued growth.
As various startups emerge in Mexico and LATAM, thousands of new students are pursuing careers in STEM and technology, creating a well-trained force that seeks to find solutions and innovative ways to improve daily life.
Every year, about 130,000 Mexican engineering graduates receive their degrees every year, which means the country is training plenty of new tech professionals, software developers, and engineers to work with and innovate within these industries and others.
