Investment in the technological financial industry will move towards fewer but higher quality companies, said Antonia Rojas, partner at ALLVP.
During the presentation of the Finnosummit 2022, the participants highlighted the changes that are identified in the sector as a result of the Covid 19 pandemic and the world economic scenarios.
“I think there is going to be a decrease in the number of financed businesses, and this is because there is a movement, throughout the world, towards quality rather than quantity, investors in general are more demanding, this is good for the ecosystem,” commented Rojas.
In recent years, investment in fintech platforms has grown in global investment circles. According to a study published by Finnovista, in 2019 there were around 115 investment firms outside Latin America that are committed to the fintech sector in the region.
For its part, the financial services sector, with fintech in the lead, was the one that received the most venture capital funding, concentrating 39% of the amount invested in the region during 2021, according to data from the Private Capital Association of Latin America (LAVCA, for its acronym in English).
Technological financiers established in the region maintain their innovation and product development with priority towards the Latin American public; however, other recently created financial technology companies in the area will consolidate their operation during this year, according to Rojas.
For his part, Andrés Fontao, co-founder and managing partner of Finnovista, assured that the pandemic gave a boost to the adoption of digital financial services and at the same time changed consumption habits.
“People’s consumption habits changed forever, we got used to making transactions in a digital way, operations with our banks or with those companies that offer us financial services. The need to go to a branch, to pay with cash, has changed,” said Fontao.