Fintech industry entrepreneurs have been able to interpret the new needs and demands of financial consumers. They have been the ones who have charted the path for the transformation of banking. Their success, driven by the COVID-19 pandemic, is demonstrated by the figures that portray this rapid growth.
The development of this industry represents an interesting business opportunity, as growth has not only been in the number of companies, but also in the amount of revenue they generate.
Colombia and Latin America, a promising scenario for fintech
According to the report “Fintech in Latin America and the Caribbean: a consolidated ecosystem for recovery” developed by the IDB, IDB Invest and Finnovista, between 2018 and 2021 this industry doubled its size in the region. The growth was 112%.
Additionally, 22.6% of the fintech companies in the world were born in Latin America and the Caribbean. Undoubtedly, this part of the world has emerged as an interesting scenario for digital ventures in the financial sector.
Colombia, one of the region’s leaders driving the fintech industry
Colombia Fintech assures that our country is the third in Latin America with the most companies of this type. In Colombia, between 2001 and 2021, the annual growth was 16%. Additionally, from 2019 to 2020, the increase in the number of companies was 26%. As of April 2022, 360 fintech companies were reported in the country.
Of this total, the majority of the market is represented by those dedicated to credit granting, followed by digital payments, and completing the podium are those dedicated to business finance. According to a study carried out by the guild, thanks to the new regulations, digital crowdfunding, insurtech, and neobank ventures have been expanding thanks to the new regulations.
The interesting profits of fintech in Colombia
As Colombia Fintech states, from 2017 to 2021 the real income of this ecosystem grew, on average, 27% annually. In the last year alone, profits were $3.7 trillion, so the fintech industry is increasingly contributing to the country’s GDP.
This development has translated into job creation, which is why we can say without fear of being wrong that fintech has become a key player in the country’s economic reactivation and an interesting business opportunity for entrepreneurs and investors.