Fintech: Driving Inclusive and Sustainable Development in Mexico

By Felipe A. Pérez Sosa, Member of the National Technical Committee for Financial and Stock Market Intermediation of the IMEF. f.perez@tec.mx

In recent years, the sector fintech has experienced exponential growth in Mexico. According to the Finnovista firm, the number of ventures fintech increased 23% in 2020 and investments in the sector 50%, to reach 1.3 billion dollars in that year. This has made Mexico a regional leader in the ecosystem fintech of Latin America and revolutionized the way we interact with the financial system in various segments, from payments and loans to insurance and wealth management.

However, the impact of the fintech It goes beyond the convenience of transacting online or through mobile devices. The development of the sector can play a fundamental role in achieving several of the Sustainable Development Goals (SDGs) proposed by the United Nations, which establish 17 global goals to address the most pressing social, economic and environmental challenges of our time with the aim of transforming our world towards a more inclusive, sustainable and prosperous future.

For example, according to the 2021 National Financial Inclusion Survey, approximately 32% of the adult population in Mexico does not have any type of formal financial product. In this regard, the Mexican Institute of Finance Executives (IMEF) has emphasized the importance of financial inclusion in Mexico as a key factor to promote the economic and social development of the country and has highlighted that financial inclusion can contribute to the reduction of poverty and inequality. In this sense, through digital platforms and innovative solutions, companies fintech have managed to reach underserved communities and offer affordable financial services such as mobile payments, online loans and microinsurance, thus contributing to SDG number 1: End of poverty.

Likewise, financial inclusion plays a relevant role in the Reduction of inequalities (SDG 10). Since, thanks to the solutions fintechtraditionally marginalized groups have the opportunity to access financial services and fully participate in the economy by promoting greater equity and creating opportunities for those who have long been excluded.

Although the impact of the fintech seems to be more noticeable in SDGs 1 and 10, it is also true that, due to their innovative nature, the fintech They can indirectly affect others, as in number 9, Industry, innovation and infrastructureand on the 12th, Responsible production and consumption.

It is pertinent to remember that technology is the driving force of the sector fintech, so its adoption has led to the emergence and exploitation of new innovative financial solutions such as artificial intelligence, machine learning and blockchain. With this, companies fintech They improve the efficiency of financial services, reducing costs, increasing transparency and promoting sustainable and efficient business practices. All for the benefit of its users.

Finally, the sector fintech can become an important enabler to mobilize resources towards sustainable projects and climate change mitigation actions through crowdfunding platforms and investment solutions, thereby contributing to the achievement of SDG 7: Affordable and non-polluting energy and SDG 13: Climate action.

The sector fintech In Mexico it represents an unprecedented opportunity to drive the achievement of the SDGs through its ability to provide access to financial services, foster inclusion, promote innovation and channel funds towards sustainable projects. However, it is true that the impact of fintech in Mexico has not yet been as expected. Some of the reasons that have limited its potential can be found in regulatory aspects, market barriers, gaps in digital skills, technological infrastructure, financial education, weak perception of its benefits by consumers, as well as lack of trust and security.

For these reasons, the actions undertaken by institutions such as the IMEF and the FAIR Center of the Tecnológico de Monterrey stand out, aimed at promoting dialogue and collaboration between the actors of the ecosystem. fintechpromote education and training on topics of interest to the sector, and carry out research, analysis and monitoring studies on the topics of greatest impact for the development of fintech.

In this way, by working in collaboration with actors from the private, academic and government sectors, the sector fintech can become a driving force for a more inclusive and sustainable financial sector, for the benefit of the populations that need it most in our country.