For years, the fintech They have begun to gain ground within the current economic and financial market. And it is that compared to traditional banks or financial institutions with years of operation, these sites have obtained greater relevance for their products as well as for the population that many leave out: the population with few economic alternatives or in the informality.
However, these same elements or factors that have given relevance and presence to the fintech at present they could also signify your greatest danger according to Moody’san American risk rating agency.
According to the report of the international agency “How challengers are blocking the neglected credit market in Mexico”, the fintech they would have a great challenge in 2023 due to the informality of their target population as well as the current economic conditions.
The challenge of Fintech in 2023
The fintechin Mexico, have been characterized, since their inception, by “opening their arms” to the population that banks tend to reject because they do not have a reliable credit history or because of the level of informality in their income.
This has allowed it to reach 55.7% of the active economic population according to the National Institute of Statistics and Geography (INEGI). However, this same sector would become the risk factor for the fintech to face the economic obstacles of 2023.
“Financing, economic conditions and structural challenges will test the business models of new entrants. Challengers will face obstacles to building participation in Mexico’s underdeveloped consumer and SME markets, which also have inherently high credit costs,” the study conducted by Moody’s.
The future of Fintech in 2023
Despite the “healthy” competition and innovation that fintech can establish for traditional banks, the truth is that this same factor could end up ending the very hopes of the sector to reach more people or small companies.
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