Saturday , December 5 2020

Uruguay was one of the most advanced countries in the fintech growth of the region.



Uruguay ranked ninth in 18 countries in Fintech's regional ranking. For example, the number of platforms has more than doubled, although the number of companies is less than that of Brazil.

The report, released this Wednesday at Inter-American Development Bank (IDB) and Finnovista "Fintech in Latin America 2018: growth and consolidation," identified 1,166 venture firms based in the financial platform based on the technology platform (fintech) 66% growth. Measure from two organizations a year ago

The report found that two of the three projects are already in the development phase, and last year the fintech activity increased from 15 to 18. According to the trend observed in 2017, Brazil has the largest number of 380 companies, with 273 in Mexico, 148 in Colombia, 116 in Argentina, and 84 in Chile. Uruguay ranked ninth with 28 platforms, but it grew by 133% in quantity and was at the sixth place with the highest expansion of fintech this year.

This document shows that countries have a very high growth rate (more than 100%), a high growth rate (more than 50%), medium (less than 50%) and negative performance compared to growth rates experienced on different platforms in the region compared to a year ago.

The 1,166 companies identified in this region are distributed among 11 fintech businesses. There are three of the most typical. Most importantly, it is one of 285 platforms and 24% of payments and remittances, followed by 208 and 18% of loans and 181 and 15% of corporate finance.

Required Regulations

In general, according to IDB, experience has shown that fintech activities require specific regulatory frameworks. It should include new mandates and powers for regulators, creation of new registered and licensed activities within regulators, and coordination between agencies, he said.

To create this report, 397 surveys were conducted in the region and awareness of the regulation of activity in Latin America and the Caribbean was raised. In Uruguay, 42% of respondents indicated that regulation was appropriate. 26% answered that they do not have any specific rules. Regulation is very loose 16%, excessive is 11%. I understand that the remaining 5% are not required and not necessary.

At the general level, 9% of respondents think that there is no need for specific regulations at present, while 35% think they are needed and 35% think that current regulation is appropriate. For the IDB, this reflects regulatory aspects of progress in certain jurisdictions.

conclusion

In the last chapter, the study stated that it is clear that the inevitable digitization of the financial sector has opened the door for entrepreneurs to accelerate innovation and change the way the population interacts with financial services so far. He noted that many people in the region are "focused on providing new services and innovative business models in all areas and responding appropriately to these different opportunities."

"While this young company is better adapted to current demographic changes and user behavior and meets the expectation that the traditional actors of the system have not yet resolved, this relationship is even worse," he said.

At the provincial level, early last year, Fintech's Uruguay Chamber was created and most of the platforms identified by the report came together. Among them are Paganza (which recently did not agree with Itaú Bank), Inversionate, Socius, Prezzta and TuTasa.


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