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Researched in partnership with the Inter-American Development Bank (IDB), one of the report’s biggest takeaways is that the number of fintechs in Colombia grew 26 percent in a year. Specifically, 50 new fintechs hit the scene. Although it’s worth noting its growth rate was at 29 percent in the report’s previous edition.
Let’s break down the report’s findings, shall we?
Colombian fintechs by the numbers
- There are 200 fintech startups operating
- Within a year, 28 ceased to exist
- The majority of these fintechs (24 percent) are loaning startups for either consumers or businesses
- The number of startups that develop enterprise technologies for financial institutions (ETFI) grew by 80 percent
- Most of the startups are located in either Bogotá (67 percent) or Medellín (20 percent).
- 30 percent of these fintechs operate outside of Colombia
- 61 percent of fintechs raised financing from foreign investors
Finnovista offers some takeaways
Finnovista observed that ETFIs are the fintech segment with the highest traction given its growth rate. And it makes sense given that emerging fintechs create needs that are often tendered to by even more fintechs.
For example, a loaning startup may require the API products developed by a fellow fintech. So one decides to buy the APIs off the other. And theoretically, the ecosystem benefits as local fintechs collaborate amongst themselves. A virtuous cycle.
The report also concluded that the number of loaning startups for small and medium-sized enterprises (SMEs) grew significantly. And no doubt they’ll provide a lifeline for many small companies in coming months.
In Brazil and Mexico, the number of fintechs that tender loans specifically to SMEs have been steadily rising and raising funding. One can expect this trend to replicate in Colombia.
Related articles: Tech and startups from Colombia!