New Fintech Companies Enter the Stage.By Sofía Hanna | Thu, 04/01/2021 - 09:14
For the second consecutive year, Mexico was left out of the foreign investment confidence ranking powered by A.T. Kearney consulting firm. Ricardo Haneine, Director General of A.T. Kearney Mexico, said the country has continued to make unattractive investments and bad decisions, such as the cancellation of NAIM, the construction of the Dos Bocas refinery, the Santa Lucia airport, and the Mayan Train These decisions have made Mexico less attractive for investors.
According to the firm, lower confidence levels in emerging markets are associated with risk policies. Mexico, for example, has driven its economy through state-owned companies, thus leaving aside much of the private sector. In addition, banks such as J.P. Morgan and Bank of Montreal recently left the country. This behavior has also spread to other sectors of the country´s economy.
The article mentions there are other ways to regain investors’ confidence, such as building infrastructure that will allow Mexico to take full advantage of the enormous potential the USMCA represents, but for now, foreign investors continue to lose confidence in Mexico.
Interested in more? Here are the week’s major headlines in Finance!
- Kredi, a fintech company that offers a marketplace where Mexican citizens looking to buy a home can find the financing scheme to fit their needs, was recently launched. The fintech startup, which plans to start investing in Mexico with about US$25 million in mortgages, is part of the growing trend to digitize financial and real estate services that are emerging to address housing challenges. According to Kredi’s website, the entire process is online and gives customers over ten options to help them make an informed decision when purchasing a mortgage loan.
- Mexico’s Ministry of Finance and Public Credit (SHCP) announced in the Official Federal Gazette (DOF) that two more companies were now authorized to operate under the terms of the Law to Regulate Financial Technology Institutions, also known as Fintech Law. The first one is Likideo MX, a Mexican crowdfunding platform based in the Miguel Hidalgo municipality in Mexico City. The second one is Inguz Digital, an Institution for electronic payment funds that aims to offer emission, administration, withholding and transmission of digital payment funds and seeks to operate fully within the Fintech Law, the applicable legislation from the National Baking and Stock Commission (CNBV) and the Mexican Central Bank.
- Nick Grassi, Co-CEO of Finerio Connect and an MBN Startup Contributor, shared information about the startup boom in Mexico driven by foreign entrepreneurs. He mentions that foreign capital has been leading the change. For the first three years, about 90 percent of Mexican startups are self-financed by entrepreneurs themselves and the best way to continue financing these projects is through foreign venture capital. Foreign VCs will have to continue to develop their expertise in the market over time, and as they invest they will be part of Mexico’s success.