In recent years, the credit market in Mexico has experienced notable growth, driven largely by the adoption of innovative technologies applied to the financial market. Fintech has played a crucial role in this development, providing access to financial services to a population historically excluded from the formal economy.

The growth of the credit market

According to recent data from Banco de México and the National Banking and Securities Commission (CNBV), consumer credit in Mexico has shown constant growth, with a compound annual growth rate of approximately 7% between 2019 and 2023. This growth has been driven by various factors, including greater financial inclusion and the adoption of automation technologies.

In 2020, digitalization or technological transformation accelerated in the financial sector. The need for social distancing and reduced mobility led to an increase in demand for digital financial services. Fintech companies, with their ability to adapt quickly and offer agile solutions, have positioned themselves as leaders in this changing environment.

The role of fintech in the credit market

Fintechs have revolutionized access to credit in Mexico in several ways:

1. Financial inclusion: Fintech has democratized access to credit, especially for those segments of the historically unbanked population. According to the Mexico Fintech Association, more than 60% of fintech companies in the country are focused on offering financial services to people with little or no credit history.
2. Efficient processes: thanks to automation technology, fintech companies can evaluate credit risk more efficiently and quickly. They generally use web and cloud decision engines, which through advanced algorithms and data analysis, allow them to evaluate the solvency of applicants, allowing more precise, faster and automated credit decisions. This has significantly reduced credit approval times, making companies' financial services more agile.
3. Product innovation: Fintech companies have introduced innovative products, such as peer-to-peer credit, microcredit, and flexible lines of credit, that better adapt to the specific needs of Mexican consumers. This has allowed more people and companies to access financing on more favorable conditions.
4. Technological transformation and accessibility: digitalization has been key to the expansion of the credit market. Fintech allows users to request and manage credit through digital platforms, which eliminates geographical barriers and reduces operating costs. This is especially relevant in a country like Mexico, where a large portion of the population lives in rural areas with limited access to traditional bank branches.

Our role in the Mexican financial market 

From uFlow, with our NoCode decision engine, 100% cloud, in Spanish and designed for the Latin American market, we seek to accompany that growth. Our focus is to provide an innovative and accessible technology service that helps fintech companies optimize their decision-making processes and offer financial services more efficiently and securely.

Impact on the market

The impact of fintech on the Mexican credit market is evident. According to a study by Finnovista, in 2023, credit fintechs in Mexico had granted more than $3 billion in loans, benefiting more than 5 million users. Additionally, the fintech market in Mexico is expected to continue growing at a double-digit rate in the coming years, consolidating its position as one of the leaders in the Latin American region.

A 2023 Mexico Fintech Association report indicates that the number of fintechs in the country has grown by 30% in the last year, with more than 500 fintech startups operating in various areas, including lending, payments and remittances, insurance, and management. of investments. This growth reflects greater confidence in fintech and its ability to offer innovative and accessible financial services.

The credit market in Mexico has seen impressive growth in recent years, with fintech playing a vital role in this transformation. By offering access to credit to underserved segments and introducing technological innovations as decision drivers, fintechs are helping to build a more inclusive and efficient financial future for all people. However, it will be essential to strengthen collaboration between fintech, regulators and traditional market players to create a robust and sustainable financial ecosystem.