Will the Recession Crimp Colombia's Fintech Growth?
Business attorney Daniel Fajardo was interviewed by Financial Services Advisor, a publication of The Dialogue, about the outlook for Colombia's fintech industry. According to a 2019 report, Colombia had Latin America's highest financial technology adoption rate, and the country's fintech industry was growing at approximately 120 percent a year. However, as Mr. Fajardo explains, investors are exercising greater caution because of the uncertainty caused by the pandemic. Despite this uncertainty, Mr. Fajardo said he expects funding to return and growth to continue.
"While fintech investors believe that Colombia has high long-term potential, the uncertainty surrounding the pandemic has generated a great deal of investment caution. Colombia's fintech companies have continued to raise new rounds of venture capital, but the pace is far from the peak reached in 2019," he explained. "Furthermore, investors are focusing more on companies with low cost structures and that provide mass services. With the continued popularity of fintech solutions, however, it is expected that funding will return once the worst of the pandemic is over."
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