For investors perpetually on the lookout for new opportunities and trends, Porfirio Sánhez Galindo makes a strong suggestion: Fintech. He reasons that Fintech, short for financial technology, has facilitated the merging of finance with technology as a digital concept. In fact, Fintech is at the leading edge of the digital era.
Prominent examples of Fintech in the common world are mobile banking and investment apps, with the addition of the unprecedented cryptocurrency boom and Bitcoin. Banking has also taken advantage of Fintech, quickly finding a place in risk management and insurance as a means to improve service effectiveness, efficiency and automatic processes.
— Porfirio Sanchez Galindo (@PSanchezGalindo) February 7, 2020
But for Porfirio Sánchez Galindo, the reason to invest in Fintech now is that it’s still at its start, not a resurgence from a previous industry remission. It’s an emergence and outgrowth of a universal and increasing reliance on technology and digital services, and that reliance is nearly guaranteed to follow an upward curve.
For Porfirio Sánchez Galindo, there is no better time for investment than now.
He also supports his assessment with the fact that Mexico has become a Latin American leader in technological integration. And with the introduction of the Fintech Law just more than two years ago, the Mexican government provided for the regulation of digital financial products.
Sánchez Galindo considers the law a bold step, indicating the government’s interest in adopting the multiple benefits of Fintech.
An example is the granting of an official license for operation by the government to NVIO Pagos México, a cryptocurrency business. The license allowed the company to operate as an official Fintech business, with the expectation that many licenses will be granted to other companies.
This represents a future increase for Sánchez Galindo and another reason for investing now.
The fact that the Mexican economy has seen a major jump since the Fintech Law’s approval is undeniably linked to the inherent investment and entrepreneurial opportunities it provides, illustrated by the increased emergence of businesses led by women. Where these companies would need to rely on traditional sources of funding until now, Fintech enables new and creative alternatives.
Companies like Cumplo, for example, act as intermediaries for potential investors and company matches, providing clarity and security at the same time.
Porfirio Sánchez Galindo encapsulates the foregoing with two terms: growth and emergency.
The exceptional rate of Fintech’s permeation in Latin America has also brought interest in the form of foreign investment. Now, with the advent of government support, the country’s capital investment growth has tripled just since 2017.
While Mexico and Latin America have not typically operated in the realm of technology until recently, Fintech and the smartphone have opened up general access, positioning products, services and investment in Mexico for growth in the coming years.
Porfirio Sánchez Galindo is a Mexico City native. He carried out studies at Stanford University and began a professional career as the Chief of Staff of the Mexican Ministry of Finance in 2000. He later took a position as a Televisa Marketing Director and Chief Economist. He also served on the Finance Board of the Finance Committee and as a director for Editorial Televisa and Social Media. Porfirio Sánchez Galindo now focuses on Fintech and emerging technology.
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