Diving into Mexico's fintech success

Mexico has been — and still is — leading the fintech charge in Latin America. The country was the first in the region to implement a law specific to the sector, and Mexican fintechs account for nearly 20% of total venture investment in the industry throughout Latin America. Not to mention, the Mexican population harbors both the talent and demand for fintech services. Mexico repeatedly tops most innovative fintech hub lists, and neobank and digital wallet transactions are consistently increasing — during COVID lockdowns they rose by an estimated 80%.

Considering that nearly 40 million people in Mexico (almost a third of the population) are unbanked, fintech has been a necessary vehicle for fresh routes for credit, insurance and remittances. And because many Mexicans have little trust in banks, the transparency of fintech options has played a big part in people adopting the new technology.

Mexico’s fintech success is no coincidence – it’s due to a combination of factors that have made the country a fertile space to create and grow fintech solutions. This natural evolution has enabled people to gradually become familiar with fintech as a safe and streamlined solution.

For one, smartphone usage and internet penetration have both significantly improved in Mexico over recent years, shaping a tech savvy population that has become accustomed to managing money through devices. Paired with people’s aversion to traditional banks, this tech literacy makes fintech an attractive alternative. (TechCrunch)

Note: Finnovista includes a broader spectrum of fintech firms than those regulated by the Fintech Law Source: Finnovista

Ericsson captures Latin America market share

Swedish networking and telecommunications giant Ericsson grew organically and could increase its market share in Latin America in the third quarter of the year, overcoming a period of decline.

Currency adjusted growth in Latin America amounted to 20% year-over-year, according to Ericsson’s financial report.

The company discloses sales figures for the region grouped with Europe. Quarterly revenue in the two regions combined was 14.4bn Swedish krones (US$1.67bn), up 8%.

According to the company, both networks and digital services sales grew in the two regions as a result of market share gains, while sales decreased in managed services year-over-year “due to earlier decisions on contract exits and rescoping of contracts.”

Ericsson plans to double down on the corporate segment, in addition to its core telecom and radio access network segment, to reap gains on expected 5G private networks and related applications.

In Latin America in particular, Ericsson is focusing primarily on the agribusiness, logistics, railway, manufacturing and mining segments.

“[5G] is going to drive traffic into the networks and actually provide a much longer investment cycle in the networks, but it will also start to open up for new segments to be attacked with mobile communication,” CEO Börje Ekholm. (bnamericas)

Nubank files to go public

This morning Brazilian neobank Nu, better known as Nubank, announced that it has filed to go public. Today its F-1 filing remains private, but the announcement of its existence implies that Nu is on track to go public soon, perhaps inside of 2021.

The company filed with both the American Securities and Exchange Commission (SEC) and the Comissão de Valores Mobiliários (CVM) in Brazil, it said. Per the company’s bulletin, Nu intends to list in the United States with intent to “negotiate a program of Brazilian Depositary Receipts” in its home country.

In June, Nu raised a $750 million round led by Berkshire Hathaway at a $30 billion valuation, making it one of the most valuable unicorns in the world. Since its 2013 inception, Nu has raised $2.3 billion in capital, with investors such as Sequoia Capital, Tencent, Ribbit Capital, Kaszek, QED Investors and others.

Source: ACI Worldwide

At that time, Nu had 40 million users across Brazil, Mexico and Colombia. Its sheer number of users makes Nubank the largest digital bank in the world in terms of customers. Notably, it had 25 million users in June of 2020 and 6 million in 2018 — so its pace of growth and acquiring customers is quite remarkable.

Earlier this month, Business Insider reported that Nubank had turned its first-ever half-year profit in its home market. (TechCrunch)

Energy transition: Mapping Latin America's non hydro renewable energy

Investment in new fossil fuel production and unabated coal power needs to end this year if the global energy sector is to transition to net-zero emissions by 2050, a recent report by the International Energy Agency (IEA) argued. A net-zero energy sector is viable but requires an “unprecedented transformation” in the way energy is produced, the IEA said.

Momentum for this global energy transition received a major boost on September 21 when China, the last major public financier of overseas coal power, pledged to cut support. Addressing the UN General Assembly in New York, China’s president Xi Jinping also promised backing for developing countries in their pursuit of low-carbon development.

Dialogo Chino created an interactive map that plots all of Latin America’s networked wind, solar and geothermal energy projects, detailing their installed energy capacity, operational status and ownership. non-hydro renewable energy plants in 24 Latin American and Caribbean countries for which we were able to collect data.

Source: REN21 (2021), Renewables in cities 2021, Global Status Report

The data, which was compiled by cross-checking information from state sources, operating companies, industrial guilds and press releases, is intended to serve as a reference point for those hoping to understand Latin American countries’ progress in the clean energy transition. (Dialogo Chino)

First round of Chilean general elections

General elections in Chile are scheduled to be held on 21 November 2021, including presidential, parliamentary and regional elections.

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