Yesterday we lived an exciting meeting in the Peruvian capital, where, together with Visa, the global payments giant, we unveiled the latest findings of the Finnovista Fintech Radar Peru 2023.
Andrés Fontao, co-founder and Managing Partner of Finnovista, opened the session alongside Carlos José Pardo, Senior Director of New Business and Fintech for Visa’s Andean Region. Fontao led the presentation of the Fintech Radar, providing expert insight that illuminated the report’s most salient findings; while Gilberto Chaparro, General Manager of Visa, shared a captivating keynote, highlighting the importance of innovation and steady growth in Peru’s vibrant Fintech ecosystem. Roberto Vargas, President of the Peruvian Fintech Association, gave a brief but impactful speech, underlining the crucial need for collaboration between ecosystem players to drive the unparalleled development of our sector.
But the experience of this community event did not stop there. We counted on the pitches of two consolidated Fintechs of the Peruvian ecosystem, such as Zest and Klimb, who were represented by their CEO José Francisco de la Colina, and Head of Operations Martín Ramírez, respectively. Both shared their insightful visions and perspectives during the fascinating pitch sessions.
These were followed by sessions on emerging Peruvian Fintechs in early stages -Angel Espinosa from Coini, and Gian Franco Rojas from Scory-, who also received valuable feedback from experts such as Andrés Fontao, Roberto Vargas from the Fintech Association of Peru and Adolfo Vinatea, from Kréalo.
Innovation continued to flow with presentations from emerging Fintechs. Angel Espinoza from Coini, Gian Franco Rojas Calisaya from Scory and Jair Loayza from Kambia took us on a journey through their innovative solutions. After their exciting pitches, they received valuable feedback from an expert jury composed of Andrés Fontao from Finnovista, Roberto Vargas from Asociación Fintech Perú and Adolfo Vinatea from Kréalo.
This event was not only a window into the latest trends in the Fintech world, but also a reminder of the power of collaboration and diversity at the heart of our vibrant ecosystem. Peru’s financial future is shaping up to be more exciting than ever!
Since the last update of the Radar in 2021, the Peruvian Fintech ecosystem has experienced a compound annual growth of 20.9%. This significant growth translates into an increase of 61 projects, reaching a total of 193 Fintechs in 2023. Although it represents a slowdown compared to the growth rate observed between 2017 and 2021, it demonstrates the persistence and evolution of Fintech entrepreneurship in the country.
The leadership of the Fintech landscape in 2023 is held by the “Lending” segment with a solid presence of 50 companies, closely followed by “Wealth Management” with 39 companies and “Payments and Remittances” with an outstanding representation of 32 solutions. These three prominent sectors not only mark the forefront of the ecosystem, but together account for an impressive 62.7% share, underlining their central impact on the dynamism and diversity of the financial landscape in the country.
One of the highlights is the adoption of advanced technologies, with almost 30% of local Fintechs incorporating Artificial Intelligence (AI) and Machine Learning in their processes. Although this adoption shows some lag compared to other countries, it suggests a growing openness towards solutions based on advanced technologies.
The report also highlights the persistence of Peruvian Fintech entrepreneurship, with 72% of the companies identified in the previous report still active. However, it notes that 28% exited the ecosystem with 26 of them (19.7%) having suspended operations or closing permanently, while the remaining 11 ceased to be classified as Fintech or were acquired by traditional companies.
In terms of funding, there is a significant local dependence, with 58.6% mentioning friends and family as a key source. However, there is a notable presence of angel investors (50%) and venture capital funds (39.6%). Internationalization (54.2%) and access to financing (25%) appear as key challenges for Peruvian Fintechs.
Andrés Fontao, Co-Founder and Managing Partner of Finnovista, highlights the evolution of Corporate Venture Capital (CVC) in Peru, with companies such as Credicorp, Falabella and Wayra joining this trend to promote innovation. Gilberto Chaparro, General Manager for Visa in Peru, highlights the annual growth of the ecosystem despite the conditions of the last year, evidencing the strength of local players.
Low competition among Fintechs and high market potential are unique characteristics of Peru, according to the report. Although 41.2% see low competition as a key advantage, it highlights that almost half of the population has not yet accessed financial services, highlighting opportunities to serve unbanked segments.
Despite the challenges, projections suggest that Peruvian Fintechs will close the year with revenues exceeding 2022. To address the challenge of scalability, the importance of adapting to the regulatory framework in internationalization destinations and the search for strategic business alliances is highlighted.
The Finnovista Fintech Radar Peru 2023 provides a comprehensive view of the changing dynamics of the Fintech ecosystem in the country. With revealing data and key insights, this report serves as a guide to understanding the emerging trends, challenges and opportunities that will drive financial innovation in Peru.
To access the full report and delve deeper into the Peruvian Fintech landscape,