Financial technology (fintech) companies in the country have had the highest relative growth in Latin America, and the Dominican Republic could become the fintech “hub” in Central America and the Caribbean.
So said Samuel Ramírez and Catherine Espaillat, president-elect and executive director of the Dominican Association of Fintech Companies (Adofintech) at the HOY Economic Meeting.
Of the 700 fintechs in Latin America, more than 100 operate in the Dominican Republic, Ramirez said.
The executive vice president said that the covid-19 pandemic served to catapult the growth of fintechs in the country, due to time limitations and circulation restrictions.
He said that fintechs not only support financial companies, but also help large, medium and small companies protect their means of payment and have access to more customers.
The president of Adofintech said that due to the pandemic some companies in the country with physical installations were forced to migrate to digital to offer their products.
They highlighted that to optimize their financial services, fintech companies use advanced digital technologies, which translates into greater market share, but that is not limited only to the financial industry per se.
They explained that the new solution improves and offers new opportunities in which small, medium and large companies from different industries apply and manage their own finances.
They cited the report of the Inter-American Development Bank (IDB), published in April 2022, “Fintech in Latin America and the Caribbean: a consolidated ecosystem for recovery”, according to which the Dominican Republic had a year-on-year growth of fintechs of 129% between 2017-2021, as it went from two active fintech ventures to 55.
An important fact contained in the report is that by 2021, the Dominican Republic represented 29% of fintechs in Central America and the Caribbean (55/188).
They indicated that, as of October 2022, Adofintech had 62 fintech companies, whereas they had only 19 when incorporated in May 2018.
They stated that, although it is true that the Caribbean and Central America have all the potential to become a global Technology and Fintech Hub, the region is made up of small markets, which represents a challenge when it comes to attracting investment, both in the form of foreign direct investment and capital.
Ramírez said that fintechs do not have a regulatory framework, except those dedicated to payment and credit, so he demanded to have clear rules to play by.
They pointed out that Adofintech’s alliance with Centramérica fintech associations allows the country to have access to a market of fifty million people.
Source:
Hoy
