At the time of paying with a credit card, or when making a purchase through an electronic commerce, between 10 and 15 companies intervene simultaneously to make a transaction. This, according to Gabriel Santos, executive president of Colombia Fintech, who adds that, at present, small businesses can access the digital economy thanks to technological platforms. From these new tools, Santos says that accessing services is more efficient and with less intermediation. Such is the case of remittances, which, through Fintech, could be received at a fraction of the usual cost.
According to Hilario Menéndez, co -founder of Paggo, 60% of the market is not banking and, in five years, this sector could be through a Fintech and not by a traditional bank. Menéndez ensures that the growth of Fintech has been exponential, compared to that of a conventional bank.
Menéndez mentions that when the Fintech industry is at an early stage in a country, it begins with two business lines: payments and credits. Remittances, according to Menéndez, are usually encompassed in the payment sector. When they reach greater development, he says, Fintech could migrate to more complex financial instruments, such as investment.
Rafael Noriega, vice president of the Fintech Association of Guatemala, indicates that, since 2024, growth was documented in the association, from 30 to 50 affiliated companies. In addition, more than 95 Fintech have been mapped that operate in the country and that can generate an impact. The way to measure market size – explains Noriega – is from the amount of economically active population. Currently, 37% of the population is banking.
The Fintech sector in Guatemala
Rafael Noriega emphasizes that, in Guatemala, 6 out of 10 Guatemalans has more accessible and connected financial products needs with the national banking financial ecosystem. Therefore, it considers that more companies can reach the majority of the population with new technological solutions. There is a lot of opportunity to improve both the coverage and the education of the population in financial services issues, in addition to accessibility, he says.
Also, Noriega indicates that, currently, the Fintech Association of Guatemala has four pillars that qualifies as “strong.” The first is the traditional financial sector, in which banking, cooperatives and microfinance are located. The second is made up of the strategic allies of digital infrastructure services; The third, the Fintech themselves, and the fourth, the regulatory entity. All of these – he says – are enabling for these models to arise.
Noriega mentions that the range of services in the country is quite wide: They are observed from digital credits to electronic wallets and digital insurance. Behind this, ”there is the infrastructure and Fintech service providers that make these models possible together.
Edwin Zácipa, founder of Latam Fintech Hub, explains that, in Latin America, most Fintech concentrate on developing service models aimed at shops, businesses, MSMEs and other industries. This means that there is a lower presence of Fintech focused on individuals and people. In the end, what they have in common – Zácipa provides – is that they seek to reach banking or overwhelmed populations.
According to Zácipa, the greatest contribution of this type of companies is to promote financial inclusion of both people and shops. This – he says – democratizes digital financial services and generates opportunities for the entire population. All this leads to the existence of businesses linked to the health and education areas that create Fintech models.
Germán López, digital bank manager of the Industrial Bank, argues that, currently, there are various opportunities that can be explored, such as cybersecurity and artificial intelligence. These elements – he affirms – can contribute to efficient operations and transform customer service towards a more personalized model.
Jobs related to the Fintech sector
According to Lindsay Lehr, leader of Payments and Commerce Market Intelligence, there is a critical lack of technical profiles, such as software developers, engineers, data scientists and even experts in artificial intelligence. Lehr states that, in Central America, there is not enough preparation to cover these profiles.
Gabriel Santos indicates that the professionals required by the Fintech must have knowledge about how to interact with the environment, structure Startups Technology base and design digital platforms. Besides, he says— There is a growing demand for people with knowledge in the fight against fraud. Lehr adds that, although many people interested in working in Fintech already have technological training, they lack experience in the financial field.
Hilario Menéndez ensures that the talent and human capital necessary for this industry do exist; However, the challenge is that they do not have the experience of an engineer who has worked in large recognized companies. “I do want to emphasize how difficult it is to obtain this kind of profile in Guatemala,” he emphasizes.
Gómez mentions that Those who work in the Fintech sector can receive between Q6 thousand and Q18 thousand, According to the profile and experience. However, it clarifies that to achieve these salaries, adequate training is indispensable. According to Zácipa, it is essential that the academy gets involved to generate knowledge about financial innovation. Zácipa adds that Fintech wages are quite attractive.
Gómez argues that initiatives must be promoted to strengthen education focused on current digital needs, as well as adapt the pensum at diversified and university basic levels. In Guatemala, ”he calls – the qualified people are still few in relation to the demand. Therefore, personnel with knowledge in various functionalities and programming languages are required.
The professions that are demanded and the Fintech area:
- Developers and programmers: such as developers, programmers, computer engineers and systems, which are responsible for development from the digital point.
- Experts in intellectual property protection: This for the protection of the software that is carried out within the companies of this item.
- Data scientists and analytics: In order to read data that allow greater customization for users.
- Cybersecurity experts: For data protection of both companies and users.
- Experience designers: Responsible for building the value proposition and studying customers to understand what kind of product will be delivered.
What is needed?
Rafael Noriega points out that it is necessary for companies to generate alliances and collaboration structures that allow people interested in using this type of financial tools. “What Guatemala needs is to understand what are the processes and methods to collaborate and generate accessible business models,” he says.
In that same sense, Lehr points out that alliances must also be established between the Fintech and the traditional banking, so that the latter is technologically modernized and users perceive that the Fintech do not represent a risk.
Gabriel Santos states that one of the main challenges is regulation, since excessively restrictive regulations prevent models from moving forward and reaching a greater number of users. The regulation – Santos stands – must be modular, that is, allow companies to operate, relate to customers and, as they grow, are regulated and linked to formality.
Noriega adds that among the actors that develop the most in financial issues and that are in charge of the structuring and elaboration of regulations are the Superintendence of Banks, the Bank of Guatemala and the Monetary Board, as well as the Congress of the Republic and the Ministry of Finance. From the private sector – it indicates – there are key actors such as the Chamber of Industry, the Chamber of Commerce and the Finance Guild.
On the other hand, Zácipa states that the main challenge of Fintech in Latin America is scalability: “It is building a business model that is sustainable, profitable and replicable in different markets, segments and niches.”
Fintech benefits
Hilario Menéndez states that, currently, a growing need for the Guatemalan people is perceived to bank and have financial services more accessible than in the past. “The growth that Fintech is generally has shows us a larger image of the needs of the country to be able to receive agile, easy, accessible and digital financial services,” he says.
For its part, Gabriel Santos points out that Fintech are necessary to democratize access to financial services. This would allow that, through more efficient means, bank services be offered to people under conditions of vulnerability, as well as companies or individuals who do not have the necessary guarantees or reputation to access credits that allow them to grow.
To this, Lindsay Lehr adds that small and medium enterprises have a development space from the Fintech, since small businesses are not served by banks due to their size. Therefore, Fintech can enter a unattended segment, which can be offered access to accounts, financial services and payment processing.
For people interested in using Fintech services, the only thing required is to have technology. This is explained by Zácipa, who ensures that there are various tools – such as applications – that allow individuals and businesses to take advantage of digital financial services.
The arrival of artificial intelligence
With the incorporation of new tools into different areas, artificial intelligence also entered the Fintech sector. This – according to Gabriel Santos – is “transformer in all scenarios.”
These technologies, Santos continue, provide a productivity previously unattainable, what could be done to the most efficient companies and reduce costs for users of these financial services. In addition, he adds – projects focused on the fight against fraud are being developed.
On the other hand, artificial intelligence has been incorporated into database management. Lehr states that these tools are already being used for the management of large volumes of information. Likewise, he says, there is a greater customization in financial services, thanks to the analysis of this data, which generates a more immediate impact.
“Artificial intelligence is fundamental in the development of Fintech, because in this business model the intensive level of exponential technologies is high,” says Zácipa, who adds that AI is not a new element in the sector.
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