The fintech industry, also known as digital financial services, continues to expand in Guatemala. There are currently 119 companies dedicated to these services operating, mainly in digital loans and payments, technology for financial institutions, financial management and crypto assets.
According to Enrique Galdámez, executive director of the Fintech Association of Guatemala, the fintech industry currently employs about 2,100 people and is estimated to generate 570 new jobs over the next 12 months, mainly in the areas of software development and sales.
However, to meet this demand, trained personnel in these areas are required. According to Galdámez, it is necessary to promote knowledge of the fintech concept among students and professionals so that they can identify companies in the sector.
“It represents an opportunity because they are business models that change the way Guatemalans interact with financial services,” he commented.
The information was announced in La Charla, a segment of Guatemala No Se Detiene, broadcast by Guatevisión every Monday at 10 p.m. On this occasion, in addition to Galdámez, Andrés Zelaya, product manager and technology expert, participated.
In Galdámez’s opinion, to meet the demand of the sector it is necessary to focus efforts on dialogue between the private sector, the public sector and academia, in order to generate channels and initiatives that facilitate the connection of students with fintech companies. “That the academic offer is adapted to what the sector is demanding,” he said.
Tailored education
To meet the demand for talent, Galdámez pointed out that academic training must adapt to the speed with which technology evolves. He explained that constant changes in programming tools and languages make it necessary to have shorter and specialized study programs, in addition to maintaining permanent communication between universities and industry.
“Technology, not only in the financial field but in all industries, changes rapidly. This implies that training times have to be shorter and more specific. The academic offer must have an agile response and remain in constant communication with the sectors that require that talent,” he stated.
He added that it is also necessary to strengthen linkage programs between students and companies, so that young people can join the sector from their training stage through professional internships.
“It is important to structure connection programs that allow, from the moment a person is studying, to join a fintech company, for example, through internship programs where the industry offers these opportunities,” he indicated.
In addition, he pointed out that companies must also promote internal training processes to develop the talent they require, especially in areas where there is greater demand.
“82% of external hires made by the industry correspond to positions related to software development. This gap can be closed by implementing internal training programs and working together with academia and the public sector to create specific, short training programs that can be quickly adapted to the needs of the market,” he commented.
For his part, Zelaya agreed that universities play an important role in bringing more young people closer to financial technologies and raising awareness of the job opportunities offered by the sector.
“The incentive of universities to communicate and prepare students on financial technology issues is very important. As companies grow and the need for specialized profiles increases, the interest of people seeking certifications or careers related to systems to join a fintech company also grows,” he explained.
He added that companies themselves must also participate in promoting the digital financial ecosystem to attract new professionals and respond to the demand for positions related to software development, commercial areas and technology.
From diagnosis to practice
Galdámez indicated that the first step to address the need for talent was to identify the main gaps in the sector through a diagnosis. He recalled that, in April of this year, the Fintech Association of Guatemala and Guatemala No Se Detiene prepared the Fintech Talent Radar, a study that made it possible to identify the needs for specialized personnel and measure the growth of the industry.
“The first step has already been taken, which was to identify the opportunity through a diagnosis. Now it is time to put that diagnosis into practice,” he stated.
As he explained, one of the next steps is to strengthen dialogue between universities, technical training centers, certifying entities, Intecap and other institutions that offer short-term specialized programs.
He also considered necessary the participation of the public sector through programs that facilitate the incorporation of young people into the labor market. “The public sector can generate acceleration programs and different linkage mechanisms that reduce the barriers to entry to the first job,” he indicated.
Among the alternatives he mentioned dual training, a model that allows students to combine academic preparation with work experience. “The opportunity to study and, at the same time, put that knowledge into practice allows us to strengthen technical training and develop local talent to respond to the growth that the sector is experiencing,” he noted.
A regulatory framework
Another challenge identified by the industry is moving towards a specific regulatory framework for fintech companies.
Galdámez explained that countries like Colombia and Argentina already have specialized regulations that have contributed to the development of the ecosystem and the creation of new companies. “There is an opportunity for Guatemala to look at what other Latin American countries have done and how they have structured enabling frameworks that have driven the growth of the industry,” he commented.
He indicated that Guatemala does not currently have specific regulations for the fintech sector, although there are regulations that allow the operation of these companies.
Among the recent advances, he mentioned the approval of the Anti-Money Laundering Law, which incorporates provisions related to the prevention of money laundering and the financing of terrorism, which also reach fintech companies. “A regulatory framework was established on compliance and prevention of money laundering that integrates new figures within the sector. However, regulations still need to be developed for the different business models,” he explained.
As part of this process, the Fintech Association of Guatemala is working on the development of codes of good practices for activities such as digital payments, digital credit and virtual assets. “We are carrying out a technical exercise to identify what has worked in other regulatory ecosystems and transfer those recommendations to the different actors,” he indicated.
He added that one of the main ways to promote these proposals is the National Financial Inclusion Strategy, a space in which different public institutions participate. “What we are looking for is to work together between the public sector and the private sector to enable the ecosystem and promote regulation that responds to the needs of the sector,” he mentioned.
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