After the fall of banks that play a fundamental role in the ecosystem of technology firms and the current economic context, the global fintech ecosystem is still not out of the woods, despite the fact that financing in the first quarter of 2023 increased 55% compared to the previous quarter, according to data collected by the consultancy CB Insights.
The consultancy detailed that in Latin America financing suffered a greater drop, of 54% with only 600 million dollars that were raised in the first quarter of 2023.
However, Brian Siu, general director of Jeeves for Latin America, indicated that in the current context, startups and fintech must create alliances to overcome the challenges posed by changes in banking infrastructure and the scarcity of credit.
Financing in the United States proved to be more stable than in Latin America during the first three months of 2023, since funding to the sector of 32.5 billion dollars was registered, which only fell one percentage point compared to the previous quarter.
CB Insights explained that without the round of 6,500 million to the financial technology Stripe, financing in the United States would have experienced a 21% decrease, for which the consultancy indicated that the region was not immune to the slowdown.
The fintech opportunity
Given this scenario, Siu stressed that technology companies have chosen to be more careful with their finances, in addition to the fact that after the fall of banks such as Silicon Valley Bank, various firms have been forced to diversify their funds.
“With the fall of these important banks in the sector, technology companies have had to adjust and think about where they have placed their funds. As a consequence, a more responsible analysis has been seen to be better managers of the capital they have, in addition to seeking to provide security to their investors, ”he said.
On the other hand, Siu highlighted that although the outlook seems daunting, it leaves room for fintech companies seeking to finance startups and other players who in general can take advantage of the context to position themselves in the sector.
“The future will be opaque in the short term, later for those who continue to adapt there will be quite interesting opportunities. Regarding the market, we as fintech are adjusting to the new changing realities, in order to optimize every aspect and achieve profitability to move forward”, commented the Jeeves manager.
