The Mexico operations of ID Finance, the emerging markets fintech company, has reached break-even point in just eight months since launching in the region. The announcement represents a key milestone for the business as it continues its rapid expansion across Latin America. It currently operates in Mexico and Brazil.
ID Finance’s LatAm operations is currently experiencing the strongest revenue growth. The data science, credit scoring and digital finance company anticipates 15 per cent of its loan portfolio to originate from the region by 2020.
With a population of 127 million people, 61 per cent of which is blacklisted from the traditional banking system, Mexico represents one of the largest opportunities for fintech in LatAm. Indeed Finnovista, a fintech startup accelerator, has predicted that fintechs could take up to 30 per cent of the Mexican banking market over the next decade.
Earlier this year Mexico enacted a fintech law, the first of its kind in LatAm, seeking to promote financial stability and prevent money laundering while also introducing a regulatory sandbox under which fintechs can operate. An increase in investment from foreign and local investors is expected as a result.
Together with a panel of key fintech players in Mexico, ID Finance is helping the Mexican Fintech Association establish a best practice framework to guide the sector forward.