Miranda’s Mex Fintech Monitor

March 21, 2023

Mexico FinTech News 

Before diving into this week’s top FinTech news, we are delighted to announce that Scenius Mexico, the leading newsletter focused on Mexico’s startup ecosystem, has joined forces with Miranda Partners, to become Miranda Scenius. We encourage you to check out the latest edition and subscribe here: Miranda Scenius: Ep. 38: Zero Equity Funding Rounds. Luckily Venture Debt is Still Available. 

The ongoing turmoil in the world’s banking sector - including most recently Credit Suisse’s shot-gun merger with UBS, following the collapse of Silicon Valley Bank, - is likely to have multiple and contradictory impacts on regional FinTechs. 1) Further consolidation in global banking, mass layoffs and roduct pullbacks could open up potential profitable opportunities forFinTechs 2) Arguably the traditional banks are victims of technological disruption – depositors inCS and SVB exited at a click of a button, taking advantage of higher rates or lower risk elsewhere, leaving the banks with legacy lower earning assets and huge operating costs. It's a lot harder to earn a spread between assets and liabilities when technology allows your customers to find the best deals instantly. The question here is whether FinTechs will still be able to make money given their lower operating costs or if banking is just becoming less profitable as technology drives perfect competition 3) Depositors, payment users and regulatorsare going to be a lot more risk averse, making it even more difficult for thinly capitalized FinTechplayers without scale to gain customers and make money. 4) Fundraising is going to be a lot more difficult, a huge problem is your company is losing money or needs capital to grow.