Mexico is the Favorite Destination for Chilean Startups to Internationalize
A notable 34% of Chilean startups choose Mexico as their primary destination for expansion and growth, particularly in the sectors of open finance, payments, and remittances. This trend is highlighted in the fourth edition of the Fintech Radar Chile report, developed by Finnovista, Mastercard, and Galileo Financial.
The report emphasizes that the size and potential of the Mexican market are key factors attracting Chilean startups. In fact, 69% of these companies are founded with the vision of expanding internationally, with Mexico being one of the most appealing destinations.
Top Destinations for Chilean Startups
In addition to Mexico, other favored destinations for Chilean startups include Peru, with 35.4%, and Argentina, with 17.4%. The sectors most inclined to internationalize are open finance, cryptocurrencies, payments, and remittances. In contrast, the segments of enterprise financial management, personal financial management, and digital banking have internationalization rates below 50%.
Growth of the Startup Ecosystem in Chile
Currently, there are 348 fintechs in Chile, representing a 16% increase over the past year. However, this growth is lower compared to the 34% in 2022 and 25% in 2023. Between 2023 and 2024, 48 new companies were added, indicating a phase of consolidation and maturity in the ecosystem.
Andrés Fontao, co-founder of Finnovista and CEO of FINNOSUMMIT, states, “The fintech sector in Chile is entering a phase of maturity, characterized by fewer new players but with greater market presence and size. This 21% of new fintechs born in the last year underscores Chile's crucial role in financial innovation and inclusion in the region.”
Challenges and Collaboration in the Chilean Fintech Ecosystem
A significant challenge for the Chilean fintech ecosystem is female representation. Although the numbers are better than those in other regional countries, with 31.5% of women working in fintechs and 20.7% in executive positions, 60% of the fintechs in Chile were founded exclusively by men.
Despite these challenges, the Chilean ecosystem demonstrates a remarkable capacity for adaptation and collaboration. 67% of Chilean startups collaborate with traditional financial institutions, and 65% work together with other fintechs, fostering a collaborative environment that drives the sector's growth.