Fernando Landa and Mirko Olmos Innovation is the cornerstone for any country’s development and…
The Bolivian fintech “ecosystem”
Author: Mirko Olmos
- Introduction to fintech
During the first half of 2021, the global investment in fintech grew to USD. 98 billion., including deals in M&A, Venture Capital, and Private Equity. This meant that this industry faced a V-shaped recovery to the number of deals setback last year due to the global pandemic.
What are fintech companies?
Fintech companies come from the intersection between common financial firms (such as banks) and technology providers (i.e., software developers). What they do is use digital technology and analytics to provide financial services. They take profit from economies of scale and tend to target long-tail consumers.
The most usual classification for fintech businesses is: (1) lending, (2) payments, (3) Robo-advisors, (4) analytics, (5) profile, (6) advice, (7) re-balancing, (8) indexing, and (9) others. Others classify it in payments, insurtech, regtech, wealthtech, blockchain/cryptocurrency and cybersecurity.
There is no doubt that the other facet of innovation and disruption is regulation. Regulation has the power to lead and affect business models. Among the risks that regulators tend to identify are those to consumers and investors, financial services firms, and financial stability.
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 ‘Pulse of Fintech H1’21’, Regional Insights, n.d., 72.
 Paolo Sironi, FinTech Innovation: From Robo-Advisors to Goal Based Investing and Gamification, The Wiley Finance Series (Chichester, West Sussex, UK: Wiley, 2016).
 Sironi See Figure 1.1. of the Book.
 ‘Pulse of Fintech H1’21’.
 KPMG, ‘Regulation and Supervision of Fintech’, 2019, 16.