Digital wallets and the rise of investment Fintechs

We are leaders in the Fintech industry in Latin America. According to Colombia Fintech, our country ranks third in the region and fourteenth in the world. National companies such as nuvu, which develop technological financial services with the needs of individuals and companies in mind, have contributed to the growth of this ecosystem. 

The most widely used Fintech product in the country is the electronic money deposit, also known as digital wallet. However, there has been a growth in the development of platforms for ordinary people to access different investment vehicles. This has also been beneficial for SMEs, as some applications bring them closer to investors to innovate and continue growing. 

These statements are supported by data from Fintech Radar: the Colombian industry has 37 platforms for wealth management, both for individuals and companies. These have democratized investment, as many of them allow investing from low amounts of money and in vehicles such as mutual funds, where it is not necessary to be an expert.

Rise of investment fintechs highlights the importance of digital wallets

The creation of the Specialized Companies for Electronic Deposits and Payments (SEDPE), created through Law 1735 of 2014, aimed to increase financial inclusion and simplify the use of these products, through digitalization. The objective is now a reality. A survey conducted by the newspaper La República, concluded that, by the end of 2019, there were more than 8 million digital wallet users in the country. This figure has grown exponentially during the pandemic, as they are a solution to make transactions without leaving home. 

This tool has become a source of money for financial institutions. Getting citizens to trust these platforms and deposit their money in them is the necessary step to gain access to investment products. 

Several Fintech start-ups have relied on the E-Wallet, as it is a multipurpose mobile application adaptable, flexible to the objectives and rules of each business and product. Uxer, developed by nuvu, has been trusted by different ventures and organizations that have found in this E-Wallet a perfect alternative for their business models, where users can digitally perform the entire registration cycle through facial biometrics. 

Virtual wallets are giving impetus to Fintechs that aim to democratize investment, offering alternatives for citizens to make their savings profitable and for companies to find in them a financing option.