WHY FINTECH

“Access to affordable financial services is critical for poverty reduction and economic growth.” -Ceyla Pazarbasioglu, 2020 

FinTech is a growing industry that is disrupting traditional financial services with technology-driven innovations, some of which have already transformed the way we make payments (Square), transfer money (Venmo), and invest (Robinhood). These innovations have not only digitalized financial transactions and simplified day-to-day processes but have also helped reduce transaction costs, making financial services more affordable and convenient.

This industry has shown massive growth in the past years: $121.6 billion dollars was the total investment value in  FinTech-related deals in 2021, a 153% year-over-year growth. Currently, there are over 28,000 FinTech companies around the globe, of which 40% are based in North America. As the momentum continues, the industry is expected to grow at a 20% CAGR for the next four years, creating an opportunity for entrepreneurs to launch their ventures.

But, Why New Mexico?

The answer is simple: why not New Mexico? The graphic below shows the total number of FinTech deals from 2000 to 2022; there have only been 10 deals in this state in more than 20 years.  Currently, there are a total of 10 FinTech companies based in New Mexico, of which seven are generating revenue and three are in the start-up stage. This represents a big opportunity for local talent to disrupt the industry in our region.

Fintech Deal Count (2000-2022)

Launching a FinTech company might not be as expensive as it is for start-ups in other industries, given that these businesses are software-oriented. The FinTech Lab at Arrowhead Center offers valuable early stage resources to help start-ups reduce capital requirements while the foundation of their ventures mature. 

 The Lab looks forward to being the central point of financial technology innovations in the Southwest. Merging your ideas with the Fintech Lab resources is the first step towards the enhancement of social mobility and financial inclusion in our community.