El Salvador is experiencing a surge in investments in technology services applied to finance as a result of government strategies, according to the Ministry of Economy.
Financial technology companies (Fintech) operating in El Salvador saw a significant increase of 45.4% between 2021 and February 2023, according to the latest report «Fintech for Central America and the Caribbean 2023,» developed by Misión Lunar in collaboration with MasterCard.
Minister of Economy María Luisa Hayem believes that the report’s findings demonstrate the country’s progress towards a digital economy and the growth of these types of companies, which utilize cutting-edge technology to offer financial and decentralized services.
Out of these Fintech companies established in the country, more than 58% are focused on payment processing, 15% on loans, 9% on financial software, and 15% on cryptocurrencies, as indicated by the report.
«This demonstrates that El Salvador is consolidating itself as an attractive market for this sector and that there are positive results from the strategies promoted by President Nayib Bukele’s government to attract this type of investment,» stated the official.
Hayem further added that the results reflect a significant growth in solutions to facilitate online transactions, e-commerce, and digital payments.
The regional report also highlights that El Salvador, along with countries such as Costa Rica, Guatemala, and the Dominican Republic, has spaces that facilitate communication between innovators and regulatory authorities, such as the Financial Innovation Office operating in El Salvador.
According to the Ministry of Economy (Minec), Fintech companies are important for the Salvadoran economy as they offer tools and solutions to improve financial services, facilitate digital transactions and payments, and promote financial inclusion for a wider population segment.
Additionally, it states that the growth of Fintech companies is further evidence of the success of strategic actions implemented by the government through Minec and other institutions to position El Salvador as a regional center for innovation and technology, attracting more investments in this sector.
«El Salvador demonstrates that it has a dynamic entrepreneurial ecosystem where solutions are generated to facilitate online transactions, e-commerce, and digital payments,» said María Luisa Hayem, Minister of Economy.
The increase in Fintech companies in El Salvador highlights the country’s commitment to digital transformation and its potential as a hub for technological innovation in the region. With a supportive government and a favorable business environment, El Salvador is attracting significant investments in the Fintech sector. As the Fintech landscape continues to evolve, it is expected to drive economic growth, enhance financial services, and contribute to financial inclusion for the Salvadoran population.