Exactly two years ago, the fall of Silicon Valley Bank (SVB) marked a turning point in risk capital investments. And attentive that the turning point is not just an expression: that of the aforementioned entity was the greatest bank bankruptcy since the financial crisis of 2008 and the second largest in the history of the United States.
The numbers complete the picture and explain the dimension of the shake that caused the collapse. SVB handled approximately US $ 209,000 million in assets and had around US $ 175,500 million in total deposits, with a large proportion of them without ensuring. The fast withdrawal of deposits -US $ 42,000 million in a single day -was key in its collapse.
Latin America was no stranger to what the fall meant, a fact that violated the foundations of risk capital investments throughout the planet and also marked the end of a period of growth at any cost. In other words, the era of stratospheric assessments and unbridled growth at the expense of profitability seems to have been left behind thereafter.
Lessons learned. Specifically, the event generated a strong aversion to the, let’s call him, foolishness in global financial markets, affecting various kinds of assets, including risk capital investments. The crisis became a call to action to remind investors the importance of sustainability and long -term profitability.
In the region, investors today are aligned, since they are now prioritizing companies with proven business models, positive cash flows and solid governance practices. In relation to the responsible investments mentioned a few lines behind, the responsibility does not only go through financial returns, but also because it also considers its social and environmental impact.
There is something that is strictly true: Fintech have the potential to promote financial inclusion and economic development in the region. Essentially, it is technology that has the power to promote access to financial services and generate a positive impact on the most vulnerable communities.
This power manifests itself especially in the region, where the financial sector has been showing some stability despite the challenges. Precise, the indicators indicate that the Fintech ecosystem in Latin America is still expanding, promoted by the growing demand for digital financial services.
Region & country. According to a study of the IDB, at the regional level, 57.32% of the Fintech are focused on serving non -banking or sub -banalized people and companies, reflecting the sector’s commitment to financial inclusion. In line with this data, it should be noted that the growth of the ecosystem in countries such as ours experienced a 333% increase in relation to the number of companies with this Core since 2017. And there are more figures. In Argentina, according to the third Fintech credit report, presented by the Argentine Chamber Fintech and the ITBA, the sector incorporated more than 700,000 people into the formal credit in the last year, reaching a total of 6.4 million holders in the country. In addition, Fintech grant one in five loans, consolidating themselves as key actors for the development of people and companies.
With this new paradigm, Latin American companies have the opportunity to consolidate ourselves as leaders in innovation and sustainability. To achieve this, it is key that we adopt a responsible and strategic approach, prioritizing profitability and long -term impact.
*Julián is sanctioned is CEO and co -founder of Alprestamo
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