DCV and EY Chile conduct the first Fintech survey of economic expectations

Most of the Fintech industry sees its situation as very positive in contrast with its economic vision of the country.

	This sector of the economy is quite positive about the evolution of its companies: 77.78% say their current situation is "good" or "very good", while 88.89 % believe that their sales will increase in the next 12 months.
	However, in terms of economic expectations, less positive results appear: 64% believe that the situation in the country will worsen in the next three months and 52.78% maintain the same with respect to the next 12 months.

January 23rd, 2020. In order to learn more about the economic vision of the Fintech industry, the Depósito Central de Valores (DCV) and EY Chile conducted the First Fintech Survey of Expectations in which relevant information on its characteristics was obtained, business expectations and their vision of the country's economy.

The first Fintech companies emerged between 2006 and 2009, but it was not until 2014 when the sector began to show explosive growth. Between that year and 2018, more than 60% of the companies currently in operation were founded, and are expected to continue increasing.

In general, it is known that the Fintech sector is becoming increasingly important and is contributing to the inclusion of segments of the population that often do not access the traditional systems of the financial sector. That is why the Depósito Central de Valores (DCV) and EY Chile decided to conduct the First Fintech Survey of Expectations.

The principal results were the following:

When asked about the current situation of their company, 77.78% consider it to be "good" (52.78%) or "very good" (25%), with sales growth in the last twelve months in 77.78% of cases. Regarding the evolution of sales, 75% believe that they will grow in the next three months and 88.89% have the same opinion in relation to the next 12 months.

Favorable expectations are also reflected in the intentions for hiring talent. For the next three and twelve months the following is shown: 69.44% plan to do so in the first case and 86.11% in the second.

The majority of respondents (86.11%) are also thinking about making investments during the year and 72.22% have plans to raise and/or obtain capital from investors or financial institutions, although 44.44% admit that they have had difficulties previously in obtaining it.

It is also very interesting that 88.89% of respondents are considering expanding their Fintech to other countries, and that 69.44% consider it necessary to regulate the industry to boost its growth.

"This survey shows how very interesting this new sector of the economy is, and the attractive business opportunities they see, especially considering that the survey was applied two months after the social outbreak," said Javier Jara, Commercial and New Businesses Manager of the Depósito Central de Valores.

Along these lines, regarding economic expectations, somewhat contradictory results appear in relation to the confidence they have in the proper functioning of their businesses, versus the behavior of the economy: 64% believe that the situation in the country will worsen in the next three months and 52.78% maintain the same with respect to the next 12 months.

On its characterization:

The Fintech companies that were surveyed are strongly concentrated in the Metropolitan region (86.11%) and in the "Banking, payments and transfers" and "Financial Management" sectors, with 22.22% for each, followed by "Crowdfunding & Lending" (16.67%).

50% of the firms surveyed have less than 10 employees, although 44.4% fluctuate between 11 and 50 employees. As for their sales, 33.33% have a turnover that ranges between UF 10,001 and UF 25,000 a year; 25%, between UF 25,001 and UF 50,000; and 19.44% over UF 50.001.

Regarding their seniority, 66.66% of the surveyed companies are four years old or less.

The survey was available to be answered between December 4th and 24th. In total, it was sent to 69 Fintech companies and a response rate of 52.17% was achieved.

Fintech expectations survey (Spanish Only)

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