operations in Mexico during this year. The set of fintech wallets exceed 8 million users without counting bank digital wallets. Additionally, some initiatives adopted by the BCRA (Central Bank Argentine Republic) reached greater adoption in 2020, such as immediate fund transfers and immediate debit accompanied by other measures to move towards a 3.0 payments ecosystem in favor of interoperability. Regarding Mexico , the industry is made up of more than 500 fintech companies, of which 60 from the 85 companies that delivered their application before the National Commission of Banking and Values (from the Fintech Law), belong to electronic payment funds, indicating the high presence of companies within the segment. In addition, they have implemented the CODI which has facilitated the operability between payments and digital transfers. The rise of these digital products and services has positive effects on financial inclusion and consequently the region has witnessed the expansion of unicorns from different segments. On one side, Nubank from Brazil, has already entered Mexico and is planning its entry to Colombia. Additionally, Rappi has overgrown their services, being an ally of micro, small and medium sized companies in their commercial activity during the months of lock down. Finally, Mercado Libre leads ecommerce in the region, reaching 76 million active users in its different business units, which represents a growth of more than 92% year-on-year. It should be noted that over 17 million new users were registered during the third quarter of 2020. Its ecosystem is complemented by Mercado Pago, which comes through digital payments with 4.2 million transactions per day (Mercado Libre, 2020) and Mercado Crédito, which offers credits to businesses in Argentina, Brazil and Mexico, with plans to expand its credit to Colombia. The above scenario shows that in a region with greater adoption of services through digital means and an expanded FinTech offering, the use of alternative data sources to analyze behavior and trends, and mitigate risks in the financial sector, becomes more relevant. In this way, expanding the access and use of digital financial products in the population with the use of technologies that allow mitigating risks could play a relevant role in an inclusive economic reactivation in the region.
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