By Carolina Mandl and Katanga Johnson

(Reuters] – Latin America’s financial startup scene is facing a temporary financial hardship as higher interest rates have reduced investors appetite for more risky assets. Chief financial officers spoke at the Reuters Next conference.

Panelists believe investors will demand more proof of financial viability before they invest in fintech companies within the region.

Mariano Carranza is chief financial officer of Clip, a Mexican payment fintech. He stated that there will be greater scrutiny on the projects. This includes the prospect of the actual business, the economics and profitability, as well as more information about Mariano Carranza.

According to CBInsights, Latino fintech startups raised $14.8 Billion in new capital in the first nine months this year. This is a 174% increase over last year.

Recent signs suggest that investors have become more cautious. Due to weak investor demand, Nubank, Latin America’s largest fintech firm, had to lower its estimated valuation for an initial public offer by 20 percent to approximately $40 billion.

“Despite high interest rates, the outlook for growth in these businesses is very positive. So, it is possible that some investors will be less selective. Helena Caldeira (chief financial officer, Inter), a Brazilian digital banking institution backed in part by SoftBank Group Corp, stated that some startups might have to produce more than others before being able to access large amounts of debt.

However, she is not convinced that it should be a trend for the long-term, because financial inclusion in this region is very low.

Caldeira stated that Inter, which was raised through a share offer and client deposits of 5.5 billion Reis ($971.94 Million), will allow it to navigate potentially more difficult periods for capital raising.

Clip was also able to raise $250 million from SoftBank Latin America Fund in July and Viking Global Investors LP.