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The growth of fintech in Latin America

RIO DE JANEIRO, BRAZIL – Financial technology, better known simply as FinTech, is sparking a revolution all over the world. More and more fintech companies are launching each year, offering financial services to more people than ever.

FinTech is used to describe any type of application or program that is used in banking or financial services. As the global economy grows and businesses and people become more connected, financial services are more important than ever.

FinTech provides solutions to the common problems facing consumers and businesses around the world, providing easier access to financial services. Many regions around the world have benefitted from increased growth of the fintech market, but few more so than Latin America.

In the Latin America region, roughly 55% of adults had access to a bank account in 2020, according to the World Bank.


The percentage of bankless people in Latin America represents a major opportunity for FinTech companies, and several financial startups in the region have recently made headlines.

These financial platforms have shown great potential with targeted audiences in Latin America. Brazil, Colombia, Argentina, and Mexico, in particular. Fintechs exploded in popularity thanks to digitally native infrastructures and highly tailored experiences. They are able to bring financial products to market faster and for less money than traditional institutions.

By using non-traditional methods, fintech companies can offer financial services at much better rates, while also improving usability and user-friendliness. Many of these startups begin life very small, but startup funding is growing.

In 2021, startup funding reached a total of US$20 billion, a 320% increase from the year before. According to AWISEE, a digital marketing agency, more fintech clients than ever are signing up from this region.


With a large percentage of the population in Latin America considered bankless, it’s become a major region for FinTech startups. Using banking services, making investments, or buying real estate has been notoriously difficult, but financial startups hope that they can make it more user-friendly.

By simplifying the lives of people living in Latin America, these services have massive potential to grow. In Brazil, five banks control over 80% of all financial products, and as a result, they’re able to charge excessive fees. This presents an excellent opportunity for FinTech startups, which can come in and disrupt the market, offering better services to consumers.

One of the biggest FinTech startups to emerge from Latin America is NuBank. This Brazilian startup is now the largest fintech bank in Latin America, with 48 million customers.

The service offers a variety of financial products, including current accounts, savings accounts, loans, and insurance. Its main selling point is its low fees relative to traditional banking services, and it’s also much easier to use. Offering an app, users can easily log in and see their balance, view transactions, and request a financial product.

By providing competition to traditional banks, NuBank has achieved a lot of success, becoming one of the region’s unicorns. That is a startup that is valued at over US$1 billion.

The company raised US$750 million pre-IPO and since going public has been valued at an incredible US$45 billion. Elsewhere in Brazil, RecargaPay and Vortx have found a lot of success, each receiving a high amount of funding.

In 2021, the Future of FinTech conference listed thirteen Latin American companies on its top 250 companies list. The previous year there were eight, showing signs that the market is growing across the region.

It’s expected that fintech will dominate the financial services market by 2030, with most adults around the world having access to some form of mobile or online banking. As internet usage increases in Latin America, it represents one of the fastest-growing markets and an excellent opportunity for new startups looking to expand into the fintech space.

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