Let’s start by defining Fintech as the sum of ‘financial’ and ‘technology’. The etymological base counts the financial practices that have a great dependence on technology. As it is a term that is beginning to grow little by little, there are those who call it “technology companies that offer financial services outside the large traditional companies.” However, broadly it should be defined as “companies that provide financial services through technology”. And what services? This is where the creativity of the entrepreneur and his vision of what the market needs comes into play.

What opportunities are opened for Fintech in Latin America?

In Latin America, Fintechs that have arrived or emerged are tackling the problems with traditional payments and facilitating solutions that have the capacity to provide a faster and more efficient service.

According to an article by Marsh (2019), Fintech was the #1 sector for venture capital investments in Latin America in 2018, and it is estimated that it will exceed $150 billion in 2021. In fact, in recent years, hundreds of Fintech startups have been born in the region. Not only have these startups been wildly successful, but many of them have reached $1 billion in valuation. On the other hand, Statista reveals that as Latin America’s banking density continues to slow relative to other regions and technological alternatives are increasing, more than 141 million people in Brazil, more than 82 million people in Mexico and almost 30 Millions of people in Colombia started using Fintech services since 2019.

In turn, traditional local banks have shot up interest rates and commissions. Therefore, local Fintechs can create healthy competition.

A great latent opportunity today in the face of what has been experienced by the pandemic, the smallest banks have a duty to digitize themselves, which is how many of them are turning to Fintech for help and to be able to implement better digital offers. In addition, smaller institutions, such as financial companies that do not operate under a banking license, need to provide online services to meet the needs of an increasingly demanding user who needs to transact online.


The Latin American public prefers to pay in installments for any purchase, not just large ones. This means that they created a culture of paying in installments both for food purchases and for appliances or trips, therefore it is a challenge to develop digital strategies to mitigate demands and grow in the market.

According to the World Bank, still half of the Latin American population does not have access to any banking services. Considering this scenario, emerging companies and neobanks have great opportunities to serve this sector. According to Visual Capitalists, the business opportunity represented by the unbanked sector in Latin America is estimated at $34 billion.

The expansion of fintech in Latin America will depend a lot on the right conditions that will allow the growth of the ecosystem. However, it will be the combination of regulations and fast and smart startups that will promote rapid growth and facilitate their success.

The creation of strategies for the arrival of international Fintechs that can meet the needs of the latin public is vital for the achievement of commercial and marketing objectives. Pulse accompanies you on the path to success along with cutting-edge new services to exceed your expectations and prosper in the region.

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