The fintech ecosystem in Latin America and the Caribbean is growing rapidly and establishing itself as a key player in meeting the demands and needs of financial consumers in the region.
That’s according to the third edition of the report Fintech in Latin America and the Caribbean: a consolidated ecosystem for recovery, published by the Inter-American Development Bank (IDB), IDB Invest and Finnovista.
The report indicates that there were 2,482 Fintech platforms in the region in 2021, with a growth of 112% between 2018 and 2021.
Nearly a quarter of fintech companies worldwide, 22.6%, come from Latin America and the Caribbean.
The concentration of platforms has changed little from the previous publication and is led by Brazil (31% of the total), followed by Mexico (21%), Colombia (11%), Argentina (11%) and Chile (7% ).
Growth was driven by growing demand for financial services not covered by the traditional financial sector, an increase in demand for digital financial services due to the COVID-19 pandemic, and regulatory changes that affect transparency and security. for investors on these platforms, according to the study.
“The study shows that the fintech ecosystem is becoming a key element in driving greater financial inclusion,” said Juan Antonio Ketterer, head of Connectivity, Markets and Finance at the IDB.
“At the IDB, we are committed to supporting the development of this sector because we believe that fintechs offer great potential to extend credit for sectors such as micro, small and medium-sized enterprises and segments of the population that are often excluded, such as women . We hope this study will serve as input to foster an ecosystem in which fintechs continue to grow and empower themselves to support the sustainable development of Latin America and the Caribbean,” said Ketterer.
Behind the main markets are six countries that cover 14 percent of all fintech companies in the region, whose ecosystem is still emerging but with significant growth rates. Peru leads this group, followed by Ecuador and the Dominican Republic, in terms of the number of fintech startups currently active.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
