There’s no question fintech in Latin America has stepped into the forefront of economic progress over the past few years. LATAM (or Latin America for short) is the home to the most fast-growing fintech community in the world today.
Let’s get into what just went down in the LATAM Fintech system and how they plan on growing in the market.
Recent Developments Boosted LATAM Fintechs
In the initial impact of the COVID-19 crisis, the fintech community was struggling and showing signs of bankruptcy because of the transaction services decreasing.
Which was a result of spending and steady income decreasing for society.
That’s not all the pandemic did to the fintech community.
According to reports, the pandemic has strong influence in the fintech community because it’ll level the playing fields more and correct some overvaluations that have been set in the past.
Now that the initial impact of the pandemic has been shaken off a bit, there’s been steady growth in Latin American fintech companies.
This growth is due largely in part to the huge surge in internet usage, e-commerce, and recent fintech investments.
The five major LATAM fintech markets of Argentina, Brazil, Chile, Colombia, and Mexico reported that there has been funding up to $8 billion. This is a tremendous jump if we compare it to LATAM’s funding of $45 million in 2014.
95% of those investments went towards fintechs in the categories of:
- Digital banks.
There’s been an increase in growth of transactions in Argentina, Mexico, and Brazil up to 33% compared to last year’s levels.
That’s considerable expansion, and it seems like the start for the Fintech scene in Latin America.
It’s also important to note that the majority of these companies have been in the business for less than 10 years, with a lot of room to engage in the market.
They will need to construct strategies that will help them evolve and stay competitive in the market.
LATAM Fintech Surviving and Growing
In this era of expansive tech, fintechs with out-of-date models and strategies will be struggling to stay flexible and competitive.
Why is that?
Not advancing operations will put companies at risk in these times of falling behind during a wave of new technologies changing the landscape.
It is essential for fintechs to come up with new digital strategies to grow in this modernist Latin American market.
A good place to start is by networking and having investments. Also, knowing the potential of the market can help you think big and be able to reach new ventures.
For example, millions of people in Latin America don’t have bank accounts because of bank fees and hefty background checks.
LATAM fintechs have the ability to reach to that community and provide them their service faster.
All in all, customers get financial services, fintechs get more business.
Sounds like a win-win!
The Opportunities in Latin American Fintech
There’s a great deal of opportunities for fintech companies in Latin America. You just need the right approach to help you reach them.
Looking at LATAM fintech and need the latest knowledge and trends on the market?
Colibri Content has multilingual experts in online marketing strategy to help you reach your business goals.
Contact our team today to confidently go into the fintech business!