Fintech in Latin America - statistics & facts
Fintech had a challenging year in 2023, with global investment activity declining sharply. Latin America was no exception to this trend, experiencing a notable slowdown in fintech investments. In 2023, the value of venture capital investment targeted at fintech businesses was less than two billion U.S. dollars, down from over six billion U.S. dollars just two years earlier. Despite this, the number of fintech companies in the region continues to rise. Brazil stands out as the primary fintech hub in the region, driving much of the innovation and growth.
Brazil is home to the most fintech companies in Latin America, including the largest, Nubank, a digital banking giant. Mexico, Colombia, Argentina, and Chile are also important contributors to the sector, but countries like Peru, Ecuador, and the Dominican Republic are emerging as notable players in the fintech space.
The fintech industry in Latin America is showing resilience and adaptability, with continued growth in the number of fintech companies and increasing consumer adoption of digital banking and payment solutions. Despite challenges in global investment, the region remains dynamic, driven by innovative leaders like Nubank and widespread enthusiasm for mobile and online financial transactions.
Brazil is home to the most fintech companies in Latin America, including the largest, Nubank, a digital banking giant. Mexico, Colombia, Argentina, and Chile are also important contributors to the sector, but countries like Peru, Ecuador, and the Dominican Republic are emerging as notable players in the fintech space.
The rise of online banking
The penetration of online banking in Latin America is on the rise, with leading digital banks such as Nubank, PicPay, and Banco Inter serving millions of customers. These companies are at the forefront of the shift towards digital banking, offering services that attract a growing number of users seeking convenience and accessibility. The shift toward online banking is also evidenced by customer attitudes toward online and mobile finance. An increasing share of the Latin American population envisions handling their financial transactions exclusively via mobile phones, and a similarly high share of bank account holders feel the same way about online finance. Here, too, Brazil leads the way, with almost every second bank account holder saying they can imagine dealing with their financial transactions exclusively via their phones or online. This shift in customer preference underscores the ongoing transformation within the region's fintech industry, highlighting the potential for continued growth and innovation.Leading fintech companies
Nubank must be mentioned when discussing leading fintech companies in Latin America. In 2023, the Brazilian neobank boasted over 90 million customers and saw a significant increase in its net income, cementing its position as the most dominant player in the region. Other notable banking apps include BNA+ in Argentina, BBVA México, and Bancolombia, all of which have made substantial strides in the digital banking space. In the realm of digital payments, Visa stands unrivaled, while Pix has emerged as the most popular digital wallet for account-to-account (A2A) payments.The fintech industry in Latin America is showing resilience and adaptability, with continued growth in the number of fintech companies and increasing consumer adoption of digital banking and payment solutions. Despite challenges in global investment, the region remains dynamic, driven by innovative leaders like Nubank and widespread enthusiasm for mobile and online financial transactions.
