Is Latin America Experiencing a Boom In FinTech Startup Field?
The growth of Latin American FinTech startups is mainly due to an increase in scalable and easily accessible technologies
FREMONT, CA: FinTech companies are using information technology, mobile applications, and big data to revolutionize how one perceives, creates, and provides financial services in current times, bringing new ideas and refreshing the sector's old formula.
Latin America has not been left behind in the drive to widen innovative financial solutions and has proven to be fertile terrain. Latin American FinTech entrepreneurship has amplified by 60 percent in recent years, attracting the interest of investors and multinational businesses: Mexico, Brazil, and Colombia are among the countries with the most FinTech firms. Chile, Argentina, and Ecuador are among the newest members. These stats are not static; they rose at an exponential rate since 2018, attracting the interest of international players (like Silicon Valley accelerators and investment funds).
Why? The FinTech organizations are imposing a new manner of improving financial services solutions, which has gained much attention. Their solution is thorough, contemporary, and comprehensive: they have a novel way of providing services, add value, eliminate intermediaries between the product and the user, and carry out existing sector activities more efficiently–all at a lower cost. Thus, more people have access to financial goods, and the offer is more transparent.
Thanks to the sector's innovators, Latin America's financial technology ecosystems are distinct from those in other parts of the world. They are extremely generous and service-oriented and have a thorough awareness of their own culture and geopolitics. Apart from all of these characteristics, the growth of Latin American FinTech startups is mainly due to an increase in scalable and easily accessible technologies (allowing founders to test their ideas more quickly and affordably), a boost in mobile technology consumers, a cross-border market, and healthy competition thus far.The climate in which FinTech companies are growing adds to these characteristics. Latin America is beginning to be a great answer to financial difficulties such as a lack of credit options for the common consumer and the informal economy. Furthermore, because people distrust banking institutions and municipal governments, there is still a firm reliance on cash.