International trade experts have highlighted the rapid growth of fintech startups across the Latin American region as a microcosm of the region’s potential as a whole. With the 66% rise in fintech organisations in Latin American since 2017, it is clear that not only are we as a region open for business, we are forward looking and totally willing to integrate technology into our economy and society.” In just this last year, the Inter-American Development Bank has identified 1,666 new fintech ventures across 18 countries, with Brazil leading the pack with 380 startups and Mexico having the fastest growth.
As the IADB has also highlighted, these startups are attracting a record amount of investment from venture capital funds, creating a strongly growing linked ecosystem that provides a solid base for any future potential entrepreneurs. This investment ensures there is a market for startups to grow into, and the depth of investment ensures that companies can grow and develop across country lines and complement each other in a Latin-America-wide fintech sector.
Alongside more conventional fintech areas such as lending and remittances, there is a growing trend towards internationalised digital banking among fintech startup. This is what budding entrepreneurs have immediately chosen to think in a connected manner and create new services, rather than simply try to expand existing options. This is at the heart of a growing belief in the potential of Latin American startups, as shown by what has gone before: there is an innate desire to innovate that shines a bright light on the future of Latin American business.