IDB estimates a growth of fintechs in Latin America of 340 % in six years

Recent data from the Inter-American Development Bank (IDB) and Finnovista place the growth of fintechs in Latin America and the Caribbean at 340 % in six years

The Inter-American Development Bank (IDB) recently presented a report estimating that the growth of fintechs in Latin America and the Caribbean, in six years, has been 340 %, with Mexico, Colombia and Brazil at the top of the segment.

“At the end of 2023, the region’s fintech platforms reached a record of 3,069 companies distributed in 26 countries. Compared to 2017, this growth represents an increase of more than 340% in the number of fintechs in the region,” indicates the IDB.

Brazil, Mexico and Colombia together host 57 % of the total fintechs in Latin America, mainly in the “payments and remittances (21 % of the total companies in the region), loans (19 %) and business finance management” segments. (13 %).”

The growth is the result of efforts in these countries to serve underbanked people and companies or those that are not yet banked, demonstrating a marked interest in financial inclusion in the region.

According to the report, by 2023, “Brazil and Mexico maintained their leadership position, hosting 722 (23.53 % of the total companies) and 618 (20.14 %) fintech ventures, respectively,” totaling almost 44 % of total fintech companies in Latin America and the Caribbean. They are followed by Colombia with 409 fintech companies (13.33 %), Argentina with 312 (10.17 %) and Chile with 305 (9.94 %), for a total between them of 33.44 %. So “the five countries concentrate 77.1 % of the total fintech companies in the region.”

Other countries stand out, with less fintech development, such as Peru (5.31 %), Ecuador (3.03 %), Dominican Republic (2.12 %), Uruguay (1.69 %), Costa Rica (1.56 %). and Guatemala (1.11 %), which represent 14.8 % of the total. They are followed by Panama, Bahamas, Paraguay, El Salvador, Bolivia, Jamaica, Honduras, Venezuela, Belize, Barbados, Nicaragua, Guyana, Haiti, Trinidad and Tobago and Suriname, which add 8.1 % to the sector.

The progress of the countries of the region in the fintech segment is based on their interest in responding to the needs of the unbanked, strengthening financial inclusion, promoting the diversification of financing sources, and advancing in regulation and innovation. , with firm steps in “regulatory sandboxes and technological supervision (Suptech), thus promoting the development of the fintech ecosystem and the adoption of digital financial services.”


Source: mobiletime

(Reference image source: Unsplash+, in collaboration with Getty Images)

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