Latin America ranks second in the acquisition of financial apps

Digital banking and financial services dominate the market in Brazil with 67 % of total installations in 2020

Latin America is registered in the second place as the region with the highest investment in the “acquisition of users of finance applications worldwide”, according to the publication made by Fintech App Marketing Insights: Latam Edition 2021 of AppsFlyer.

The report highlights that between the first quarter of 2020 and the first quarter of 2021 there was an increase of 80 % in the installations of financial applications, which implies “that on average they each invested US $ 157,000 per quarter in the acquisition of users.”

Data from the World Bank indicate that in Latin America there are approximately 50 % of the population lacking a bank account, hence three of the 15 countries with the highest demand for mobile finance applications are in this region.

According to the data released in the AppsFlyer report, Brazil is the second country with the highest global demand for this type of financial instruments, while Mexico is in seventh place and Colombia is in 15th place.

Banking growth

Additionally, the document indicates that 40 million Latin American citizens opened a bank account between May and October 2020, registering a decrease of the unbanked population in Brazil of 73 %, 18 % in Argentina and 8 % in Colombia.

AppsFlyer’s regional director for Latin America, Hernán Burak, noted: “The Covid-19 pandemic radically transformed the way consumers interact with banking and fintech, as well as the way financial institutions operate. The sector has experienced rapid growth thanks to the acceleration in digitization during 2020, where mobile phones and apps reaffirmed their importance as a channel for making investments and payments, requesting loans and insurance, or doing simpler activities such as checking balances.”

On the other hand, it is observed how the developers of financial applications and specifically financial apps in the region made significant improvements in anti-fraud solutions, achieving a reduction of “65 % in global fraud rates between 2020 and 2021”. As well as the 35 % increase in the installation cost since the second quarter of 2020.

M. Rodríguez

Source: portafolio.com

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