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Latin America Fintech Market - Segmentation By Technology (API, AI, Blockchain, Distributed Computing), By Service (Payment, Fund Transfer, Personal Finance, Loans, Insurance, Wealth Management), By Application (Banking, Insurance, Securities, & Others), By Deployment Mode (Cloud & On-Premises), and By Region – Forecast to 2027

Published: January, 2022
ID: 11196
Pages: 150

Latin America Fintech Market Size & Growth Analysis

In the last six years, fintech market in Latin America (LATAM) has grown from less than $50 million to $2.1 billion.

LATAM is home to some of the fastest growing countries in terms of internet and mobile device adoption. Internet penetration in Latin America now exceeds 66%, above the global average of 53%, according to the World Bank. Mobile phone penetration has also increased in Latin American countries and is expected to be between 63% and 75% by 2019.

LATAM regulators have borrowed from the European Open Banking Handbook to increase financial inclusion and break established banking monopolies. In Mexico and Brazil, the new regulations aim to lower barriers to entry for new tech players who wish to apply for and receive regulatory approval to grant loan licenses and bank status, among others. Central bank regulators have also taken advantage of the proliferation of mobile devices to switch from cash to new digital payment systems.

Recent Developments:

  • In January 2018, the Competition and Markets Authority (CMA) mandated Open Banking in the UK and governments around the world were asked to lead the charge towards transparency and API-based data sharing.

Market growth and trends

Enterprises operating in the financial technology market are increasingly implementing the blockchain technology for enhancing their security and overall efficiency. Blockchain is a technology that involves the implementation of a distributed database accessible to all users through a network, where each user can add a new data record (block), with a timestamp that cannot be changed. Blockchain technology maintains data authentication by limiting changes to older data blocks while allowing users to keep adding new data blocks, thus providing high security and transparency for companies operating in the market of fintech. Improves transaction accuracy, speeds up the settlement process and reduces risk. According to the FinTech report by PwC, by 2020, almost 77% of financial organizations should integrate this blockchain technology into their regular activities, along with 90% of payment companies.

The adoption of fintech services has grown at a rapid rate over the past 4 years among clients. Fintechs help SMEs meet their financial needs, such as banking and payments, financial management, finance and insurance. With a 25% adoption rate, this market offers many growth opportunities and opportunities for fintech companies. In addition to credit financing, there are many other ways that SMEs can benefit, such as the use of API (open banking) and distributed ledger technologies to achieve process efficiency, these are some examples where SMEs can benefit from the fintech ecosystem.

Market Drivers and Limitations:

Big tech companies including Google, Amazon, Facebook, and Apple are targeting financial services, which is positively impacting the growth of the Latin American FinTech market. Big tech companies continue to introduce edge banking into their current offerings, bypassing full banking. For example, Facebook, the social media company, wanted to introduce a digital currency that makes payments cheaper and faster, called Libra. However, Facebook has lost many of its backers and faced rigorous regulatory scrutiny in a federal privacy investigation. In addition to Libra, Facebook is also consolidating its payment products under a new brand called Facebook Pay. They will face competition from similar payment apps like Google Pay and Apple Pay in the US and Chinese payment apps like Alipay and WeChat Pay. Therefore, large technology companies focused on financial services are expected to have a positive impact on the growth of the LATAM FinTech market.

Growth over the historical period has been the result of emerging market growth, increased funding and investment in fintech start-ups, increased Internet penetration, and increased disposable income. The factors that negatively affected growth during the historical period were strict government regulations and lack of human contact.

Consumer data security concerns are holding back the growth of the local FinTech market. Fintech companies collect a great deal of data about their customers, including personal information and other financial documents. Many fintech companies also collect data on customer spending behavior online and social media models to track their digital footprint. This collected data is used for analysis in areas such as marketing, sales, and financial decision-making, such as generating credit scores to determine a customer's risk profile.

Market Segmentation Analysis

The Latin America Fintech market can be categorized on the basis of service, applications, technology, deployment and regional analysis.

LATAM Fintech Market – By Technology

  • API
  • AI
  • Blockchain
  • Distributed Computing
  • Others

Among them, Artificial Intelligence (AI) dominated the market in 2019 with a 38.25% share and the trend is expected to continue until 2026.

LATAM Fintech Market – By Service

  • Payment
  • Fund Transfer
  • Personal Finance
  • Loans
  • Insurance
  • Wealth Management

LATAM Fintech Market – By Application

  • Banking
  • Insurance
  • Securities
  • Others

LATAM Fintech Market – By Deployment Mode

  • Cloud
  • On-Premises

Regional Analysis:

Latin America (LATAM), with the nations like Brazil, Argentina, Mexico, Chile, etc., is slowly emerging as one of the most important regions in terms of fintech development, driven mainly by initiatives undertaken in banking and financial sector.

Key Market Players

Some of the major players in this market are Addi, Afluenta, Aliatu, Aspiria, Banco Inter, BBVA, ClearScore, CompareOnline, ContaAzul, Contabilizei, Credijusto, Cumplo, Finaktiva, Jooycar, Klar, Konfio, Kubo.financiero, Kueski, Lineru, Mercado Credito, Mercado Nubank, Moni Omie, OmniBnk, RapiCredit, Rebanking, RedCapital, Sempli, Starling, Ualá, Uber, and Wilobank.

COVID-19 Impact on Latin America Fintech Market

Coronavirus has had a major impact on financial systems around the world, including the provision of digital financial services and the functioning of the FinTech market in general. It is estimated to propel the demand in this market in the following years, with the rising digital transactions.

1. Introduction                                

                1.1 Market Definition                   

                1.2 Scope of the report               

                1.3 Study Assumptions                

                1.4 Base Currency, Base Year and Forecast Periods                         

2. Research Methodology                                           

                2.1 Analysis Design                        

                2.2 Research Phases                     

                                2.2.1 Secondary Research          

                                2.2.2 Primary Research

                                2.2.3 Data Modelling     

                                2.2.4 Expert Validation 

                2.3 Study Timeline                         

3. Report Overview                                       

                3.1 Executive Summary               

                3.2 Key Inferencees                      

4. Market Dynamics                                      

                4.1 Impact Analysis                        

                                4.1.1 Drivers     

                                4.1.2 Restaints 

                                4.1.3 Opportunities       

                4.2 Regulatory Environment                       

                4.3 Technology Timeline & Recent Trends                           

5. Competitor Benchmarking Analysis                                   

                5.1 Key Player Benchmarking                    

                                5.1.1 Market share analysis       

                                5.1.2 Products/Service 

                                5.1.3 Regional Presence              

                5.2 Mergers & Acquistion Landscape                     

                5.3 Joint Ventures & Collaborations                       

6. Market Segmentation                                             

                6.1 Fintech Market, By Technology                        

                                6.1.1 API            

                                6.1.2 Artificial Intelligence          

                                6.1.3 Blockchain              

                                6.1.4 Distributed Computing     

                                6.1.5 Market Size Estimations & Forecasts (2022 - 2027)  

                                6.1.6 Y-o-Y Growth Rate Analysis            

                                6.1.7 Market Attractiveness Index         

                6.2 Fintech Market, By Application                         

                                6.2.1 Banking   

                                6.2.2 Insurance

                                6.2.3 Securities

                                6.2.4 Market Size Estimations & Forecasts (2022 - 2027)  

                                6.2.5 Y-o-Y Growth Rate Analysis            

                                6.2.6 Market Attractiveness Index         

                6.3 Fintech Market, By Service                 

                                6.3.1 Payment 

                                6.3.2 Fund Transfer       

                                6.3.3 Personal Finance 

                                6.3.4 Loans        

                                6.3.5 Insurance

                                6.3.6 Wealth Management        

                                6.3.7 Market Size Estimations & Forecasts (2022 - 2027)  

                                6.3.8 Y-o-Y Growth Rate Analysis            

                                6.3.9 Market Attractiveness Index         

                6.4 Fintech Market, By Deployment Mode                          

                                6.4.1 Cloud        

                                6.4.2 On-Premises         

                                6.4.3 Market Size Estimations & Forecasts (2022 - 2027)  

                                6.4.4 Y-o-Y Growth Rate Analysis            

                                6.4.5 Market Attractiveness Index         

7. Regional Landscape                                        

                7.1 Regional Identity Governance and Administration Market, by ountry

                7.2 Latin America                            

                                7.2.1 By Country             

                                                7.2.1.1 Brazil

                                                7.2.1.2 Argentina

                                                7.2.1.3 Mexico

                                                7.2.1.4 Rest of Latin America

                                7.2.2 By Technology      

                                7.2.3 By Application        

                                7.2.4 By Service

                                7.2.5 By Deployment Mode       

8. Key Player Analysis                                   

                8.1 Addi

                                8.1.1 Business Description          

                                8.1.2 Products/Service 

                                8.1.3 Financials

                                8.1.4 SWOT Analysis      

                                8.1.5 Recent Developments      

                                8.1.6 Analyst Overview

                8.2 Credijusto

                8.3 Banco Inter                         

                8.4 ClearScore                           

                8.5 Konfio

                8.6 Kubo.financiero

                8.7 Wilobank

                8.8 Nubank

                8.9 Ualá, Uber

                8.10 Starling

9. Market Outlook & Investment Opportunities                               

Appendix                                           

                List of Tables                    

                List of Figures

  1. Latin America Fintech Market By By Service, From 2022 - 2027 ( USD Billion )
  2. Latin America Payments Market By Region, From 2022 - 2027 ( USD Billion )
  3. Latin America Personal Finance Market By Region, From 2022 - 2027 ( USD Billion )
  4. Latin America Loans Market By Region, From 2022 - 2027 ( USD Billion )
  5. Latin America Insurance Market By Region, From 2022 - 2027 ( USD Billion )
  6. Latin America Fund Transfer Market By Region, From 2022 - 2027 ( USD Billion )
  7. Latin America Wealth Management Market By Region, From 2022 - 2027 ( USD Billion )
  8. Latin America Fintech Market By Application, From 2022 - 2027 ( USD Billion )
  9. Latin America Banking Market By Region, From 2022 - 2027 ( USD Billion )
  10. Latin America Insurance Market By Region, From 2022 - 2027 ( USD Billion )
  11. Latin America Trading Market By Region, From 2022 - 2027 ( USD Billion )
  12. Latin America Taxation Market By Region, From 2022 - 2027 ( USD Billion )
  13. Brazil Fintech Market By By Service, From 2022 - 2027 ( USD Billion )
  14. Brazil Fintech Market By Application, From 2022 - 2027 ( USD Billion )
  15. Argentina Fintech Market By By Service, From 2022 - 2027 ( USD Billion )
  16. Argentina Fintech Market By Application, From 2022 - 2027 ( USD Billion )
  17. Mexico Fintech Market By By Service, From 2022 - 2027 ( USD Billion )
  18. Mexico Fintech Market By Application, From 2022 - 2027 ( USD Billion )
  19. Chile Fintech Market By By Service, From 2022 - 2027 ( USD Billion )
  20. Chile Fintech Market By Application, From 2022 - 2027 ( USD Billion )

 

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