In 2022, the Inter-American Development Bank (IDB) and Finnovista, both benchmarks in driving financial innovation in the region, published -as has been the custom since 2017 on a biannual basis- a comprehensive study on the state of the Fintech ecosystem in this area: ‘Fintech in Latin America and the Caribbean: a consolidated ecosystem for recovery‘. This report offered a deep and exciting insight into the region’s Fintech landscape, its challenges and opportunities that now, in the last quarter of 2023, we can analyze with perspective.
A booming ecosystem
Already in 2022 it was confirmed that Latin America and the Caribbean had emerged as a true breeding ground for Fintech startups. In that year, more than 1,500 Fintech companies were registered in the region, marking an impressive 47% growth compared to the previous year. This spectacular increase showed that financial technology was not just a passing fad, but a transformative and consolidated force in the region. This is still the case almost two years later.
Friendly regulation and institutional collaboration
Collaboration between traditional financial institutions and Fintech companies has been a critical factor in the industry’s success in recent years. Regulators in several Latin American countries are taking a progressive approach to fostering Fintech innovation and ensuring consumer protection. This regulatory mindset has enabled the creation of a friendlier environment for startups and paved the way for the adoption of advanced financial technologies across the region. But what does 2024 hold for us in this regard?
The new report from Finnovista and the IDB will be released during the second quarter of 2024 and is shaping up to be a flagship ecosystem report for the ecosystem. Like the 2022 report, this comprehensive analysis will provide useful, relevant and robust information on the Fintech ecosystem across the region and will cover topics such as financial inclusion, the SDGs and the current and future challenges facing Fintech in Latin America and the Caribbean. It will undoubtedly be a unique opportunity to discover the most current state of the Fintech ecosystem, the growth since the last report published in 2022 to the present day, and how the region is poised to continue embracing and empowering financial innovation.
LAC Fintech startups have the opportunity to be an active part of these analyses by contributing anonymously to the survey. The survey will be open until December 1st, and all responses, in addition to the research and analysis with Finnovista’s own methodologies, and the participation of Fintech companies, associations, regulators and investors in all latitudes of the subcontinent, will make this flagship report the most in-depth in the region. Don’t wait any longer and contribute to the ecosystem!