The Association for Private Capital Investment in Latin America (LAVCA) predicts that the number of Smartphone owners will increase to 76% by 2025. With an estimated population over 626 million people, these technological shifts are tremendously helpful to fintech start-ups to build digital products and services such as mobile payments, digital banks, eWallets and more. Latin American financial regulators are increasingly drawn to the open banking playbook to break up bank monopolies and increase financial inclusion. IDB has also supported progress by providing technical assistance in various countries to develop public policies and regulation. This ecosystem has led to a 50x growth in fintech funding in the past 6 years.
There is a growing market for tech companies focusing on providing services for small and medium enterprises (SMEs) and segments previously ignored by the traditional financial system.