From payments and digital wallets to investment platforms and challenger banks, these tech companies are reshaping the financial services industry in Latin America.
Latin America has become one of the fastest-growing fintech hubs in the world in recent years.
The continent’s antiquated banking system (serving mainly the affluent) and largely underbanked population have created the perfect breeding ground for fintech growth, speeding up both development and adoption of new technologies.
Capital infusion to fintechs in the region peaked in 2021 as companies raised a record $14B — marking a staggering 289% jump from the $3.6B raised the year prior. The digitization push from the onset of the Covid-19 pandemic also drove the fintech boom, leading to predictions that Latin America’s meteoric fintech growth would continue full speed in subsequent years.
But amid 2022’s ongoing market downturn, fintech funding in the region has taken a large hit. Fintech companies raised $3.3B across 259 deals in the first 9 months of the year, reverting to investment levels that were last seen before the pandemic. However, year-to-date (as of Q3’22) deal activity (259 deals) has already exceeded the total deal count of 2020 (194 deals), which shows that Latin American fintechs continue to remain on investors’ radar despite the slowdown.
Using CB Insights data, we identified 187+ startups operating in Latin America that are leveraging technology to offer financial products and services to individuals and businesses.