Fintech, a combination of the terms "monetary" and "innovation," refers to organisations that use innovation to improve or automate monetary administrations and cycles. The phrase refers to a rapidly growing industry that benefits both purchasers and organisations in multiple ways. Fintech has seemingly limitless applications, ranging from flexible banking and protection to digital currency and venture applications.
Latin America Fintech Market Driving Factors and Challenges
Driving Factors-
The increasing emphasis of internet behemoths such as Google, Amazon, Facebook, and Apple on financial services in Latin America is boosting the Latin American FinTech business.
Big IT businesses continue to incorporate edge banking into their existing operations, avoiding complete banking. For example, Facebook, the social networking corporation, intended to launch a digital currency called Libra that would make payments cheaper and faster. However, Facebook has lost many of its investors and is under intense regulatory scrutiny as part of a federal privacy inquiry. In addition to Libra, Facebook is merging its payment offerings into a new brand called Facebook Pay. They will compete with similar payment applications such as Google Pay and Apple Pay in the United States, as well as Chinese payment apps such as Alipay and WeChat Pay. As a result, significant technology businesses focused on financial services are likely to boost the expansion of the LATAM FinTech sector.
Challenges- Latin America has consistently experienced economic and political issues. Rapid progress was limited by a wide hilly terrain and numerous catastrophic disasters. Neoliberal policies improved the economic climate in the region, resulting in an increase in international investment. The situation improved during the last 10 years with the arrival of mobile communications, which offered a fertile ground for the region's financial and technological development. The banking system in Latin America is extensively regulated, with high transaction fees and lengthy account opening procedures.
Impact of COVID-19 on Latin America Fintech Market
Coronavirus has had a significant influence on global financial systems, particularly the delivery of digital financial services and the operation of the FinTech market in general. The increasing number of digital transactions is expected to drive demand in this market in the coming years.
Latin America Fintech Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as, Nubank, Uala, Ebanx, RecargaPay, Clip, Bitso, Konfio, Wilobank, Addi, Vortx.
Latin America Fintech Market Segmentation:
By Technology: Based on the Technology, Latin America Fintech Market is segmented as; API, AI, Blockchain, Distributed Computing, Others.
By Service: Based on the Service, Latin American Fintech Market is segmented as; Payment, Fund Transfer, Personal Finance, Loans, Insurance, Wealth Management.
By Application: Based on the Application, Latin American Fintech Market is segmented as; Banking, Insurance, Securities, Others.
By Deployment Mode: Based on the Deployment Mode, Latin American Fintech Market is segmented as; Cloud, On-Premises.
By Region: This research also includes data for Brazil, Mexico, Chile, Colombia, Peru.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.