Latin America Raises its Appeal for FinTech Business in 2023

  • FinTech StartUps
  • 18.01.2023 03:40 am

The fintech services in Central and Latin America are already experiencing a real boom in terms of consumer demand for fintech solutions. The unique demographic situation gives a way to a large prospective audience of consumers that use fintech services. Latin America and the Caribbean collectively have 669 million population, a high level of urbanisation that contributes to maximum fintech penetration (82.5%), and an average age — 31 years, corresponding to the period of maximum consumer activity.

Internet penetration is rapidly increasing in Central America and the Caribbean region. Comparing the October 2022 figures to the results of 2021, internet penetration increase in the Caribbean was +7 p.p. (to 77%), and in Central America - +6 p.p. (to 72%). Other regions are showing a much slower pace of development: Central Asia - +4 p.p., Southern & Northern America and Western Asia - +3 p.p.

Latin America & Caribbean show the fastest growing pace in the number of made or received digital payments +20 p.p. growth in 2017-2021 (up to 66%), While East Asia & Pacific - +17 p.p., Europe & Central Asia - +9 p.p., Middle East & North Africa - +9 p.p. (up to 53%), and North America - only +2 p.p.

Commenting on the results, the analysts added: “The market supply for fintech solutions in this area is not yet fully capitalised. The interim data for 2022 shows the decline in the volume of VC Investment in FinTech: USD 4 Bn in the first half of 2022 compared to USD 9.3 Bn in total in 2021. For comparison, for the first half of 2022 Europe was capable of almost matching the results for the entire 2021 ($23.1 and $29.5 billion, respectively). The same can be said about Africa ($1.4 and $1.8 billion) or SEA ($6.2 and $6.5 billion). Considering the current market state of Central and Latin America, the year of  2023 promises to bring an explosive growth for the fintech industry in this macro region.”

The full report can be accessed by the link:
https://docs.google.com/document/d/1iInhLJAf0gSGyVhNNWzg3kAzfe1t63E4xGnFBDo17yA/edit?usp=sharing 

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