Latin America has established itself as a leading region in terms of innovation in the financial services sector that has seen more than 1,100 FinTech ventures and around a 50% annual growth rate in the main markets, according to research conducted by Startupbootcamp in Latin America.

“A two-way path: Competition between financial institutions and FinTechs, a look at Latin America” is the latest research from Startupbootcamp in Latin America (encompassing the two FinTech programs: Startupbootcamp FinTech Mexico City and Startupbootcamp Scale FinTech Mexico City). The report has been published in collaboration with EY Mexico and CiiE (Centro de Estudios en Iniciativa Empresarial) of IPADE Business School.

The report details the elements required to build a growing FinTech ecosystem in the region and remarks on the key points for its evolution and vibrant development. It also explores the idea that a ‘blending of competition and cooperation (coopetition), between financial institutions and FinTechs’, is needed to build a healthy environment and enable the evolution of financial services in Latin America.

“The financial industry in Latin America needs to consolidate the bridges of coopetiton among its players, and also has to make the path that we have taken so far visible, to enable evolution. Through this report, Startupbootcamp confirms its role as an enabler between both worlds: the FinTech startups and the corporate partners supporting us”, says Eduardo Morelos, Program Director, Startupbootcamp FinTech Mexico City.

The report also focuses on the dominance of alternative financing platforms and digital payment solutions, which together represent more than half of the FinTech market in the region. The financial inclusion approach is notable too: 42% of FinTech startups seek to provide services as a main client to customers or SMEs, not banked or unbanked.

The research gathers views from some of the main players in the financial technology industry in Latin America, including banking institutions such as Visa, Banregio and HSBC Mexico, as well as innovation laboratories like Fiinlab powered by Gentera, and startups that have become benchmarks across the sector.