Fintech Spring: Latin America Leads a New Financial Era

Latin America is no longer simply riding the global fintech wave—it is setting the pace. By 2024, fintech companies are projected to grow 21%, compared to just 6% for traditional banks.

The region already holds 5% penetration in banking and insurance revenues, more than double Europe and Asia-Pacific. BCG and QED call it a “Fintech Spring,” and it is unfolding here.

A change of era, with data to prove it

In Argentina, fintech lending grew 68% year-over-year, surpassing 5 million users. One in four loans in the financial system now comes from a fintech. Interestingly, only 29% operate entirely online, showing that complementarity with banks remains.

The business model has also matured: instead of chasing growth at any cost, the focus is now on profitability. By 2024, seven out of ten public fintech companies were profitable.

Five trends shaping the next chapter in the Latin American fintech sector

1. Agentic AI: from assistant to protagonist
   The next revolution is not generative AI but agentic AI—systems that learn, decide, and act autonomously. From setting savings goals to moving funds in the background, this will transform financial management. Marketplaces like Alprestamo can now deliver private banking-level tools to millions.
2. On-chain finance and tokenization
   Tokenization of assets such as bonds, real estate, and stocks will enable instant settlement, lower costs, and access to markets once reserved for the elite. At the same time, stablecoins are becoming central to cross-border payments and remittances in Latin America.
3. Challenger banks: depth before expansion
   Globally, fintech deposits account for just 2% of the market, yet they are growing 30 percentage points faster than traditional banks. The focus is no longer expanding at any cost but deepening locally with high-engagement products that secure user loyalty.
4. Fintech credit: the frontier of opportunity
   Credit remains the great challenge and opportunity, with private credit funds facing a $280 billion white space in the region. In Argentina, fintech default rates hover around 4%, improving two points from the previous year. The average sector loan stands at $424,090, yet Alprestamo’s average bill hit $823,000 in Q3-2025—evidence of user trust and fintechs’ growing role.
5. B2B(2X) and infrastructure
   Growth will also come from automating B2B payments, modernizing infrastructure, and expanding corporate credit. In Argentina, the number of companies using fintech credit rose 36% in one year, while firms continue investing in digital solutions.

A bright but responsible future

This is not a passing cycle but the building of a new Latin American financial infrastructure. The challenge now is scaling responsibly, ensuring competitive, digital, and accessible finance across the region. Fintech Spring is not a season—it is the dawn of a new era.

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(Featured image by Juan Pablo Mascanfroni via Unsplash)

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First published in Mercado. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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