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What Fintech Trends Will Mark 2024 in Latin America

Fintech companies have an important role to play in the development of the Latin American economy. In 2024, the sector is expected to continue growing at an accelerated pace, driven by several trends, such as the growth of digital payments, the development of open banking, the rise of cryptocurrencies, and the focus on SMEs. These are the trends that will shape the fintech sector in Latin America.



Latin America

The fintech industry in Latin America has experienced exponential growth in recent years. In 2022, the sector received an investment of more than US$1.6 billion, 120% more than the previous year, according to a study by the Inter-American Development Bank (IDB).

This development is due to a number of factors, such as the growing adoption of technology by consumers throughout the territory, the need for financial inclusion, as well as favorable regulation of the sector.

Read more about the fintech trends in Latin America and find the latest financial news of the day with the Born2Invest mobile app.

Four fintech trends that will define 2024

1. Growth of digital payments

Digital payments will continue to grow in popularity in Latin America. According to a study by the consulting firm McKinsey, the value of digital payments in the region will reach US$2.5 trillion by 2025. This trend is mainly due to these variables:

Increased smartphone penetration.

Improved telecommunications infrastructure, which is relevant it continues to improve.
Increasing adoption of contactless payment solutions

2. Development of open banking

Regarding banking, Mario Aranda, general manager of Ionix Colombia, stated that this sector is where some of its target customers are located, as the trend is gaining more and more strength in Latin America.

This initiative allows users to share their financial data with authorized third parties, such as Fintech companies, to access new financial products and services. “One of the relevant aspects among Fintechs is definitely collaboration, it is a new dimension that was not traditional in this financial world.”

Growth forecasts are very positive. According to Allied Market Research’s Open Banking Market by Financial Services and Distribution Channel report, the global open banking market is expected to reach $43.152 billion by 2026.

The alternative to bank credit has given companies access to close to $100 billion.

Three factors that will drive its development:

Increased adoption of digital banking.
Collaboration between Fintech companies and traditional banks.
Increased demand for inclusive financial services
Analysis points to new banks and the Fintech industry adopting this initiative, which will lead to the emergence of new innovative financial products and services.

3. Rise of cryptocurrencies

Cryptocurrencies are also gaining popularity in Latin America, as 46% of banked individuals in the region are willing to make payments with Bitcoin.

“Cryptoasset companies are gradually evolving into comprehensive financial technology providers that act as one-stop shops for investors, consumers, and other companies,” stated the report Cryptoasset ecosystem in Latin America and the Caribbean.

Money transfers and payment processing services are the activities most commonly carried out through cryptoasset payments. By 2024, it is estimated that the number of users will increase considerably, as well as the number of companies adopting them in their financial processes.

4. Attention to small and medium-sized companies

The integration of fintech business models can offer several benefits for small and medium-sized companies in Latin America, including:

Technological modernization: They can help companies modernize their financial processes and systems, which can improve their efficiency and competitiveness.

Increased access to financial services: They can offer solutions for electronic payments, personal and corporate financial management, transfers and remittances, among other services.

Process optimization: Fintechs can help optimize financial processes, which can improve efficiency and reduce costs.

Greater flexibility: Fintechs can offer more flexible and customized financial solutions than those offered by traditional banks, which can better adapt to the needs of companies.

In this context, Mario Aranda assured that his organization is a great ally for small and medium-sized companies in Colombia and Latin America, with different service models that could optimize financial ecosystems according to each of them.

“Ionix’s target customers are in: banking, insurance companies, retail organizations and in general entities with high transactionality and large volume of users, where the amount of transactions requires many aspects of security and they need access to data related to reconciliation or risk measurement in open banking issues”.

It is expected that by 2024 Fintechs will focus on serving the needs of SMEs and that these companies dedicated to financial solutions will launch new developments tailored to the needs of small and medium-sized enterprises, such as loans, insurance and financial management services.

Regulation, a pending issue

Fintech regulation in Latin America is in the process of evolution. In recent years, governments in the region have taken steps to create a regulatory framework that promotes financial innovation and protects consumers. Taking into account these factors:

Some countries, such as Brazil and Mexico, have enacted specific laws to regulate Fintech activities. Others, such as Colombia and Argentina, have taken a more pragmatic approach, incorporating Fintech activities into existing regulations. In addition, due to the sector’s boom, other nations are expected to join in regulating these companies.

Fintech companies have an important role to play in the development of the Latin American economy. In 2024, the sector is expected to continue growing at an accelerated pace, driven by a number of trends, such as the growth of digital payments, the development of open banking, the rise of cryptocurrencies, and the focus on SMEs.

These are the trends that will shape the fintech sector in Latin America. It is an opportune moment of technological evolution, in which Colombia is an excellent scenario for its development and particularly highlights the human capital of our country.

“Colombia has friendly, passionate people with a power of innovation that not only surprises, but also fills us with expectation in the evolution of our team in the country, and as a center of operation for some of the services of our company at the regional level,”Mario Aranda concluded.


(Featured image by Adeolu Eletu via Unsplash)

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First published in Las2ORILLAS. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Sharon Harris is a feminist and a part-time nomad. She reports about businesses primarily involved in tech, CBD, and crypto. She started her career as a product manager at a Silicon Valley startup but now enjoys a new life as a personal finance geek and writer. Her primary aim is to provide readers with a new perspective on the overlapping world of finance and technology.