117 foreign fintechs are operating in one or more countries in Latin America, representing 10% of companies in the ecosystem. Of the 117 foreign fintechs, 57 have invested US$ 677 M for their expansion into the region. Nine are unicorns backed by significant funding and experience compared to their regional counterparts
KoreFusion, the strategic consulting and M&A advisory services firm that specializes in the financial services, fintechs and payments sectors, released its Addendum to their inaugural2020 LATAM Fintech Report. The Addendum focuses on the presence of 117 foreign fintechs with deep pockets and more years of operations than nascent local competitors in the Latin America fintech ecosystem. The majority of these players originate from Europe and the United States.
“although the recent pandemic has created a difficult economic climate, the fintech ecosystem continues to grow and thrive”
“The entry of foreign fintechs in the Latin American fintech ecosystem is a positive indicator. Foreign fintechs are likely to raise the bar and create competitive pressure for regional incumbents and fintechs. They will also contribute to the advancement of the Latin American financial industry and further develop some fintech categories that still lag behind,” notes Jan Smith, KoreFusion co-founder.
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Regional fintechs continue to attract foreign investment which reflects the constant growth in the industry. International companies are interested in becoming players in Latin America, “although the recent pandemic has created a difficult economic climate, the fintech ecosystem continues to grow and thrive,” affirms Smith.
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Reported highlights:
- 117 foreign fintechs represent 10% of the Latin America regional ecosystem.
- 57 foreign fintechs have reported US$ 677 M in direct foreign investment for their expansion into the region.
- Startups in the Fintech-As-A-Service category – fintechs who offer regulated or non-regulated services to other entities under a white label open platform – will transform fintech, banking and retail in the region.
- Mexico is the number one destination in the region for foreign fintechs; Revolut, Openbank, Sivo and Binance see the country as critical to their Latin American expansion.
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