FintechValley is happy to introduce its first guest-writer article, with a relevant and trendy thematic: Fintech in Latin America. Our guest contributor is Ana Graça, a professional in the payments industry with more than 5 years experience in the region.
Fintech in LATAM – fulfillment and promises
In a region where only 61% of the population own a bank account, is Fintech non-existent? By taking a look at the latest Fintech companies in Brazil and Mexico, one can see that Fintech in Latin America is thriving. These companies are leading the way in making financial services easily accessible to the overall population, especially to those that are excluded from traditional banking systems.
Payment solution and e-wallets have been the pioneers and now comprehend the most mature companies in the Latin-American Fintech industry. Companies like pagseguro or mercado pago have developed their own e-wallets to respond to the challenge of buying online products with cash. Recently, in Brazil, Moip has become increasingly popular for offering an easy, customisable and seamless payment solution for small local entrepreneurs.
Banking services via mobile phone are recent and are becoming increasingly popular. Nubank or Banco Original in Brazil, and Bankaool in Mexico, have simplified the access to bank services and credit/debit card products. Users can easily register online or via mobile phone, with less paperwork and customer service on demand via phone or email.
Lending and crowdfunding are also growing within the Fintech panorama, with products like BankFacil and Kickante in Brazil. BankFacil is an online lending service to ease up the process of obtaining credit for private consumers. Kickante is a service similar to Kickstarter, allowing users to set-up their own or fund crowdfunding initiatives. In Mexico, quotanda is paving the way to create fair lending networks for educational programs.
Every successful Fintech company in the market seems to combine three main qualities:
Diversity, innovation and flexibility. Diversity due to the differences among and within countries. Innovation to tackle infrastructural challenges and constraints. Flexibility to tailor their products to customers.
Fintech in LATAM is rapidly growing and it is still far from reaching its full potential, with 2bn people still unbanked. In the next years we will witness a multiplication of Fintech solutions both in number and diversity. Hopefully technology and infrastructure will catch up with the demands of the Latin American consumers.
Here are my top pics of Fintech startups in Latin America:
Banco Original is an online and mobile bank solution that includes investment products.
Bankfacil is an online personal finance solution connects both borrowers and lenders, facilitating the access to credit and investment.
Kickante is a crowdfunding platform engaged with social causes in Brazil.
MoIP is an online payment solution for ecommerce entrepreneurs.
Nubank is an online and mobile bank solution.
Bankaool is an online and mobile bank solution.
Quotanda is an online student financing platform.
Aflore is an online personal finance solution connects both borrowers and lenders.
Bankity is an online finance management tool.
Becual is a crowdfunding platform.
Cumplo is a credit platform, aiming fair credit access to everybody.
Khipu is an online bank transfer platform.
Latin Fintech is an online lending and investment platform.
Fintech in LATAM – fulfillment and promises is an article by our guest writer Ana Graça. Please contact FintechValley, if, like Ana, you have an specific topic or expertise that could contribute bring fresh and new ideas to our website.