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The dawn of fintech in Latin America: landscape, prospects and challenges

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  • Bank for International Settlements

Abstract

Fintech in Latin America is greeting the dawn. We take stock of how it is transforming financial services in the region. First, we describe the fintech landscape in terms of investment, firms and services provided. We find that fintech has quickly gained traction in Latin America, mainly in the areas of payments and alternative finance. Second, we evaluate the prospects for fintech by exploring the institutional framework to supervise and regulate it. We show that fintech regulation in the region takes an activity-based approach rather than an entity-based one, except in Mexico. Finally, we present the challenges that fintech faces in becoming a game changer for the region. We conclude that fintech can be a strong catalyst to improve financial and social conditions in Latin America by incorporating the unbanked into the financial system and providing alternative sources of finance to firms.

Suggested Citation

  • Bank for International Settlements, 2020. "The dawn of fintech in Latin America: landscape, prospects and challenges," BIS Papers, Bank for International Settlements, number 112.
    • Handle: RePEc:bis:bisbps:112
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    References listed on IDEAS

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    Cited by:

    1. León, Carlos, 2021. "The dawn of a mobile payment scheme: The case of Movii," Working papers 78, Red Investigadores de Economía.
    2. Batiz-Lazo, Bernardo & González-Correa, Ignacio, 2021. "Start-ups, Gender Disparities, and the Fintech Revolution in Latin America," MPRA Paper 109373, University Library of Munich, Germany.

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