LATAM

1. Market Size and Growth Rate

• The Latin American fintech market, which includes credit services, is valued in excess of USD 150 billion, with a compound annual growth rate (CAGR) of around 20% .
• Specific to the credit market, the region is expected to see substantial growth as more consumers and small businesses gain access to credit through digital platforms.

2. Unbanked and Underbanked Population

• Approximately 45% of the adult population in LATAM remains unbanked, presenting a vast opportunity for credit providers to expand their services .
• Fintech companies are playing a crucial role in bridging this gap by offering innovative credit products tailored to the needs of these populations.

3. Digital Transformation

• High internet and smartphone penetration rates in LATAM are facilitating the adoption of digital financial services. Over 70% of the population has internet access, and smartphone usage is widespread, enabling easier access to credit products .
• The region is witnessing a surge in digital banking and mobile payment platforms, which are instrumental in expanding access to credit.

4. Regulatory Support

• Governments across LATAM are implementing regulations to support fintech innovation and financial inclusion. This regulatory environment is conducive to the growth of credit products and services .
• Initiatives such as regulatory sandboxes and open banking frameworks are fostering a more competitive and innovative credit market.

5. Economic Factors

• Economic growth in countries like Brazil, Mexico, and Colombia is driving demand for consumer and business credit. As these economies expand, the need for credit products to support consumption and investment increases .
• The rise of the middle class and increasing disposable incomes are also contributing to the growing demand for credit.