Financial Technology in Latin America

Latin America has a large unbanked or underbanked population that owns smartphones. This population is in a position to benefit from the rapid growth in Fintech companies such as neobanks in the region. New regulatory frameworks have also evolved in the region, which have stimulated the growth of the Fintech industry. An additional benefit of Fintech at the national level is that the digitization of financial services helps to formalize the informal economy. The benefits offered by Fintech companies were especially apparent during the COVID-19 pandemic. A large number of disadvantaged groups had accounts with Fintech companies, which provided them access to essential services such as the delivery of medicines and groceries at home during the COVID-19 pandemic that would not otherwise be possible