Latin America is emerging as a new financial hub. A lot of big international banks, fintech companies, and other financial institutions have been setting up offices in major cities like Mexico City, Sao Paulo, Buenos Aires, Bogota, and Santiago recently.
The fintech sector in Latin America and the Caribbean is booming. According to a report from the Inter-American Development Bank and Finnovista, over 1,500 startups launched just last year, which is a 47% increase from the year before.
People are using more digital payments, e-commerce is growing, and there’s more innovation in financial services and advanced trading technologies. Cybersecurity is also a big focus. Total venture capital investment in fintech for 2023 reached $1.6 billion.
Fintech started by improving digital payments but now it’s expanded into e-commerce and other financial services too. Another report from Worldpay and GlobalData said traders in big Latin American economies like Brazil and Argentina will likely trade more digital assets like exchange-traded funds (ETFs) or cryptocurrencies along with more traditional things like forex and stocks.
Exness, a leading online trading company, recently opened their first regional office in Uruguay, which shows they want to grow more in Latin America. HQMENA, an events company based in Dubai, organized a financial expo in Mexico City that went well with traders and investors. They’ve announced another one in Bogota, Colombia on May 15-16, 2024 at the Coferias exhibition center there.
Consulting firm McKinsey & Company predicts that by 2028, profits from fintech in Latin America will grow three times faster than traditional banking.
With the fintech sector attracting $1.6 billion in venture capital just last year, Latin America presents many opportunities for fintech companies and forex brokers looking to expand globally.
