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AppsFlyer confirms that Latin America is experiencing massive growth in fintech

May 13, 2020

Latin America saw significant growth in financial technology companies. With this in mind, Marlon Luft, Regional Marketing Manager for Latin America at AppsFlyer, Cointelegraph shared his view of the fintech ecosystem.

“The financial technology sector, better known as fintech, has grown astonishingly quickly in recent years. The industry is driven by two strong forces: innovative mobile-first or mobile-only companies that attract massive investments, and traditional companies in the financial sectorAir explained

According to an analysis by Apps Flyer Financial mobile apps are the emerging star of the ecosystem: “In 2019 alone, the market share for installations increased by almost 90 percent, which is twice the growth rate of the previous year.”

AppsFlyer confirms that Latin America is experiencing massive growth in fintechAppsFlyer confirms that Latin America is experiencing massive growth in fintech

“In addition, according to KPMG, their investment remained high at $ 135.7 billion,” he added. There is currently fertile ground for innovation in this area, as demonstrated by the variety of services offered, including mobile banking, mobile payments and transfers, digital currencies, blockchain, loans, investments, insurance and more.

The rise of fintech applications

Luft emphasized that mobile applications play a central role in the fintech boom. “In fact, App Annie pointed out that users accessed these apps worldwide in 2019 (…), 100 percent more than in 2017,” he emphasized.

“We can see that Almost five out of 100 applications downloaded worldwide in 2019 were financial applications. Now it is the second highest category in terms of number of applications and the sixth largest in terms of overall installation, ”he added.

Latin America is experiencing massive fintech growth; mainly Mexico and Brazil.

According to Luft, fintech users have completely different needs and behaviors in each of the markets analyzed. “It is no coincidence that the highest growth is seen in the developing regions of Latin America, the Asia-Pacific region and Africa,” he said. And he said there are millions of users in these markets with either of these two characteristics:

  • Unbanked: People who do not have a bank account (with a traditional or digital bank).

  • Sub-bank: People who have a bank account but use other financial services outside the bank (e.g. money orders, payments, check cashing, loans) or people who do not have a credit card.

Among the developing countries that grew the most in this segment are those in the region Latin America: “This is the region that grew the most between 2018 and 2019 (128 percent) and also between 2018 and 2017 (59 percent) compared to the previous year.”

“Latin America, in turn, has the highest average of fintech installations per application (over 400,000). The region’s success is driven by Mexico as the eighth global market and Brazil, the third largest FinTech hub for mobile applications in the world,” he commented .

“According to our report, we see that Mexico is following a trend that is very similar to that of Brazil almost two years agoa positive future for the digital industry. In 2019, the use of these types of apps in Mexico increased by 145 percent from 2017 to 2019. Last year, according to the 2020 Finance Mobile Applications Report, 81 million apps were downloaded on iOS and Android, ”he added later.

Financial applications turn to marketing to drive demand

In conclusion, Marlo Luft pointed out that people are inherently cautious about money. And with financial applications, unlike other growing industries, the challenge is to train users, gain their trust, and ultimately make them recommend it to others.

“For word of mouth to work, apps also need to build a large, parallel user base. The best way to do this is to increase marketing investment to attract new users. As a relatively new industry, we see a large proportion of non-organic installations, an average of 53 percent. This shows that many applications are still building a strong user base that can potentially achieve the expected organic growth. “

About AppsFlyer

AppsFlyer offers a range of measurement and analysis solutions for marketers. They state that they focus on data protection and are customer-centric.

Changes and disruptions in finance

On April 28, Cointelegraph interviewed Erick Rincón Cárdenas, President of the Colombia Fintech Association, in Spanish. On this occasion, Cárdenas said:

“Fintech companies are revolutionizing the world. The industry is proposing a disruptive model that delivers the value of innovation, technology, and efficient service delivery while always thinking about the user experience – simple, agile. Coverage of the fintech industry promotes financial inclusion, and various segments have been developed, including digital payments, digital loans, electronic invoice and title negotiation, blockchain and crypto assets. Of course, fintech companies are revolutionizing the world. It is an industry that proposes a disruptive model that has the added value of generating financial solutions that help entrepreneurs, small businesses and individuals (…). ”

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