According to a report by the consulting firm KoreFusion, the fintech industry A historic investment of more than $ 8 billion has been made in Latin America. There are three sectors that concentrate more than 95% of all investments in fintech startups in Latin America, with the payments category accounting for 50.5% of the total, followed by lending with 24.5% and digital banks with 21.6%.
KoreFusion is a strategic advisory and transaction firm specializing in the financial services, fintech and payments sectors and has submitted its Fintech Latin America 2020 report to Cointelegraph en Español.
The report responds to the need to provide more analysis and granularity of information to support investments in the sector. The study allows for the identification of the fintech categories that have attracted the most investment and provides a deep understanding of the maturity of ecosystems in Mexico, Brazil, Argentina, Chile, and Colombia.
“It is clear that the changes in the industry since 2008 are not enough and that the scenario brought about by Covid-19 will continue to change the landscape for all players: banks and fintech. The maturity of emerging companies and their ability to forge alliances and attract greater investment will be vital for them to face current challenges, “said Jan Smith, co-founder of KoreFusion.
This study is the result of a collection of reports, maps and fintech databases published to date that group companies in this sector into a full classification of 12 categories and 45 sub-categories.In addition to a detailed study of the concentration of investment figures in the region.
It was found that:
● 20% of the fintech companies registered in the five countries have no relevant economic activity in the past 18 months.
● 58% of the Fintech companies analyzed for their maturity are in a phase of expansion and growth, while 27% are young companies less than five years old and still developing.
● Brazil is the only country that has fintech unicorns. such as: PagSeguro, Nubank, Stone and EBANX.
For 25 years, KoreFusion has been a partner and strategic advisor on mergers and acquisitions exclusively for the international fintech, payment and financial services industries.
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