According to a report published by the consulting firm KoreFusion, the fintech sector in Latin America reached a historical investment of more than USD 8 billion. There are three sectors that concentrate more than 95% of all investment in fintech startups in Latin America, with the Payments category accounting for 50.5% of the total, followed by Loans with 24.5% and Digital Banks with 21.6%.
KoreFusion is a strategic consulting and transaction firm specializing in the financial services, fintech and payments sectors, and shared with Cointelegraph en Español its Bitcoin Revolution Report on Latin America 2020.
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The report responds to the need for more analysis and granularity of information to support investment in the sector. The study identifies the fintech categories that have been able to attract the most investment, and offers a deep understanding of the maturity of ecosystems in Mexico, Brazil, Argentina, Chile and Colombia.
„It is clear that the changes generated in the sector since 2008 have not been sufficient and that the scenario generated by Covid-19 will further change the landscape for all players: banks and fintech. The maturity of emerging companies and their ability to deploy partnerships and attract more investment will be key to their success in overcoming today’s challenges,“ said Jan Smith, co-founder of KoreFusion.
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This study is the result of a curatorship of fintech reports, maps and databases published so far, unifying the companies in this sector in a complete classification, consisting of 12 categories and 45 subcategories, in addition to a detailed examination of the concentration of investment figures in the region.
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This is how it was found:
● 20% of the fintech registered in the five countries lacked relevant economic activity in the last 18 months.
● 58% of the fintech companies analyzed for their maturity are in a phase of expansion and growth, while 27% are young companies under five years of age and still in development.
● Brazil is the only country that has fintech „unicorns“ such as: PagSeguro, Nubank, Stone and EBANX.
KoreFusion has 25 years of experience serving as a partner and strategic advisor in mergers and acquisitions exclusively for the international fintech, payments and financial services industry.