Argentina doubled its participation in the FinTech market in the last two years, representing, according to Korefusión, the third country with the highest participation in Latin America.
According to the Inter-American Development Bank (IDB) in its “Fintech 2020 Study BID Ecosistema Argentino,” the three main segments of FinTech in Argentina are payments and remittances with 28%, loans 18% and business financial management 16%.
The Argentine Chamber of Fintech identified 268 companies that make up the Argentine ecosystem, marking a growth of 135 new companies compared to 2018.
However, the most relevant sector is digital payments, which encompasses a total transactional value of around US $ 18.68 billion.
One of the factors that have influenced this boom is that the FinTech sector has targeted the unbanked population that reaches 50% of the adult population of Argentina.
Through innovation and the use of new technologies, FinTechs are improving access to financial services. Currently, Argentina has six unicorns that are becoming increasingly important in the FinTech market.
"In the opinion of the companies surveyed, the benefits that this technology presents lie in a lower cost, greater security, and a better user experience compared to traditional systems," the IDB said in its study.
Since 2019 Argentina has the Law for the Promotion of the Knowledge Economy called the Software Law, which seeks to stimulate knowledge and the digitization of information supported by scientific and technological advances with the acquisition of goods, provision of services, and/or best practices.
According to the latest PwC survey, 83% of Argentine financial institutions expect to expand their partnerships with FinTech. According to this PwC study, 42% of Argentine executives consider integration with FinTech to co-create, and 32% to apply startup methodologies to product development.
"Fintechs can be leveraged to improve the design of transaction accounts and payment products, make them accessible to an underserved population, improve the user experience, achieve efficiency gains, and lower barriers to entry to the market," said the BID.
In this way, digital payments reduce insecurity regarding the use of cash, increasing financial transparency. Currently, Costa Rica is a member of the FinTech Association of Central America and the Caribbean, also, thanks to its strategic geographical location combined with its high level of education in technology and good English of its human capital, it is a perfect market for the proliferation of this sector.
Costa Rica ranks as the fourth Latin American nation with the highest percentage of financial inclusion, having 68% of its adult population with a bank account.
One of the sectors where FinTech has stood out the most is the payment means to market, offering a variety of faster, more efficient, and more accessible financial products and services to a sector that until now had been excluded from traditional banking.