FinTech Is Booming In Brazil

FinTech Is Booming In Brazil

Global investments in fintech companies have been on the rise during the last two years, reaching a new high of $15 billion in six months by the middl

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Global investments in fintech companies have been on the rise during the last two years, reaching a new high of $15 billion in six months by the middle of 2016.

Also, Brazil is reportedly seeing a fintech boom, according to the Brazilian fintech association, ABFintech (abfintech.com.br).

“Based on our latest figures, there are now 244 fintechs in Brazil. The number of startups in the sector have tripled in the last two years.”, as Rodrigo Ubaldo, president of ABFintechs, said in an interview with techcrunch.com.

The online media speculated that the lack of banking services has created an opportunity for investors and entrepreneurs seeking to start their businesses in Brazil and the Latin American region.

The largest private bank in Latin America, Itaú Unibanco has reportedly claimed that 40 percent of Brazilians remain excluded from traditional banking systems. At the same time, 85 percent of Brazilian citizens live in cities, while smartphones are broadly adopted in the country.

“One key driver of the rise in fintechs in Brazil and Latin America is that the region has faced a severe banking crisis that’s lasted more than a decade. Today, there’s pent-up demand to fulfill funding for consumers and small businesses that are driving the bulk of new employment as Brazil continues to emerge from a deep economic crisis.”, according to an excerpt from techcrunch.com.

Despite the recession, World Bank has said that it expects the economy in Latin America to grow by 1.8 percent during 2017. Brazil and Mexico are forecasted to be among the markets to expand, while Europe is first in the race. Still, investors find Latin America attractive as it allows them to bypass the strict laws of the Eurozone and enter a much larger market with high penetration of mobile use.

Techcrunch has compiled an extensive list of innovative fintechs in the region. Some of them include Kitado, an online debts negotiation platform, EBANX, a payment solution that allows sending money around the world and Simplic, an online platform and mobile app that makes it easier to send personal loans(full list available here).

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