Fintech
FinTech unicorns thrive as Latin American growth outpaces global tech growth, led by Brazil and Mexico
By Puja Sharma
Today
- financial development
- fintech progress
- FinTech Latin America
The Latin America region is considered the best source of tech unicorns
With growth in Latin America, particularly Brazil and Mexico, outpacing global technology potential, FinTech unicorns are thriving in the region more than ever
Once overlooked by the global tech industry, 2024 marks Latin America (LatAm) as the best region for tech “unicorns,” and especially FinTech startups, to emerge as game-changers and industry leaders . Around the world, companies are realizing the benefits of the region’s emerging tech talent and market potential and flocking to be part of the region’s exponential growth.
The region’s recent growth can be attributed to massive venture capital investments in recent years nearly $15 billion raised in 2021. This funding comes primarily from companies in the US who have recognized the power of the region’s growing IT sector, accessible FinTech tools and the acceptance of financial inclusion solutions via industry regulators – an extremely important factor in promoting FinTech .
Brazil and Mexico currently lead the way with the largest number of unicorn companies valued at over $1 billion, and this growth is set to continue throughout 2024 and beyond, as already demonstrated in the recent QI Tech’s rise to unicorn status in the area.
“It is clear that Latin American markets cannot be underestimated when it comes to their place in the technology sector,” he said Jeremy Baber, CEO of Lanistar. “By investing in rapidly developing FinTech, LatAm is quickly establishing itself as the next big leader in talent and potential for developing companies.”
Where the region was once considered immature, in 2024 many should look to Latin America, particularly Brazil and Mexico, as leaders in FinTech investment and technological advancement. Growth in Latin America is already outpacing more established regions, particularly in the FinTech sector, driven by the need for financial inclusion solutions.
Baber agrees that he attributes the region’s popularity and growth to a combination of its tech-oriented workforce and its proximity to the United States. The Gen Z and Millennial demographics aren’t just in favor of new FinTech developments for their convenience. Their demographics are also more tech-savvy than previous generations and more eager to embrace the future of technology and further careers in IT.”
“Similarly, real-time collaboration with the US is easier due to the same time zones, which means greater investment towards a more local region compared to outsourcing worldwide. Business relationships become stronger when there is a greater ability to interact during working hours.
Latin American governments and regulators have proven to be more supportive of FinTech, cryptocurrency and new finance developments, as previously seen with El Salvador. FinTech needs an appetite for change and the next big technology to thrive, and so the region’s alignment with these values has made it particularly powerful for FinTech unicorns.
This is clear for Brazil, which leads the league as a great source of the best in FinTech developments. Without a doubt, with continued greater support from improved education, government initiatives and the encouragement of digital innovation, the country will see even greater growth in the FinTech landscape for the market to capitalize on.