Fintech
A massive expansion in financial technology (fintech) has found some of its most enthusiastic advocates in Latin America, revolutionising lives. Millions of people across the region now have access to banking, credit and financial services for the first time through their smartphones, and in particular in Brazil, thanks to the rapid adoption of its Pix digital payments system.
In fact, between 2019 and 2023, the number of Latin American consumers without any form of account with a financial institution had dropped sharply to 21% from 45%, according to a Mastercard study. These statistics make clear that while financial inclusion in the region has made impressive strides in recent years, spurred by the nearly 3,000 fintechs operating in the region (Statista), there is still plenty of room for growth. Indeed, Latin Americans’ appetite for new and innovative financial solutions shows no sign of slowing.
To truly grasp the opportunities that the region’s increasingly competitive fintech markets offer, it is important that international companies understand the pain points, needs and desires of local populations in Latin America before introducing new products or solutions.
The Broadminded team has extensive experience in helping new fintech solutions launch in Latin America. We use on-the-ground research and data collection to identify and analyse the needs, interests and motivations of the public for using new financial services. We then carry out product testing and generate powerful messages for new entrants to stand out in the market.
Case study
Our team supported north-American fintech Airfox to launch a unique mobile wallet called banQi in Brazil in 2019, having identified a market of 50 million consumers without access to formal banking but with access to smartphones. Our research team conducted focus groups in low income urban communities to understand their attitudes towards banks and access to personal credit. We later tested their brand identity and communications narratives. Four years on, in 2023, the mobile app had been downloaded 16.5 million times (according to local press).
Opportunities
Remittances
Remittances play a key role in Latin American economies, offering potential opportunities for international companies to offer quicker and more cost efficient solutions. Formal remittances to Latin America have doubled over the past decade to 2022 to US$146 billion, representing faster growth than the global level, a recent study from Mastercard showed.
Insurtech
Insurtech (insurance technology) is another area that offers opportunities to international companies, given the alluring combination of the relative under-development of regional insurance markets coupled with fast growth. Insurance premium volumes in Latin America reached US$173.7 billion in 2022, according to Spanish insurer MAPFRE. That’s a 15.7% annual increase. But it represents just 2.6% of global premiums, while the region accounts for 8.4% of the global population.
Broadminded research services include:
- Market trends – Our team will conduct a thorough market investigation to identify opportunities and trends in each market
- Competitive analysis – Who else is active in the market? What do they do well? What are their weaknesses?
- Growth projections – Bringing together data from various sources, including contact with industry stakeholders, our team can map growth projections in the industry.
- Regulatory environment – what are the specific regulations that govern the financial sector in each market? What new ones are expected? What steps must be taken to ensure full compliance?
- Customer preferences – Is there real demand for your service or product? Our team will conduct consumer research with pertinent questions to help you understand the best market entry approach.
Talk to us now about your research needs.
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