Why is Latam struggling with fintech? –


Latin America’s regulatory environment, which lags behind those of developed countries, is often described as one of the main challenges for the development of the region’s fintech sector.

It is no wonder that governments in the region are pushing for new laws and regulations to support the industry’s development.

However, except for the general excitement, fintech has developed unevenly in Latin America. The region’s digital banks counted more than 30 million users in 2021, but these were largely concentrated in Brazil and Mexico.

Central America in particular is still struggling to offer the right environment for the promotion of the fintech industry.

“We are often asked by governments in the region for advice on how to promote fintech laws,” says an official at a multilateral bank. “My opinion is that countries do not need a law. They first need to build a strong ecosystem which supports entrepreneurs, strengthens human capital and creates the conditions to make financing available for the fintech sector.” 

The increasing focus on regulation…

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