By concentrating on financial inclusion, Latin America shows other parts of the world how to navigate testing times.
The IMF estimates that Central America will grow by 3.9% this year, the Caribbean is predicted to see a tourism bounce, and the region is setting global standards, according to Boston Consulting Group’s managing director, Saurabh Tripathi.
“Like many emerging markets, Latin America is a hotbed of financial innovation,” said Tripathi to Costa Rican newspaper La República. “In fact, some of the most cutting-edge developments in global banking originate [in Latin America]. These aren’t just regional success stories, but global benchmarks. Latin America is leading by example, and the world is paying attention.”
Tripathi cited two examples: Nubank, which started in Brazil and has spread to Colombia and Mexico. Nubank passed 100 million customers in May 2024 and has a market capitalization of $56.6 billion. Meanwhile, the Central Bank of Brazil’s Pix payment platform has transformed the nation’s instant payments system with more than 155 million users, 15 million companies, and over 6 billion transactions monthly. In 2024, Pix had a 53% year-on-year growth and surpassed credit card transactions.
However, Tripathi warned that more than 50% of the total capital invested in the world banking sector is trading below its value. This suggests that banks are not generating enough returns to cover capital costs, which in turn means they cannot enact societal transformation.
“We are on the verge of a banking revolution that will redefine how banks operate, how they serve society, and how they build trust,” he added.
In March, Brazilian bank Itaú unveiled instant global payments, and the latest unicorn in the region is Mexican digital bank Plata, which raised $160 million in Series A funding led by New York-based Kora that valued the two-year-old company at $1.5 billion.
Bolivia, Chile, and Ecuador have fielded projects ranging from financial inclusion to client experience, which won awards during the Fintech Americas Miami conference in March.
Other regional entities that received multiple awards include Grupo AutoFácil, BAC, Banco Atlántida, BBVA, BCP, Citi, Davivienda, and Santander.
