The success story of fintechs in Latin America is entering a new phase. After five years of explosive growth, the ecosystem has expanded by over 340% in the last six years, according to the Inter-American Development Bank — a new factor may now level the playing field and drive not only more growth but also more opportunities for startups. AI agents are transforming how financial services startups connect with clients, enhance inclusion, and reduce costs. These agents offer startups the chance to scale faster and smarter than their predecessors. See how they are reshaping the future of the fintech sector in Latin America.
Empowering customer engagement through AI agents
AI agents are revolutionizing customer interactions in financial startups by taking the frontline of 24/7 support, as well as handling more complex tasks like financial advice. According to Finextra, financial institutions utilizing customized agents saw a 30% improvement in customer satisfaction and a 20% increase in conversion rates.
Some of the biggest players in the region are already reaping the rewards. MercadoLivre, for instance, integrated AI and machine learning to offer personalized financial services — a move that helped boost its market value to over 100 billion dollars, according to Reuters.
Now, with the rise of cloud computing in Latin America (growing at an annual compounded rate of 15%) and the decrease in processing costs, what was once the privilege of tech giants is becoming accessible to a new generation of startups. This shift in offerings is enabling growing companies to build AI solutions internally or adopt the AI as a Service (AIaaS) model to optimize their operations. Recently, a major Mexican retailer used AIaaS to digitize its consumer credit approval process — reducing wait time from one week to just 15-20 minutes, significantly enhancing the customer experience.
Advancing Financial Inclusion
With the growth of the fintech ecosystem in Latin America, financial inclusion has also progressed — albeit unequally and limitedly. According to a 2023 Mastercard study, 21% of Latin Americans remain outside the formal financial system. Although 79% have a debit card and/or bank account, only three in ten have access to more advanced services like credit, loans, and insurance.
AI agents are becoming an essential tool for accelerating the progress of financial inclusion, allowing financial services startups to take a central role in this expansion. The World Economic Forum states that the use of AI agents can trigger a “technological leap through AI” in developing economies like Latin America, enabling financial services to reach underserved populations directly, without relying on traditional infrastructure.
The CGAP reports that AI agents contribute to inclusion by processing complex transactions and operations while keeping interactions with the customer simple. For example, while an AI agent can analyze diverse datasets to create customized financial products, it can communicate all transaction steps via WhatsApp, understand voice commands from the customer, or offer simplified decision flows – facilitating inclusion even in rural areas with low education levels.
Furthermore, by intelligently processing more varied datasets, AI agents can also calculate fair loan costs and increase approval rates for individuals with little or no financial history. A Brazilian financial services company that used AI to analyze alternative credit data for underbanked customers saw a 25% increase in credit approvals, while maintaining low default rates.
Optimizing operations and reducing costs
The benefits of AI agents are not limited to customer experience and financial inclusion – startups looking to keep their operational costs low are also finding efficiency. Fintech Galileo reported that its AI agent reduced back-office calls by 70%.
At Gupshup, financial institutions that implemented AI agents have seen a 40% to 50% reduction in operational costs related to customer service and loan processing. These efficiency gains come from automating document handling, reducing manual intervention in routine tasks, and optimizing workflow management.
Given these three factors – enhanced customer engagement, increased inclusivity, and cost reduction – AI agents are becoming an essential tool for the next generation of financial services startups. Moreover, various venture capital funds in Latin America are already gearing up to increase investments in startups offering credit products and artificial intelligence. This means that fintechs embracing AI agents will become even more attractive investment options.
In short, AI agents are not just the future of financial services in Latin America – they are already the smartest bet of the present.
