Financial sector startups in Latin America received US$15.6 billion in resources with 1658 rounds during the period of 2014 to the first half of 2024, according to the FinTech Report 2024 produced by the District, the main emerging technologies platform in Latin America. During the same season, that is, 10 years, FinTechs in Brazil, concentrated US$10.4 billion in investments (66,67% of the total) and 1034 deals.
“The fintech market in Latin America has not only withstood global economic challenges, but has also reinvented itself with innovation and resilience.With robust growth, registering a 75% increase in investments in the first half of 2024 compared to the same period in 2023, fintechs are leading the digital transformation of the financial market, democratizing access to services and driving financial inclusion throughout the region,” explains Gustavo Gierun, CEO and co-founder of the District.
The year with the highest investment in the sector was 2021, which reached US$ 5.7 billion in funding, in 363 rounds. Already the year that registered the largest number of startups founded was 2019, with 298 new fintechs, totaling 2214 companies in this segment in the region that year. Currently there are 2712 active fintechs, with the highest concentration is in Brazil, with 58,7% of startups in the sector, followed by Mexico, with 20,7% of companies.
Investment volume per quarter: 2023 2024
| Year | Quarter | Number of deals | Investment volume (in US$ billions) |
| 2023 | 1T | 36 | 0,2 |
| 2023 | 2T | 41 | 0,2 |
| 2023 | 3T | 28 | 0,3 |
| 2023 | 4T | 37 | 0,4 |
| 2024 | 1T | 42 | 0,3 |
| 2024 | 2T | 41 | 0,4 |
The first half of 2024 stands out for M&As operations. This year, 16 transactions have already been carried out in Latin America.
Top 5 rounds from 2024 to the first half:
| Startup | Country | Category | Subcategory | Stage | Volume |
| QI Tech | Brazil | Integrated financial platforms | Banking as a Service | Series B | 250 |
| Celcoin | Brazil | Integrated financial platforms | Banking as a Service | Series D | 125 |
| Clip | Mexico | Means of Payment | PdV | Series D | 100 |
| Placid | Mexico | Credit | Direct Offer | Series B | 70 |
| Simple Account | Brazil | Backoffice | Financial Management | Series B | 41,6 |
*QiTech had an extension of the round in 2024 which made it unicorn
Categories in FinTechs in Latin America
Among the categories, Credit ranks first with 477 startups and 18% of the total fintechs in Latin America. However, if we consider the volume of investments, the lead in the period was the fintechs of “Digital Services”, which added US$5.3 billion in funding, followed by those experts in Credit solutions, which received US$3.1 billion in investments.
Top 5 biggest categories:
| Category | Number of startups | Participation (in %) |
| Credit | 477 | 18% |
| Means of Payment | 390 | 14,4% |
| Backoffice | 323 | 11,9% |
| Integrated financial platforms | 308 | 11,4% |
| Digital Services | 287 | 10,6% |
Investment by category:
| Category | Investment volume (US$ billion) | Number of deals |
| Digital Services | 5,3 | 195 |
| Credit | 3,1 | 380 |
| Means of Payment | 2,3 | 192 |
| Integrated financial platforms | 1,1 | 180 |
| Backoffice | 0,8 | 168 |
| Others* | 3,0 | 543 |
Current movements in the sector
The Central Bank of Brazil was responsible for the main changes in the segment. Among the most recent is the PIX transaction by approximation in partnership with Google Pay and Apple Pay, scheduled for this year.
Another BC action carried out in 2024 is the regulation of Banking as a Service (BaaS), a public consultation planned to define guidelines for this new way of offering banking services.In addition, the institution has been active in the implementation of financial education programs in banks, with the objective of expanding the knowledge and awareness of financial responsibility of citizens. The movement was mapped by the District in the EdTech Report 2024 as a growing trend in the educational sector.
Along with the PIX system, there is also Drex, a system still being tested by the BC. The simulations involve a RWA token (Real World Assets) for transactions between individuals, companies and B2B transactions. In the legislative area, the latest changes allow Brazilian fintechs to raise the Income Tax (IR) based on presumed profit, potentially reducing the tax burden by up to 50%, which allows the national financial market to become more competitive to stimulate the creation of financial services startups.
Open Finance was another important change that came to guide financial institutions in the implementation and supervision of the service. The new interactions in the first half of this year, with integrations, customization and information security, show the advances and improvements in the process of sharing financial data.
Main trends
The FinTech sector plays a pioneering role in the adoption of new technologies, especially led by the adoption of AI. Among AI startups in Latin America, 83 are fintechs, according to the Emerging Tech Report 2024, carried out by the District. Generative AI is another recent trend and can add between US$200 billion and US$340 billion to the global banking sector annually, improving personalization for strategic decisions.
The transformations of the segment also include tokenization, a market that is expected to grow from US$ 6.8 billion in 2024 to US$ 23.4 billion by 2032, according to Market Research Future. The trend follows on the BC radar that prioritizes the regulation of asset tokenization.
Banks and fintechs are expanding their services beyond traditional financial transactions. Nubank, for example, offers Nubank Shopping, an online shopping platform with discounts and cashback.“When following and adopting trends, the national and Latin American market is stimulated to become more dynamic and inclusive, facilitating the creation of new innovative and personalized solutions that may arise”, concludes Gierun.
