Startups in the financial sector in Latin America received US$15,6 billion in resources with 1658 rounds during the period from 2014 to the first half of 2024, according to the FinTech Report 2024 produced by Distrito, the main platform for emerging technologies in Latin America. During the same season, that is to say, 10 years, as FinTechs in Brazil, concentrated US$10,4 billion in investments 66,67% of the total) and 1034 deals.
The fintech market in Latin America not only withstood global economic challenges, but also reinvented itself with innovation and resilience. With robust growth, registering a 75% increase in investments in the first half of 2024 compared to the same period in 2023, fintechs are leading the digital transformation of the financial market, democratizing access to services and driving financial inclusion across the region,"explains Gustavo Gierun", CEO and co-founder of Distrito.
The year with the highest investment in the sector was 2021, that reached US$ 5,7 billion in fundraising, in 363 rounds. The year that recorded the highest number of startups founded was 2019, with 298 new fintechs, totaling 2214 companies in this sector operating in the region that year. Currently, there are 2712 active fintechs, given that the largest concentration is in Brazil, with 58,7% of the startups in the sector, followed by Mexico, with 20,7% of companies.
Investment volume by quarter: 2023 – 2024
| Yes | Quarter | Number of deals | Investment volume (in billion US$) |
| 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&A operations. This year, 16 transactions have already been made in Latin America.
Top 5 rounds of 2024 until the first half
| Startup | Country | Category | Subcategory | Internship | 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 | Payment Methods | PdV | Series D | 100 |
| Postponement | Mexico | Credit | Direct Offer | Series B | 70 |
| Simple Account | Brazil | Back office | Financial Management | Series B | 41,6 |
QiTech had an extension of the round in 2024 which made it a 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 leadership during the period was of the fintechs of "Digital Services", that totaled US$5,3 billion in fundraising, followed by those specialists in Credit solutions, that received US$3,1 billion in investments.
Top 5 largest categories
| Category | Number of startups | Participation (in %) |
| Credit | 477 | 18% |
| Payment Methods | 390 | 14,4% |
| Back office | 323 | 11,9% |
| Integrated financial platforms | 308 | 11,4% |
| Digital Services | 287 | 10,6% |
Investment by category
| Category | Investment volume (US$ billion) | Number of deals |
| Digital Services | 5,3 | 195 |
| Credit | 3,1 | 380 |
| Payment Methods | 2,3 | 192 |
| Integrated financial platforms | 1,1 | 180 |
| Back office | 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 sector. Among the most recent is the PIX transaction by proximity in partnership with Google Pay and Apple Pay, scheduled for this year.
Another action by the BC carried out in 2024 is the regulation of Banking as a Service (BaaS), public consultation planned to define guidelines for this new way of providing banking services. Furthermore, the institution has been working on the implementation of financial education programs in banks, with the aim of expanding citizens' knowledge and awareness of financial responsibility. 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, system still in testing phase by the BC. The simulations involve an RWA (Real World Assets) token for operations between individuals, B2B companies and transactions. Already in the legislative area, the latest changes allow Brazilian fintechs to calculate Income Tax (IR) based on presumed profit, potentially reducing the tax burden by up to 50%, what enables 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, personalization and information security, show the advances and improvements in the financial data sharing process.
Main trends
The FinTech sector plays a pioneering role in the adoption of new technologies, starring, especially, for the adoption of AI. Among the 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 could add between $200 billion and $340 billion to the global banking sector annually, improving personalization for strategic decisions.
The transformations of the segment also include tokenization, market that is expected to grow from US$ 6,8 billion in 2024 for US$ 23,4 billion by 2032, according to Market Research Future. The trend remains on the radar of the Central Bank, which 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. "By following and adopting trends", the national and Latin American market is encouraged to become more dynamic and inclusive, facilitating the creation of new innovative and personalized solutions that may arise, finalizes Gierun.
