Here are the Countries with the Most Fintech Startups in Latam
The fintech landscape in Latin America and the Caribbean (LAC) has seen remarkable growth and transformation over recent years. These insights are drawn from the IV Fintech Report in Latin America and the Caribbean, “A Consolidated Ecosystem with Potential to Contribute to Regional Financial Inclusion,” conducted by Finnovista, BID, and BID Invest.
This section presents the geographic distribution of the 3,069 fintech companies identified in the region, alongside a detailed analysis of the five main markets (Brazil, Mexico, Colombia, Argentina, and Chile) and emerging markets (Peru, Ecuador, Dominican Republic, Uruguay, Costa Rica, and Guatemala). The report delves into the evolution from 2017 to 2023, highlighting trends, challenges, and opportunities that shape the fintech ecosystem, providing a comprehensive and multidimensional perspective on the sector.
Geographic Distribution of Fintech Companies
Leading Fintech Markets
The LAC region hosts a total of 3,069 fintech companies distributed across various countries. In 2023, Brazil and Mexico lead the sector, with 722 (23.53%) and 618 (20.14%) companies respectively. These two countries represent nearly 44% of all fintech companies in the region. Following them are Colombia with 409 (13.33%), Argentina with 312 (10.17%), and Chile with 305 (9.94%), together accounting for 77.1% of the total fintech companies in LAC.
Emerging Markets
Emerging markets such as Peru (5.31%), Ecuador (3.03%), the Dominican Republic (2.12%), Uruguay (1.69%), Costa Rica (1.56%), and Guatemala (1.11%) are showing significant growth, collectively representing 14.8% of the total fintech companies in the region. These countries are demonstrating dynamic development and an increasing adoption of financial technologies.
Other Markets
The remaining group, which includes Panama, Bahamas, Paraguay, El Salvador, Bolivia, Jamaica, Honduras, Venezuela, Belize, Barbados, Nicaragua, Guyana, Haiti, Trinidad and Tobago, and Suriname, represents 8.1% of the total fintech companies in LAC. Although their participation is smaller, these markets are beginning to integrate fintech solutions to enhance financial inclusion and facilitate digital transactions.
Analysis of the Leading Fintech Markets
Brazil
Brazil is the undisputed leader in the fintech sector in LAC, showing exponential growth since 2017, despite a slight reduction in the number of companies due to a change in counting methodology. In 2023, Brazil had 722 fintech companies, a 17% decrease from previous years, but this adjustment reflects the market's consolidation and maturation. Despite the recent reduction, Brazil has experienced sustained growth since 2017, with an average annual increase of 21%.
Mexico
Mexico has consolidated itself as the main Spanish-speaking fintech market in the region, with significant growth from 180 fintech companies in 2017 to 618 in 2023. This 243% increase reflects a robust development of the Mexican fintech ecosystem, with an average annual growth rate of 23%. Although it faces challenges such as a low banking penetration rate and a developing regulatory framework, Mexico shows notable progress in the Financial Institutions Technology segment, with 15% of its ecosystem dedicated to this area.
Colombia
Colombia stands out as the main Andean economy in the fintech sector, recording an impressive growth of 387% since 2017. With a total of 409 fintech startups in 2023, Colombia has the highest annual growth rate in the region, averaging 30%. The Loans segment is the most prominent in Colombia, with a particular focus on credit solutions for individuals, driven by innovations in credit scoring and a favorable regulatory environment.
Argentina
Despite economic challenges, Argentina has shown significant progress in its fintech sector, with a 333% increase in the number of companies since 2017. In 2023, Argentina had 312 fintech companies, with an average annual growth rate of 28%. The Loans segment dominates the Argentine fintech ecosystem, and the country also stands out for its adoption of cryptocurrency-based solutions, with 8% of its fintech companies dedicated to this segment.
Chile
Chile has experienced remarkable growth in its fintech sector, increasing from 65 companies in 2017 to 305 in 2023, representing a 369% increase. With an average annual growth rate of 29%, Chile is the second fastest-growing market in the region. Its robust technological infrastructure and high rates of digitalization and banking penetration have allowed the Payments and Remittances segment to lead the Chilean fintech ecosystem, notable for its high level of banking integration and technological adoption.
The five leading fintech markets in LAC have shown significant growth, increasing from 631 companies in 2017 to 2,366 in 2023, indicating a 275% increase. However, their share of the regional fintech landscape has decreased, reflecting faster growth in other markets and diversification of the fintech ecosystem in LAC.
Emerging markets are developing with notable dynamism, and the Central American region stands out for its high proportion of fintech companies dedicated to Payments and Remittances, driven by the high inflow of remittances and the demand for local solutions tailored to each country's specific needs.