South America Challenger Banks Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers South America Challenger Banks Market Analysis and It is Segmented by Service Type (Payments, Savings Products, Current Accounts, Consumer Credit, Loans, and Others) and by End-User Type (Business Segment and Personal Segment). The Market Size and Forecasts for Challenger Banks in South America are Provided in Terms of Transaction Volume And/Or Revenue (USD) for all the Above Segments.

South America Challenger Banks Market Size

Challenger Banks In South America Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 389.26 Billion
Market Size (2029) USD 703.71 Billion
CAGR (2024 - 2029) 12.57 %
Market Concentration Low

Major Players

Challenger Banks In South America Major Players

*Disclaimer: Major Players sorted in no particular order


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South America Challenger Banks Market Analysis

The Challenger Banks In South America Market size in terms of transaction value is expected to grow from USD 389.26 billion in 2024 to USD 703.71 billion by 2029, at a CAGR of 12.57% during the forecast period (2024-2029).

The market is poised for notable expansion, propelled by the rising prevalence of digital banking throughout Latin America. This shift originated prominently in Brazil with the rise of regional leader Nubank. Targeting primarily tech-savvy, young consumers renowned for their readiness to switch between providers, these digital lenders have entered the market alongside standalone challenger banks and neobanks, benefiting from low entry barriers and minimal friction levels. Additionally, a multitude of fintech firms are reshaping conventional banking value chains, perpetually seeking fresh revenue avenues and market prospects.

Additionally, Chile's prepaid card market is witnessing growth, propelled by the proliferation of challenger banks and neobanks in South America. Noteworthy entrants include the local unit of Peru-headquartered financial services giant Credicorp. Furthermore, companies like B89 are seeking partnerships with financial institutions, as regulations mandate a physical banking presence. This evolving landscape underscores the dynamic nature of South America's banking sector, fueled by innovation and a shifting consumer landscape, presenting ample opportunities for growth and market expansion.

South America Challenger Banks Market Trends

Rising Fintech Investments in South America Fueling the Growth

Challenger Banks are a relatively new phenomenon in South America but are gaining popularity quickly. These banks are primarily digital, providing their services through mobile applications and websites, and they often offer lower fees and better customer service than traditional banks. In recent years, there has been a rise in fintech investments in South America, which has fueled the growth of challenger banks. These investments have allowed these banks to expand their offerings and reach a wider audience. Some of South America's most popular challenger banks include Nubank, Banco Inter, Neon, and C6 Bank.

Overall, Challenger Banks are becoming increasingly popular in South America, thanks in part to the rise in fintech investments in the region. These banks provide consumers with more options and better services than traditional banks and are likely to continue to grow in popularity in the coming years.

Challenger Banks In South America: Value of Investment in Fintech, In USD Million, By Country, South America, 2022

Increasing Demand for Digital Banking Services

Fintech companies in South America are leveraging technology to reach underserved populations and unbanked individuals, providing them with access to essential financial services such as savings accounts, payments, credit, and insurance. By expanding financial inclusion, fintech investments empower marginalized communities, reduce poverty, and promote economic empowerment. Fintech solutions are revolutionizing the way payments and remittances are made in South America, offering convenient, secure, and cost-effective alternatives to traditional banking channels. Digital payment platforms, mobile wallets, and remittance services facilitate seamless money transfers, cross-border transactions, and peer-to-peer payments, driving financial efficiency and reducing transaction costs for businesses and consumers. Fintech lending platforms and alternative credit scoring models are democratizing access to credit for small and medium-sized enterprises (SMEs), entrepreneurs, and individuals who may have limited credit history or collateral.

Challenger Banks In South America: Digital Payment Transaction Value, In USD Billion, South America, 2019-2022

South America Challenger Banks Industry Overview

The Challenger Banks Market in South America is still relatively new and fragmented, with several digital banks competing for customers in different countries across the region. While there are a few established players, such as Nubank in Brazil and Banco Inter in Brazil, the market is still open for new entrants to gain market share.

South America Challenger Banks Market Leaders

  1. NU Bank

  2. Uala

  3. Albo

  4. nequi

  5. Banco Inter

*Disclaimer: Major Players sorted in no particular order

Challenger Banks In South America Concentration
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South America Challenger Banks Market News

  • In November 2023, N26, a German challenger bank, announced its exit from Brazil, marking the end of its two-year stint in the South American market. This move aligns with N26's strategic shift in geographical focus. The bank made its foray into Brazil in 2021, having obtained a Sociedade de Crédito Direto (SCD) license from the Banco Central do Brasil.
  • In October 2023, Nubank had introduced over 40 new products and features, including innovative credit options like FGTS anniversary withdrawal anticipation and NuConsignado for INSS retirees and pensioners. With operations in Brazil, Colombia, and Mexico, Nubank has exceeded 90 million customers in Latin America, solidifying its position as one of the world's fastest-growing financial services firms.

South America Challenger Banks Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Insights on Partnerships between Challenger Players And Other FinTechs

    7. 4.7 Latest Technologies Deployed by Challengers in Banking System

    8. 4.8 Performance Indicators of Challenger Banks

    9. 4.9 Industry Policies And Government Regulations

    10. 4.10 Impact of COVID-19 on the Market


    1. 5.1 By Service Type

      1. 5.1.1 Payments

      2. 5.1.2 Savings Products

      3. 5.1.3 Current Account

      4. 5.1.4 Consumer Credit

      5. 5.1.5 Loans

    2. 5.2 By End-User Type

      1. 5.2.1 Business Segment

      2. 5.2.2 Personal Segment


    1. 6.1 Market Competition Overview (Market Concentration And M&A Deals)

    2. 6.2 Company Profiles

      1. 6.2.1 NU Bank

      2. 6.2.2 Uala

      3. 6.2.3 Albo

      4. 6.2.4 Nequi

      5. 6.2.5 DaviPlata

      6. 6.2.6 Banco Inter

      7. 6.2.7 Neon

      8. 6.2.8 C6 bank

      9. 6.2.9 Burbank*

    3. *List Not Exhaustive

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South America Challenger Banks Industry Segmentation

A challenger bank, on the other hand, is a smaller, newer bank aiming to compete or challenge these traditional banks directly using modern financial practices. Many have turned away from branch-based banking and operate solely online or through an app. A complete background analysis of the market, which includes emerging trends by segments, significant changes in market dynamics, and a market overview, is covered in the report. 

The challenger banks in South America are segmented by service type and end-user type. By service type, the market is sub-segmented into payments, savings products, current accounts, consumer credit, loans, and others. By end-user type, the market is sub-segmented into business segment and personal segment. The report offers market size and forecasts for challenger banks in south america regarding transaction volume and revenue (USD) for all the above segments.

By Service Type
Savings Products
Current Account
Consumer Credit
By End-User Type
Business Segment
Personal Segment
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South America Challenger Banks Market Research FAQs

The South America Challenger Banks Market size is expected to reach USD 389.26 billion in 2024 and grow at a CAGR of 12.57% to reach USD 703.71 billion by 2029.

In 2024, the South America Challenger Banks Market size is expected to reach USD 389.26 billion.

NU Bank, Uala, Albo, nequi and Banco Inter are the major companies operating in the South America Challenger Banks Market.

In 2023, the South America Challenger Banks Market size was estimated at USD 340.33 billion. The report covers the South America Challenger Banks Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the South America Challenger Banks Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

South America Challenger Banks Industry Report

Statistics for the 2024 South America Challenger Banks market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Challenger Banks analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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South America Challenger Banks Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)