Challenger Banks in South America - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The challenger bank market in South America is segmented based on the services offered and the end-user type - Growth, Trends, and Forecast (2020-2025)

Market Snapshot

Challenger Banks in South America (2020-2025)
Study Period: 2016 - 2026
Base Year: 2021
CAGR: 12.5 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

Digital banking is expanding across Latin America after getting a major foothold in 2013 in Brazil, home to regional pioneer Nubank. Digital lenders particularly target young, tech-savvy consumers who have no qualms about switching between service providers. A central characteristic of these lenders is low entry barriers and low levels of friction.

Since then other standalone digital banks, or challenger banks, have arrived on the scene, as well as neobanks – those that operate under the license of an existing player. And that's not to mention the myriad fintechs nibbling away at different points on the traditional banking value chain while constantly seeking new sources of revenue and market opportunities.

Coming to the country-wise scenario of challenger banks or neo banks in South America, Peru may get its first neobank by the end of this year (2020). Chile’s prepaid card market is also growing. Among the newcomers is the local unit of Peru-headquartered financial services giant Credicorp. A company known as B89 is looking to partner with a financial institution, as current regulations require a bank to have a physical presence. 

Scope of the Report

An understanding of the Challenger Banks in South America, regulatory environment, challengers banks and their business models, along with detailed market segmentation, product offerings such as deposits, loans to define their financial performance indicators, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments.

By Service Type
Savings Products
Current Account
Consumer Credit
By End-User Type
Business Segment
Personal Segment

Report scope can be customized per your requirements. Click here.

Key Market Trends

Fintech Start-Ups And Challenger banks Target Customer base in Colombia

Having a bank account and being able to withdraw or transfer money at any time is one of the things that people in developed countries take for granted, like clean water, electricity, or, to a lesser extent, internet access. In many regions of the world, however, access to basic financial services is anything but given with 1.7 billion people still “unbanked” in 2017 according to the World Bank.

Fintech Start-Ups And Challenger banks in Colombia have a target customer base classification in place and the share of firms having each of the following categories as their targeted category is as follows. 


Market Restraint: Brazil has been a less active customer base in banking space

In Brazil, there are 45 million unbanked people, that is, Brazilians who have not operated a bank account for more than six months or who have chosen not to have a bank account. 

86% of the unbanked are concentrated in economic classes C, D, and E, which is the least connected part of the population and with the most informal work. Of these, 49% are in the middle class (C). Of the 45 million unbanked, 58% have only elementary education or no education; 31% said they had received a loan and 45% reported having turned to family members and 25% to friends. Only 24% turned to banks or finance companies for financing or loans.


Competitive Landscape

The report includes an overview of challenger banks operating across the region. We wish to present detailed profiling of a few major companies which cover product offerings, regulations governing them, their headquarters and financial performance. Currently, some of the major players dominating the market are listed below.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Insights on Partnerships between Challenger Players And Other Fintechs

    3. 4.3 Latest Technologies Deployed by Challengers in Banking System

    4. 4.4 Performance Indicators of Challenger Banks

    5. 4.5 Industry Policies And Government Regulations

    6. 4.6 Market Drivers

    7. 4.7 Market Restraints

    8. 4.8 Value Chain / Supply Chain Analysis

    9. 4.9 Porters 5 Force Analysis

      1. 4.9.1 Threat of New Entrants

      2. 4.9.2 Bargaining Power of Buyers/Consumers

      3. 4.9.3 Bargaining Power of Suppliers

      4. 4.9.4 Threat of Substitute Products

      5. 4.9.5 Intensity of Competitive Rivalry

    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

      6. 5.1.6 Others

    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 BruBank*

    3. *List Not Exhaustive

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Challenger Banks in South America market is studied from 2016 - 2026.

The Challenger Banks in South America is growing at a CAGR of 12.5% over the next 5 years.

NU Bank, Uala, Albo, nequi, DaviPlata are the major companies operating in Challenger Banks in South America.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!