Market Size of Challenger Banks In South America
| 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
*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.
