Market Trends of Latin America Banking As A Service Industry
Rise in Latin America Fintech Funding as a Driver
A portion of the world long dominated by incumbent banks and other established service providers, Fintech has emerged as a fast-track path to provide traditional and highly sophisticated services to a largely underbanked or unbanked population. The number of Fintech platforms in Latin America and the Caribbean has grown rapidly, jumping from 1166 in past years to 2482 currently. Investment in Fintech platforms increased significantly to over USD 2.3 billion in the recent year.
The Increasing Digital Banking Adoption in Latin America is Driving the Market
The use of BaaS platforms in large organizations segment is more than in small and medium-sized enterprises. It accounts for more than 50% market share in Latin America. It is expected to continue its domination as it increases its customer base by investing in digital transformation to offer tech-savvy banking operations. The demand for BaaS platforms in the large enterprise segment is anticipated to be driven by organizations' growing inclination for reliable service platforms and automation capabilities.
