Latin America has had quite a difficult economic period, across most of the economic sectors. However, in this period there have been some stories that have been greatly encouraging not only helping individuals and businesses survive this turbulent moment but also for a brighter future and a quicker economic recovery in Latin America that of course, is the revolution of financial technology or fintech, which represents an immense economic opportunity.
Its platforms facilitate massive access to financial services such as loans, bank accounts, means of payment, and others, attending to the needs of the people and bringing new opportunities to people who, otherwise, could not access them. The fact that indicates the huge success of fintech in Uruguay is that it’s the capital city, Montevideo is among the highest growing fintech cities worldwide. Therefore, Uruguay’s financial technology industry has attracted global attention.
Digitalization in Latin America
Stunning digitalization in Latin America has led people to access emergency social welfare programs provided by governments, but also access to a range of digital services.
The sudden success of financial technology, same as fintech in the Southern region, is a unique financial narrative and victory over the pandemic. Thousands of people in Uruguay have gained access to fintech tools and even more to banking services. After this change provincial and low-income people were introduced to e-commerce, had the chance of individual and business loans, and reached extended markets. It has also created possibilities for Latin American technology businesses. The region has become a home to financial technology firms. For instance, Sao Paulo-based Nubank, the world’s biggest standalone digital bank worth $25 billion, and moreover, Nasdaq-listed payments fintech StoneCo, valued at nearly $20 billion. They have succeeded by suggesting more affordable and simple options to common financial products, leading to millions of unbanked users.
The Success Story of Uruguay
The Uruguay market is one of the most advanced ones in the region, providing an ideal base for the progress of Fintec. The largest e-commerce platform of the region belongs to Uruguay, including other digital corporations of Latin America. The tycoons of the region are funding and operating in Uruguay. Actually, top executives of the most successful companies are living in the country. The most important streaming companies of the world, like Netflix, Amazon Studios, are all produced in Uruguay. They are producing dozens of films and tv series there.
Latin America has become an attractive place for forex brokers too, as they are looking for the next big market opportunities. Some of the countries in the region have already achieved success in forex trading, while other ones, like Uruguay, are the next best options for incoming brokers, including astropay forex brokers. The economic reforms carried out by the newly-elected government will additionally encourage the development of financial markets, which is an important step for the general progress of the country. Accordingly, active support of the government has increased the fintech activity in Uruguay.
There is also local success history of the tech company local, which was valued at fifteen billion dollars, which is most likely the best evidence of the rise of Latin American fintech and it is the most visible in Uruguay. There are 63 fintech enterprises in Uruguay, which makes it the leader of the region in nurturing technology start-ups. Drawn by convenient banking laws, an experienced workforce, and a difference of reasons, technology companies, including in fintech, have succeeded in Uruguay.
In general, fintech companies, despite having a robust scoring and risk assessment system, have more flexible requirements, which is why they reach segments of the population that otherwise would not be able to access to request financing or any related product. ” A person who never accessed a bank account through Al Prestamo can enter the financial system through a prepaid card, or consumer credit, for example,” explains Julián Sanclemente, CEO of the company. Fintech companies are great promoters of financial inclusion throughout the Latin American region.
Fintech companies were not born with the pandemic but they definitely grew up with it. And not only because the pandemic has been an opportunity for business growth, which it was. But also, because Fintech companies were able to respond to new needs by presenting people with fast and efficient solutions for managing their money.