Interesting news regarding FinTech development in Latin America: regional fintech associations decided to unite together in order to create pan-regional FinTech Alliance, which already consists of associations of Central America and Caribbean, Colombia, Mexico, Panama, Peru, Uruguay, as well as Spain and Portugal from Europe. They are also in the process of making partnerships with other countries such as Argentina, Brazil and Chile.
Why this initiative is important? Mainly because it can be the first case when so-called “fintech associations”, which already exist in almost all countries worldwide, will deliver practical and socially significant results, not just marketing and PR as it happens across the world with most of such organizations. This Alliance has more resources and official status supported by different government bodies and Central Banks, that is why the influence can be much higher and the scope of work can be much broader.
The most anticipated influence of such Alliance can be an introduction of pan-regional FinTech regulation, which will unify regulatory environment for fintech start-ups across Latin America and they will have a chance to scale much easier and faster from one country to another. This is a unique opportunity to create a common FinTech market in the whole region with population of 650M+ people, most of whom are quite young (under 35 years) and unbanked/underserved (more than 50% don’t have a current account) .
Basically Latin America can become the leading FInTech region in the world, even surpassing SE Asia and Africa, if they will unite regulation and the new Alliance will become a main driver in this new FinTech environment.
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