The Brazilian fintech company Nubank is now the largest neobank in the world, with 33 million customers and a $25 billion valuation. That valuation is already half that of Itau’s market cap, the largest public bank in Brazil, which has been around for more than 75 years.
As is often the case, growth appears gradual for a long while, then happens suddenly, seemingly all at once. Latin America is currently experiencing an explosion of fintech activity, and this is just the beginning. Here, we unpack the key market dynamics that make Latin America a promising place to start a fintech company, the tailwinds and headwinds in the region, and where we see opportunities for the next billion-dollar companies to emerge.