IDEAS home Printed from https://ideas.repec.org/b/bis/bisbps/112.html
   My bibliography  Save this book

The dawn of fintech in Latin America: landscape, prospects and challenges

Author

Listed:
  • Bank for International Settlements

Abstract

Fintech in Latin America is greeting the dawn. We take stock of how it is transforming financial services in the region. First, we describe the fintech landscape in terms of investment, firms and services provided. We find that fintech has quickly gained traction in Latin America, mainly in the areas of payments and alternative finance. Second, we evaluate the prospects for fintech by exploring the institutional framework to supervise and regulate it. We show that fintech regulation in the region takes an activity-based approach rather than an entity-based one, except in Mexico. Finally, we present the challenges that fintech faces in becoming a game changer for the region. We conclude that fintech can be a strong catalyst to improve financial and social conditions in Latin America by incorporating the unbanked into the financial system and providing alternative sources of finance to firms.

Suggested Citation

  • Bank for International Settlements, 2020. "The dawn of fintech in Latin America: landscape, prospects and challenges," BIS Papers, Bank for International Settlements, number 112.
    • Handle: RePEc:bis:bisbps:112
    as

    Download full text from publisher

    File URL: http://www.bis.org/publ/bppdf/bispap112.pdf
    File Function: Full PDF document
    Download Restriction: no
    File URL: http://www.bis.org/publ/bppdf/bispap112.htm
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stijn Claessens & Jon Frost & Grant Turner & Feng Zhu, 2018. "Fintech credit markets around the world: size, drivers and policy issues," BIS Quarterly Review, Bank for International Settlements, September.
    2. Charles I. Jones & Christopher Tonetti, 2020. "Nonrivalry and the Economics of Data," American Economic Review, American Economic Association, vol. 110(9), pages 2819-2858, September.
    3. Iván Abarca, 2018. "Desarrollo del Crowdfunding en Chile," Working Papers Central Bank of Chile 815, Central Bank of Chile.
    4. Arango-Arango, Carlos A. & Suárez-Ariza, Nicolás, 2020. "Digital payments adoption and the demand for cash: New international evidence," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 14(4), pages 392-410, December.
    5. Carlos Cantú & Gong Cheng & Sebastian Doerr & Jon Frost & Leonardo Gambacorta, 2020. "On health and privacy: technology to combat the pandemic," BIS Bulletins 17, Bank for International Settlements.
    6. Giulio Cornelli & Jon Frost & Leonardo Gambacorta & Raghavendra Rau & Robert Wardrop & Tania Ziegler, 2020. "Fintech and big tech credit: a new database," BIS Working Papers 887, Bank for International Settlements.
    7. Gambacorta, Leonardo & Huang, Yiping & Qiu, Han & Wang, Jingyi, 2024. "How do machine learning and non-traditional data affect credit scoring? New evidence from a Chinese fintech firm," Journal of Financial Stability, Elsevier, vol. 73(C).
    8. Meyer Aaron & Francisco Rivadeneyra & Samantha Sohal, 2017. "Fintech: Is This Time Different? A Framework for Assessing Risks and Opportunities for Central Banks," Discussion Papers 17-10, Bank of Canada.
    9. Jon Frost, 2020. "The economic forces driving FinTech adoption across countries," Working Papers 663, DNB.
    10. Cebreros Alfonso & Heffner-Rodríguez Aldo & Livas René & Puggioni Daniela, 2020. "Automation Technologies and Employment at Risk: The Case of Mexico," Working Papers 2020-04, Banco de México.
    11. Derryl D'Silva & Zuzana Filkova & Frank Packer & Siddharth Tiwari, 2019. "The design of digital financial infrastructure: lessons from India," BIS Papers, Bank for International Settlements, number 106.
    12. Beuermann, Diether W., 2011. "Telecommunications Technologies, Agricultural Profitability, and Child Labor in Rural Peru," Working Papers 2011-002, Banco Central de Reserva del Perú.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carlos León, 2021. "The dawn of a mobile payment scheme: The case of Movii," Borradores de Economia 1157, Banco de la Republica de Colombia.
    2. Batiz-Lazo, Bernardo & González-Correa, Ignacio, 2021. "Start-ups, Gender Disparities, and the Fintech Revolution in Latin America," MPRA Paper 109373, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Xiaoting & Hou, Siyuan & Kyaw, Khine & Xue, Xupeng & Liu, Xueqin, 2023. "Exploring the determinants of Fintech Credit: A comprehensive analysis," Economic Modelling, Elsevier, vol. 126(C).
    2. Tobias Berg & Andreas Fuster & Manju Puri, 2022. "FinTech Lending," Annual Review of Financial Economics, Annual Reviews, vol. 14(1), pages 187-207, November.
    3. Carletti, Elena & Claessens, Stijn & Fatás, Antonio & Vives, Xavier (ed.), 2020. "Barcelona Report 2 - The Bank Business Model in the Post-Covid-19 World," Vox eBooks, Centre for Economic Policy Research, number p329.
    4. Eccles, Peter & Grout, Paul & Siciliani, Paolo & Zalewska, Anna, 2021. "The impact of machine learning and big data on credit markets," Bank of England working papers 930, Bank of England.
    5. Lei Lu & Jianxing Wei & Weixing Wu & Yi Zhou, 2023. "Pricing strategies in BigTech lending: Evidence from China," Financial Management, Financial Management Association International, vol. 52(2), pages 333-374, June.
    6. Koranteng, Barbara & You, Kefei, 2024. "Fintech and financial stability: Evidence from spatial analysis for 25 countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 93(C).
    7. Oskar Kowalewski & Pawel Pisany & Emil Slazak, 2021. "What determines cross-country differences in fintech and bigtech credit markets?," Working Papers 2021-ACF-02, IESEG School of Management.
    8. Cecchetti, Stephen & Schoenholtz, Kermit L., 2020. "Finance and Technology: What is changing and what is not," CEPR Discussion Papers 15352, C.E.P.R. Discussion Papers.
    9. Adugna, Hailu, 2024. "Fintech dividend: How would digital financial services impact income inequality across countries?," Technology in Society, Elsevier, vol. 77(C).
    10. Kowalewski, Oskar & Pisany, Paweł & Ślązak, Emil, 2022. "Digitalization and data, institutional quality and culture as drivers of technology-based credit providers," Journal of Economics and Business, Elsevier, vol. 121(C).
    11. Kyung Yoon Kwon & Philip Molyneux & Livia Pancotto & Alessio Reghezza, 2024. "Banks and FinTech Acquisitions," Journal of Financial Services Research, Springer;Western Finance Association, vol. 65(1), pages 41-75, February.
    12. Bianchi, Milo & Bouvard, Matthieu & Gomes, Renato & Rhodes, Andrew & Shreeti, Vatsala, 2023. "Mobile payments and interoperability: Insights from the academic literature," Information Economics and Policy, Elsevier, vol. 65(C).
    13. Kowalewski, Oskar & Pisany, Paweł, 2022. "Banks' consumer lending reaction to fintech and bigtech credit emergence in the context of soft versus hard credit information processing," International Review of Financial Analysis, Elsevier, vol. 81(C).
    14. Fred Huibers, 2021. "Regulatory Response to the Rise of Fintech Credit in The Netherlands," JRFM, MDPI, vol. 14(8), pages 1-12, August.
    15. Cornelli, Giulio & De Fiore, Fiorella & Gambacorta, Leonardo & Manea, Cristina, 2024. "Fintech vs bank credit: How do they react to monetary policy?," Economics Letters, Elsevier, vol. 234(C).
    16. Giulio Cornelli & Jon Frost & Leonardo Gambacorta & Raghavendra Rau & Robert Wardrop & Tania Ziegler, 2021. "Fintech and Big Tech Credit: What Explains the Rise of Digital Lending?," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 22(02), pages 30-34, March.
    17. Boot, Arnoud & Hoffmann, Peter & Laeven, Luc & Ratnovski, Lev, 2021. "Fintech: what’s old, what’s new?," Journal of Financial Stability, Elsevier, vol. 53(C).
    18. Cuadros-Solas, Pedro J. & Cubillas, Elena & Salvador, Carlos, 2023. "Does alternative digital lending affect bank performance? Cross-country and bank-level evidence," International Review of Financial Analysis, Elsevier, vol. 90(C).
    19. Lyons, Angela C. & Kass-Hanna, Josephine & Fava, Ana, 2022. "Fintech development and savings, borrowing, and remittances: A comparative study of emerging economies," Emerging Markets Review, Elsevier, vol. 51(PA).
    20. Julio R. Hernáez & Alejandra Bernad & Laura Hierro & Ana M. Gómez-Bezares, 2022. "Reflections on the future business model of European banks and the supervisory approach," Financial Stability Review, Banco de España, issue Spring.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bis:bisbps:112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martin Fessler (email available below). General contact details of provider: https://edirc.repec.org/data/bisssch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.