Catering to immigrants became a sizeable business for Latin American fintechs, a segment frequently overlooked by traditional institutions.
Fintechs in Mexico draw funding to cater to underbanked SMEs and individuals. Kapital tapped $65 million, while Stori secured $50 million.
In a region with high market volatility, some Latin Americans turn to developed economies to invest a part of their savings.
Fintechs in Mexico take on the challenge of competing with banks, in a country that lags most Latin American peers in financial inclusion.
Last year, 16 fintechs were authorized in Mexico. Among them, Albo, Belvo, Todito Pagos, Mercado Pago and Femsa's Spin by Oxxo.
Fintechs in Latin America market high-yield saving accounts to win customers off from traditional financial institutions.
In Latin America's highly concentrated banking industry, financial technology startups are venturing into one of the region's most undeveloped and tightly held loan markets: mortgage financing.
As fintechs gained traction in Argentina, financial access to accounts has become nearly universal, according to a central bank report.
US fintech giant Fiserv acquired Argentine digital wallet Yacare to ramp up its offering to clients and compete with Mercado Libre.
Five years since Mexico passed the fintech law, industry leaders call for an overhaul to the current regulation.