Sharp cost-cutting by Brazilian banks could drive price-based fintech models out of business. Lack of historical data and high customer acquisition costs puts fintechs at a disadvantage in comparison to banks and technology companies. Incorporating nonfinancial services is a way for fintechs to counterattack big techs’ foray into finance. Sergio Furio is the founder and…
Foreign investments have boosted a new phase of capital building across Latin America’s financial technology sector, but industry experts at a fintech conference in Miami this week caution that valuations are rising rapidly as the size of investment rounds grow larger. While traditional Latin American venture capital funds engage in investments that average between $4…
Shortly after primary election results catapulted Peronist presidential candidate Alberto Fernández to front-runner status, he promised bondholders that his government would not default on its debt, unlike prior administrations in his party. Bond markets don’t appear to be buying it. In the wake of the surprise primary result, investors halved the value of an array of…
As Brazilian regulators push to create an open banking system to help drive competition and convenience, some market experts are raising red flags on the cybersecurity challenges it will create for a financial industry already under siege. In April, Banco Central do Brasil laid out guidelines that effectively require financial institutions to share key client data…
Banco Central de la República Argentina is increasingly betting on private fintech initiatives to help foster financial inclusion in the country, though several barriers remain, according to a report obtained by S&P Global Market Intelligence. The institution noted there is “a strong potential for the emergence of relevant actors” in the digital transformation of banks…
MercadoPago CEO Osvaldo Giménez sees significant opportunities for electronic payments growth in Latin America, where about half of the population is underbanked. Giménez doesn’t believe that Mexico’s CoDi system is the best way of driving adoption. Latin American e-commerce giant MercadoLibre Inc. has been called the “Amazon.com Inc. of Latin America.” It is the region’s largest online commerce…