Latin America’s financial technology (fintech) market is growing and companies like Germany-based Mambu are seeking a piece of the action.
Mambu is mainly targeting Brazil and Mexico, followed by Colombia and Argentina and to some extent Chile.
“There’s a lot of appetite for fintechs – there’s a positive wave of new technologies,” says Edgardo Torres-Caballero, Miami-based Managing Director for the Americas at Mambu.
The advantage companies like Mambu offer is that they can help a bank launch a greenfield digital operation in six months or less, Torres says.
In addition to big investments going into the sector, many of Mambu clients are going through first and second rounds of investments.
According to Statista, there will be more than $100 billion in fintech transactions this year in three Latin American markets alone -- Brazil, Mexico and Argentina.
Latin America accounts for a majority of fintech startups that were established between 2014 and 2016, according to data quoted by the Inter-American Development Bank (IDB).
There are more than 700 startups, both local- and foreign financed, with $186 million in venture capital investment, as of 2016, IDB says.
Of those 85 are foreign companies, according to Finnovista.
“Mexico, Brazil and Colombia position themselves as the main Latin American destinations for foreign Fintech startups mainly from Europe and the United States,” it says. “The segments of Payments and Remittances, Lending, Scoring, Identity and Fraud and Enterprise Technologies for Financial Institutions lead the offer of foreign Fintech in the region.”