Fintech trends in the Caribbean and Citi’s role

Almost a quarter of fintech platforms globally (22.6 percent) are Latin American and Caribbean.

IN in recent years, the fintech industry has maintained significant growth in our region, and it has even doubled in size in three years in Latin America and the Caribbean, according to a study published by the Inter-American Development Bank.

The number of fintech platforms reached 2,482 in 2021, a growth of 112 percent from 2018 to 2021. Almost a quarter of fintech platforms globally (22.6 percent) are Latin American and Caribbean.

Like all industries, the new coronavirus pandemic has had an impact on the fintech industry in the Caribbean, but the truth is that it has also led to the digitization of a number of activities and accelerated the adoption and consolidation of digital finance from fintech platforms in the region to meet the demands and needs to financial consumers.

This is something very important to highlight, considering the great potential that exists in the region. The Caribbean consists of more than 26 countries with a total population of 40 million inhabitants who speak several different languages, which is why there has been an increase in cooperation between financial platforms and institutions and the growth and internationalization of digital banks, which are beginning to complement each other because this is about “fine integration”, not a zero-sum game.

For example, with Citi Ventures, our mission is to champion what’s next by bringing the outside in, building capabilities and delivering thought leadership. We envision launches and scale new initiatives with the potential to transform the future of financial services, invest in startups, pilot new technologies and test new solutions and business models through our Citi Innovation Labs and Citi businesses. Our goal is to accelerate product roadmaps and accelerate commercialization opportunities within Citi.

On the institutional side, we know that technology is critically important to our strategy, both as a means of deepening our customer relationships and becoming more efficient. That is why we have an industry-leading digital banking platform and we are constantly looking for ways to digitize everything from onboarding to self-service execution and analytics.

And at the Citi level, we are investing in cloud development to improve storage and network capabilities and process automation to improve efficiency, to name a few examples, while continuing to improve our cyber information security infrastructure in a growing and ever-changing threat environment.

We see the region as a big market with a big future and with the right technology, infrastructure and close cooperation between fintechs and financial institutions, we are very sure that it will grow and foster an ecosystem where fintech will be able to realize its potential. and help close the financial inclusion gaps suffered by both companies and individuals in Latin America and the Caribbean. And at Citi, we’re prepared for this new era of smart business with innovative solutions and helping our region take it to the next level.

Marcelo Gorrini is cluster manager in the Caribbean and Central America and country officer at Panama Citi.