Latin America is one of the regions with the lowest penetration of banking in society, and that is why fintech, especially neobanks, have been growing rapidly, with Brazil being the country that, due to the size of its market, shows Greater reach of technology when managing and preserving finances.
Brazil stands out in this scenario, where 98% of the users surveyed claimed to be a user of online banking and the apps of their banks. In turn, in Argentina, 96% of people say they take advantage of these services, showing that technology marks a turning point in banking.
Similarly, Brazil is by far the country in the region that stands out in the use of neobanks. Even Brazilians are the most willing to abandon traditional banking and choose 100% digital banks. At the opposite extreme are the Argentines, who only 34% would agree to leave their usual bank.
Although the survey responses show that Argentina is the market with the lowest penetration of neobanks, the fact that banked Argentines are digital users of their bank’s financial products could indicate that their resistance to the new proposals is more for a matter of loyalty to their banks.
For South America and the Caribbean, one of the challenges for this year is to deepen adoption and gain true know-how. In Argentina there is still no Open Banking regulation, however, one of the initiatives that emerges and exemplifies this model is the electronic wallet in which most traditional banks are conglomerated.