The performance of fintech applications highlights Latin America as a key emerging player in the sector. However, factors such as inflation require adaptation strategies by fintech actors.
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According to the Mobile App Trends 2023 report published by Adjust, the analytics platform used by marketing specialists, fintech applications have continued to grow despite global economic challenges.
The study indicates that the installation of fintech apps globally increased by 2% in 2022 and showed a rebound at the beginning of 2023, climbing 6% compared to the previous year and 13% compared to the 2022 average.
“In the universe of different fintech applications, payment app installations accounted for 51%, banking services for 40%, cryptocurrencies for 6%, and stock trading for 3%,” Adjust notes.
Adjust
Latin America
The analytics firm highlights that in 2022, the largest growth in the number of sessions of fintech applications occurred in Latin America, with a 54% increase compared to the previous year. This growth was higher than the 40% in EMEA (Europe, the Middle East, and Africa) and 30% in the Asia-Pacific region.
These figures position the region as the second-highest consolidated growth record in app installations in this category, registering an increase of 8% in 2022 compared to the previous year, only behind EMEA, which grew by 10%.
The Adjust report emphasizes the use of finance applications and integrated platforms, digital transformation, and open banking services, maturing cryptocurrencies, and central bank digital currencies (CBDC), as well as loyalty programs.
Adjust
These data come at a time that seems decisive for the fintech market. The fall in cryptocurrencies and widespread uncertainty about a possible recession. Just last month, Bitcoin fell 12% and Ethereum 15%, the lowest price in just over a year.
As the Argentine newspaper Página 12 points out, the trigger for the crypto collapse is due to the massive sale by investors out of fear of inflation, as the Federal Reserve changed its monetary policy last May, abandoning the 0% rate and announcing a 1% increase, as a measure to counteract inflation – the highest in 40 years, due in part to the war in Ukraine.
Finally, the performance of fintech applications highlights Latin America as a key emerging player in the sector. However, uncertainty around economic factors such as inflation and cryptocurrency fluctuations requires careful observation and adaptation strategies by fintech actors.
Why is it relevant for fintech investment funds in LatAm?
The use of fintech applications denotes a clear demand in the sector, which would validate venture capital investments.
Latin America is becoming a key player; investing in a fintech would also help close the financial gap that exists, as according to the World Bank, 55% of adults in the region are unbanked.
In the face of uncertain regulation and a volatile market, investment strategies should consider these factors when investing, in addition to the aforementioned financial gap, distrust, and lack of access to technology in many countries of the continent are added. Therefore, funds could specifically bet on an SOFOM (Multiple Purpose Financial Society).
Why is it relevant for fintech startups in LatAm?
The numbers in Adjust’s report are positive; this implies expansion, partnerships, and growth, but at the same time, we must recognize that the speed at which the sector grows can generate long-term uncertainty in the face of the global economic crisis.
There is still a lack of a transparency system and more effective regulation for fintech in most Latin American countries.
