Fintech drives financial inclusion in Latin America
Demographics and technology are creating new markets for financial services in population segments long ignored by traditional banks. The region is seeing a feeding frenzy in fintech startups – and the banks are responding with a new strategy: get ready to meet ‘co-opetition’.
If you shop online in Mexico today, chances are that when you go to the checkout there will be a box that says Kueski Pay – a buy-now-pay-later service that is enabling even customers without a bank account to purchase goods over the internet. In doing so, it is expanding e-commerce services to segments of the population that were previously excluded from making digital payments while also giving them access to legitimate sources of credit.
Kueski is one of hundreds of fintech startups in Latin America that are using technology to provide financial services to previously underserved or entirely unbanked segments of the population. According to venture development firm Finnovista, 36% of fintech startups in the region offer products that are targeted towards people who are totally or partially excluded from the financial system.
The app, Kueski Pay, enables customers to make purchases with more than 2,000 online retailers and 700 stores in Mexico, including brands such as Mobo, Calvin Klein and budget airline Viva Aerobus.