On September 11, news broke that Goldman Sachs led an investment of approximately USD 22.5 million in Brazilian fintech company iugu. What was it that caught the eye of the global investment bank? Unlike other fintech companies in the region, the payment platform iugu automates many of the processes that collection departments would normally do, such as tracking accounts and invoices. Iugu brings to its customers an added value that competing payment providers are currently overlooking.

Fintech has been on the rise in Latin America for the past decade, especially in Brazil, given the limited access many have to bank accounts. With a swelling middle class, a decrease in the prices of smartphones and wider internet access, fintech platforms have become a viable financing option for many. Investment banks, unsurprisingly, are very aware of this.

Goldman Sach’s report published in 2017 highlights the huge potential of the industry in Brazil, hinting this may not be the last significant investment that the bank makes.