More than fifty percent of the population in Latin America is currently unbanked. This is in stark contrast, however, to large portions of the population that although have no access to financial services have full access to cell phones and the mobile internet.
One of the key reasons many citizens in Latin America do not have a bank account is mostly due to the large informal working sector, where cash is still the main form of payment. Banks and other traditional well-established financial establishments rarely cater to this market segment.
This gap left by financial institutions, on the one hand, and the “digital infrastructure” provided by high internet and mobile penetration rates has left a lucrative market for fintech companies to target.
This MAV Analysis report takes a deeper look at Latin America’s Neobanks.