He fintech ecosystem Argentina continues to offer signs of growth and is adapting to changes in the country’s macroeconomic conditions. Currently It has 383 companies40 of which are startups that joined in the last year.
According to the results of the survey called Finnovista Fintech Radar Argentina 2024the Argentine fintech ecosystem recorded a growth rate of 11.7% compared to last year. At the same time, the compound annual growth rate since 2020 is 15.3%.
The vertical of Payments and Remittances It remains at the top of the podium by number of companies since it has 62 startups. It follows Loans with 60 companies. Further back are the solutions to operate with cryptocurrencieswhich are also growing at a good pace.
Furthermore, the study highlights that there is a very low number of departures of the local ecosystem: only 6.7% of the companies present in 2023 closed operations, transitioned to another business model or were acquired by another company.
On this point, Andres FontaoCEO of Finnosummit and co-founder of Finnovista, explained: “Although one of the biggest problems mentioned by Argentine fintech companies is the lack of capitalonly 3.2% of those that were operating last year announced a total closure or no longer have their functional product on the web.”
And he added: “What’s more, it seems that The country’s great economic challenges have driven fintech companies to create new products and continue to innovate to offer solutions that help shape Argentina’s financial future.”
For its part, Gerardo AguzziLatam VP of Delivery & Customer Success at Galileo reinforced that approach: “The growth of the Argentine fintech ecosystem, despite the economic shock of recent monthssend a clear signal. “It is time for banks, fintechs and non-financial players to respond to this trend and join the transformation that is shaping the future of financial transactions in the country.”
Fintech companies diversify their proposals to adapt to new demands
According to the new edition of Radar, Argentina has one of the most diversified fintech ecosystems on the continentstanding out in payment solutions, financial services for your business fabric and loans and credits.
“The local ecosystem is growing at a sustained rate and shows sophistication in the product offering to satisfy an increasingly demanding consumer,” the report highlights.
In addition to the Payments and Loans sectors, the increase in crypto solutions stands out in fifth position by number of startups, which recorded a growth of 20% in just one yeargoing from 20 to 36 local enterprises.
Exchange restrictions and other problems related to access to foreign currency in Argentina, far from being an inconvenience for the fintech ecosystem, are an element that favors its development. Even in the midst of a regulatory transition, companies continue to increase their product offerings, taking advantage of these conditions to grow.
In fact, Argentina already It is the second country in Latin America with the highest number of crypto projects after Brazil. In total, Argentina has 49 ventures between locals and foreigners.
In relation to the country’s regulatory framework, the Finnovista Fintech Radar shows that the perception of fintech companies regarding local regulation improved compared to the previous edition.
The average score was 6.2 points; This is half a point higher than that perceived in 2023 (5.7), although fintech companies consider that there is still a long way to go, according to the results of the survey.
Presence of foreign startups in the Argentine fintech market
20.9% of fintech companies with operations in Argentina are of foreign originwhich represents 101 ventures and a total of 484 ventures in the country.
Foreign fintech companies in Argentina come from more than 21 different countries, mainly from Chile, the United States, Mexico and Colombia.
This trend has been growing, since in the previous edition of the Finnovista Fintech Radar 2023, 67 foreign fintech projects operating in the country had been identified, which represents an increase of more than 50% year-on-year.
In this framework, Argentine fintech companies estimate that they will be able to achieve higher income in the coming years due to accelerated digitalization, the demand for more agile and accessible financial solutions. They also mention as a positive factor the growing collaboration between fintech and traditional players.
In this sense, the Crypto, Lending, Payments & Remittances and Technological infrastructure for banks and Fintech segments are those that foresee a greater increase in their income.
In the coming years, these areas will stand out for their strong expansion, with companies hoping to quickly scale to higher income ranges, especially in the range of US$15-50 million and above, as detailed by the Radar.
The adoption of key technologies is also on the rise and reinforces the aforementioned trends, with booming technologies such as Open Finance and APIS for interoperability, the use of digital wallets, biometrics for user accessibility and convenience, and crypto adoption.
In the case of virtual wallets, an increase of 12.5 percentage points is observed compared to 2023. This phenomenon is promoting collaboration in the sector, because more and more transversal products are found, the report concludes.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
