In a recent Mastercard whitepaper, the company outlines how fintechs are increasing digital banking, improving economic access, and revolutionizing financial inclusion throughout Latin America.

Fintechs have been instrumental in increasing financial access throughout Latin America, according to a new Mastercard whitepaper titled The New Era of Financial Inclusion in Latin America. There are now over 3,000 fintech businesses spread across 26 nations in Latin America and the Caribbean, a 340% increase since 2017.

The research outlines the main advantages of digital financial services and is based on user surveys and interviews with fintech businesses. 72% of customers say they save time, 59% say their financial planning is better, and 53% say they have easier access to financing. With 35% of low-income people having accounts with digital banks compared to 28% of high-income users, digital banks have had a particularly significant influence.

Despite these advancements, cash is still widely used, especially by low-income people, 40% of whom still pay for more than half of their monthly costs with cash. In response, 80–90% of fintech companies are using easily accessible digital solutions to advance financial equality. Fintechs have made it possible for people in nations like Brazil (58%), Colombia (52%), and Peru (55%), to access financial goods that were previously out of reach.

The rise of the internet, government assistance, and easily navigable financial instruments has all contributed to this change. Furthermore, by tackling security issues through training programs, fintechs are enabling low-income and younger groups to interact with digital banking with confidence.

Latin America is positioned for even greater economic inclusion in the years to come as fintech innovation continues to transform the financial sector.