Financial Crime World

CHILE’S FINTECH SECTOR SOARS AS REGIONAL HUB FOR INNOVATION

Growth of Fintech Sector in Chile

The Chilean fintech sector has experienced unprecedented growth in recent years, with over 150 companies operating in the country and nearly half of them expanding their operations into Latin America. This surge in popularity is driven primarily by consumer demand, particularly among the country’s large millennial population.

  • 60% increase in client base: According to a report by FinteChile and EY, 60% of fintechs in Chile have seen an increase in their client base.
  • 71% higher sales: 71% of fintech companies in Chile reported higher sales.
  • COVID-19 pandemic accelerates growth: The COVID-19 pandemic has further accelerated this trend, as consumers increasingly turn to digital finance solutions.

LATIN AMERICA’S FINTECH ECOSYSTEM THRIVES

The region’s fintech ecosystem has evolved significantly over the past three years, with a 112% increase in the number of fintech platforms. This growth is reflected in the fact that 23% of the world’s fintechs are based in Latin America and the Caribbean.

KEY PLAYERS IN CHILE’S FINTECH SECTOR

Some notable fintech companies operating in Chile include:

  • Xepelin: A platform created in Chile with a regional outlook.
  • Fintual: Secured $39 million in a series B funding round led by Sequoia Capital.
  • Tribal Credit, Jeeves, Clara, and Instacash Preauth: Foreign fintechs that have chosen Chile as a launchpad for their businesses.

CHILE’S FINTECH LAW: KEY POINTS

The implementation of Chile’s fintech law aims to:

  • Promote innovation: Promote the implementation of new technologies and innovation in the sector.
  • Improve financial conditions: Improve financial conditions for consumers.
  • Deliver legal certainty: Deliver legal certainty.
  • Democratize access: Democratize access to more personalized and lower-cost financial services.

These measures are expected to boost growth in the fintech industry in Chile, solidifying its position as a regional fintech innovation hub in Latin America.