Walker Guidance

Let’s dive into the thrilling world of doing fintech business in Latin America. First, the money side: In 2023, remittances from the U.S. to Latin America and the Caribbean hit a staggering $155 billion—that’s 9.5% growth from the last year. Mexico cashed in big, snagging about 41% of that sum. Strong U.S. employment, wage growth, and the rise of slick digital payment platforms made sending money easier (and more cost-efficient) than ever. Central America saw remittances soar by 13.2%, while the Caribbean and South America enjoyed moderate gains.

Now, geography time! There are 33 countries in Latin America, from Mexico all the way down to Argentina and everything in between—including parts of the Caribbean. Each of these countries comes with its own bureaucratic jungle of regulations, meaning fintech companies need to navigate 33 different governments.

Culturally speaking, Colombia, Ecuador, Panama, and Venezuela share similarities—but, hold on, their laws? They’re as different as night and day. To make it more interesting, each country has its own subcultures. Dealing with someone in the Andes region is not the same as dealing with someone from the coast. Good luck figuring that out in business meetings!

In the fintech world, regulations are key, and each country comes with its own levels of supervision. For example, in Mexico, companies might be “registered,” “supervised,” or even “authorized to hold funds.” These distinctions determine how involved the government will be in overseeing your operations—think audits, reporting, and compliance demands.

Latin America’s banking infrastructure is still developing, which makes fintech an attractive option for financial inclusion—especially for lower-income populations. Governments, in their quest to modernize, have created frameworks allowing new players to shake things up. However, the big banks aren’t going down without a fight. They’ve managed to maintain a strong grip on some aspects of the market, leaving fintechs to find their niche in areas like low-value payment systems (e.g., everyday payments like utilities or retail purchases).

For a closer look at how fintech regulations vary across countries, here’s a handy table with links to the financial regulators in each nation:

Stay tuned! I’ll be rolling out individual posts for each country, diving deeper into their fintech landscapes.