Fintech’s boom in Latin America in 2025

While global fintech investment continues to contract, Latin America’s Fintech 2025 is emerging as a bright spot in an otherwise cautious market. According to a new report by Boston Consulting Group (BCG) and QED Investors, venture capital funding for fintech startups in the region grew by 86% in 2024, marking one of the top three years in the sector’s history.

Latin America takes the lead in global fintech growth

In sharp contrast to declining investment elsewhere, fintech startups in Latin America recorded a 37% year-over-year revenue increase, outperforming even the U.S., where growth reached 22%, according to Gonzalo Troncoso, Partner and Managing Director at BCG. Globally, the fintech sector reached $378 billion in revenue, growing at a pace far above traditional banking.

The growth isn’t just quantitative, it’s structural. High-performing business models include acquiring and vertical SaaS, digital banks, crypto platforms, and buy-now-pay-later (BNPL) solutions. These companies are shifting from “growth at all costs” to a more sustainable focus on profitability. As a result, public fintechs saw their average EBITDA margin rise from 12% in 2023 to 16% in 2024.

AI, tokenization, and regulation shape a new financial landscape

Artificial intelligence has become a foundational technology for the fintech sector. BCG notes that generative AI tools and virtual assistants are streamlining product development, accelerating go-to-market strategies, and enabling resource-constrained founders to launch MVPs in a matter of days.

At the same time, on-chain finance is gaining traction. The use of stablecoins and tokenization of illiquid assets such as real estate, bonds, and private credit is expanding the boundaries of fintech innovation. These shifts are reinforced by more mature regulatory frameworks, including the UK’s BNPL approach and Open Banking initiatives across key markets.

Challenges remain — but so does the opportunity

Despite the strong momentum, fintechs still only control about 3% of global banking and insurance revenue, the report warns. Moreover, 61% of the sector’s global revenue is currently concentrated in companies earning over $500 million annually, revealing significant whitespace, particularly in areas like financial infrastructure and B2B lending.

Still, the outlook is optimistic. Latin America is home to over 2,200 fintech startups, and continues to attract capital and talent. This "fintech spring" is laying the foundation for a more inclusive, tech-driven financial ecosystem in the region.

Five trends shaping the future of fintech

According to BCG and QED, five key forces will define the evolution of the industry:

1. AI consolidation as a driver of productivity.
2. On-chain finance expansion through regulatory clarity.
3. Sustained profitability among product-focused digital banks.
4. A $280B fintech lending opportunity, supported by private credit.
5. Emerging fintech leadership in B2B, lending, and infrastructure tech.

“The fintech spring is underway,” concludes Gonzalo Troncoso. “Latin America isn’t just attracting investment,  it’s proving it can scale sustainably, with innovation and real impact in the financial system.”