Fintech in Brazil - statistics & facts
The fintech sector in Latin America has experienced significant growth in recent years, driven by technological advancements and increasing demand for digital financial services. This booming industry saw the number of fintech businesses in Latin America grow sharply in recent years, now boasting over 3,000 fintech companies, reflecting the region’s rapid adoption of innovative financial solutions. Brazil stands out as the leading fintech hub in Latin America. Not only does it boast the highest number of fintech companies in the region, but it is also home to Nubank, one of the most prominent fintechs globally.
Nubank has set a benchmark for digital banking innovation with its user-friendly approach and wide-ranging services, making significant strides in transforming how people manage their finances. Nubank’s net income experienced a remarkable growth in 2023, and its rapidly growing customer base now exceeds 93 million people.
While the global slowdown in fintech investment has impacted Brazil’s once-accelerating sector, the resilience of its leading companies, particularly Nubank, underscores the enduring potential of the industry. Despite a notable drop in investment levels, the continued expansion and adaptation of digital financial services in Brazil highlight a sector that, while facing challenges, remains a pivotal force in reshaping financial landscapes.
Nubank has set a benchmark for digital banking innovation with its user-friendly approach and wide-ranging services, making significant strides in transforming how people manage their finances. Nubank’s net income experienced a remarkable growth in 2023, and its rapidly growing customer base now exceeds 93 million people.
The rise of online and mobile banking
Online and mobile banking have emerged as major segments within Brazil’s fintech sector, reflecting a broader shift towards digital financial services. Online banking penetration in Brazil has increased significantly in recent years, and it is forecast to increase even further in the following years. In terms of demographics, the 25-34 age group is the most active in terms of online financial activities. This demographic’s preference for digital convenience has driven a notable uptick in the adoption of online banking services. Consequently, the number of mobile banking app downloads has risen sharply. Among the most downloaded and widely used banking apps are Nubank, PicPay, FGTS, and Caixa, which have become essential tools for millions of Brazilians managing their finances.Cooling investment landscape
Global fintech investment activity slowed down quite notably in 2023, and Brazil wasn't an exception either. While some of the most well-funded fintechs managed to raise over one billion U.S. dollars, the value of VC investment was the lowest since 2018. This downward trend is reflective of the global stage, where both the value and number of investments decreased by over 40 percent. Despite these challenges, Brazil's fintech sector continues to show resilience, with leading companies still attracting significant funding and driving innovation in the industry.While the global slowdown in fintech investment has impacted Brazil’s once-accelerating sector, the resilience of its leading companies, particularly Nubank, underscores the enduring potential of the industry. Despite a notable drop in investment levels, the continued expansion and adaptation of digital financial services in Brazil highlight a sector that, while facing challenges, remains a pivotal force in reshaping financial landscapes.
