South America Banking-as-a-Service (BaaS) Market: Industry Forecast (2024-2030)

South America Banking-as-a-Service (BaaS) Market Overview:

Banking as a Service, often known as BaaS, has grown in popularity as a result of the demand for convenient utilization of financial services within enterprises. BaaS is a means of offering value-added banking goods and services as APIs to parties interested in consuming them to achieve a specific goal. While BaaS began as a technique of integration, it has evolved into a monetization model for banks and autonomous technology platforms. BaaS allows third parties to connect to financial services providers' core systems via APIs to create a banking services architecture. The goal of BaaS is to combine third-party capabilities with financial services providers into a holistic procedure that allows a financial transaction to be completed quickly and efficiently. Third parties can utilize BaaS APIs to create their own banking solutions on top of the financial providers' regulated infrastructure.

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South America Banking-as-a-Service (BaaS) Market Dynamics:

BaaS usage has been growing during the past decade in South America, and it is expected to surpass 400 million users by 2021.

As of February 2021, the number of fintech startups in the American continent was anticipated to be around 10,900, approximately 85% more than the number of firms registered three years prior. South America was home to over 2,200 of these efforts, the majority of which focused on payment and remittances, as well as lending. New enterprises have lots of space to deliver financial solutions to a large unbanked, yet online, the population in an area with high active internet prevalence and many hurdles to financial inclusion.

Newer players are also benefiting from government assistance and fintech-friendly laws.

Brazil authorized its Open Banking initiative in 2019, and the first phase went online in early 2021; other nations, like Peru and Argentina, are following suit. Unsurprisingly, the financial startup and venture capital ecosystem are flourishing. Global investors are coming in to back the area's new triumphs, with about US$ 5.8 billion invested in 2021, up roughly 3 times from last year and 24 times from 2016. More than 1,570 fintech businesses are working in the region.

South America Banking-as-a-Service (BaaS) Market Segment Analysis:

By Service, the Fintech segment dominated the South American BaaS market in 2023 and it is expected to grow at a CAGR of 8.6% in the forecast period. Fintech use has risen steadily in South America over the last decade, with 400 million users predicted by 2027. Under the present global conditions, the demand for simple-to-use, digitally accessible, and dependable financial products has possibly never been greater. In 2023, digital payments were expected to be the most extensively utilized fintech category in the area, accounting for approximately nine out of ten consumers. Personal finance and banking, and additional financing are all present in South America's fintech solutions, albeit in lower quantities, with Nubank serving as a shining example. This Brazilian firm is the biggest online bank in South America, as well as one of the world's largest.

In Argentina, Ualá is a FinTech that is transforming personal finance with an app and a card. Pierpaolo Barbieri, an Argentine entrepreneur, founded and launched Ualá in October 2017 with the goal of increasing financial inclusion in Argentina by providing a unique, comprehensive, hassle-free, and reduced-cost experience. It is a personal finance smartphone app that allows users to execute financial transactions and is linked to a Mastercard prepaid card. Users may use the mobile application to do a number of financial operations, including money transfers, bill payments, loading prepaid phone balances, and SUBE transportation cards, among others. The software also includes an analytical feature that allows users to keep track of their costs. There are no costs for issuance, renewal, maintenance, or closing. In Argentina, FinTech has issued 2.47 million cards, which represents around 5.9% of the country's population.

South America Banking-as-a-Service (BaaS) Market Regional Insights:

The leading nations in South America by an overall number of fintech companies include Brazil, Mexico, and Argentina, which have some of the region's largest economies in terms of nominal GDP. Brazil and Mexico also account for the majority of fintech investments, with more than US$ 2.38 billion established in 2020. Nubank, RecargaPay, and Vórtx are three of the most lucrative fintech firms in Brazil, each getting over 33.5 million dollars in investment in the first quarter of 2021. In Mexico, the firms Konfo, Credijusto, and Clip are some of the firms that have been able to raise the most money during funding rounds, with each receiving at least US$ 95 million as of February 2021.

The purpose of this research is to provide stakeholders in the industry with a thorough insight into the South American Banking-as-a-Service (BaaS) Market. The study includes an analysis of difficult data in simple language, as well as the industry's historical and current state, as well as anticipated market size and trends. The market report examines all segments of the industry, with a focus on significant players such as market leaders, followers, and new entrants. The report includes a PORTER, PESTEL analysis as well as the possible influence of microeconomic market determinants. External and internal elements that are expected to have a favorable or negative impact on the firm have been examined, providing decision-makers with a clear future vision of the industry. The research also aids in comprehending the Banking-as-a-Service (BaaS) Market dynamics and structure by studying market segments and forecasting market size. The research is an investor's guide since it depicts the competitive analysis of major competitors in the South American Banking-as-a-Service (BaaS) Market by product, price, financial situation, product portfolio, growth plans, and geographical presence.

Breakthroughs in the South American BaaS industry are discussed, as well as organic and inorganic growth plans. Various companies are focusing on organic growth strategies such as new product releases, product approvals, and other items such as patents and events. Inorganic growth strategies used in the industry included acquisitions, partnerships, and collaborations.

South America Banking-as-a-Service (BaaS) Market Scope:

South America Banking-as-a-Service (BaaS) Market Players:

• Uala
• Nubank
• Neon
• Avanzo
• TerraMagna
• A55
• Sureti