Read on Twitter
1/ Really excited to announce a brand new post on the Latin American Fintech Boom 
@astrange and I have been spending time in the region developing relationships, supporting founders, and investing in companies
So why are we @a16z so excited?
https://a16z.com/2021/04/13/latin-america-fintech/
@astrange and I have been spending time in the region developing relationships, supporting founders, and investing in companies
So why are we @a16z so excited?
https://a16z.com/2021/04/13/latin-america-fintech/
2/ Latin America represents a huge opportunity for fintechs to build better financial products. In many ways we see LATAM where the US was 10+ years ago..
There are over 650M people; the 2 largest countries (
& 
) alone are larger than the 
market. It's a huge TAM!
There are over 650M people; the 2 largest countries (
& ) alone are larger than the market. It's a huge TAM!
3/ To give you a good overview - this table gives shows you where some of the large inefficiencies exist in LATAM and how penetrated financial services are across the top countries
The
: The Latin American consumer is extremely underserved 
The
: The Latin American consumer is extremely underserved
4/ Why are they so underserved? Here's another good 
! In Mexico - there are only 51 banks & they have some of the highest ROEs of any countries (ie. very profitable)
Brazil top 5 banks are 80%+ concentrated and have some of the most stringent underwriting rules
! In Mexico - there are only 51 banks & they have some of the highest ROEs of any countries (ie. very profitable)Brazil top 5 banks are 80%+ concentrated and have some of the most stringent underwriting rules
5/ Technology is also rapidly changing and for the better
The region hosts a young & growing middle class who are connected to the internet at higher rates than ever before. In over 68% have a 
Distribution for financial services is getting easier and more accessible
The region hosts a young & growing middle class who are connected to the internet at higher rates than ever before. In
over 68% have a Distribution for financial services is getting easier and more accessible
6/ The infrastructure in LATAM also allow for more interesting products to be launched
recently launched instant payments through PIX and has had it for years through SPEI
By contrast - in the we still have to wait ~3 days for a transfer (still waiting for #FedNow)
recently launched instant payments through PIX and has had it for years through SPEIBy contrast - in the
we still have to wait ~3 days for a transfer (still waiting for #FedNow)
7/ COVID in many ways has 
what has been going on for the last few years. For a region so badly affected by COVID the silver lining may be faster financial inclusion
& 
need to face the new reality by adopting technology + financial services to operate in this new 
what has been going on for the last few years. For a region so badly affected by COVID the silver lining may be faster financial inclusion & need to face the new reality by adopting technology + financial services to operate in this new
8/ And finally regulation has turned pro-fintech & pro-innovation in unprecedented & historical ways
Mexico passed the "Fintech Law" encouraging more fintech adoption, more bank competition, and more innovation to promote faster financial inclusion
Mexico passed the "Fintech Law" encouraging more fintech adoption, more bank competition, and more innovation to promote faster financial inclusion
9/ So where can founders and fintechs build and what are the most exciting opportunities?
The short version: There needs innovation & disruption across the board
In longer form: Full-stack players + the underlying
+ business services + real estate - just to start! 
The short version: There needs innovation & disruption across the board
In longer form: Full-stack players + the underlying
+ business services + real estate - just to start!
10/ Full-Stack players is one of the largest & most exciting opportunities
We've seen companies like @nubank, @uala & @cuenca_mx tackle banking by offering consumers better
& bank accounts
For scale - @nubank is already the largest neobank in the world (ahead of startups)
We've seen companies like @nubank, @uala & @cuenca_mx tackle banking by offering consumers better
& bank accountsFor scale - @nubank is already the largest neobank in the world (ahead of
startups)
11/ While neobanks have taken most of the headlines & seen the most progress we're also excited about opportunities in insurance, investing, and lending to name a few
Across the board startups have the ability to revolutionize all parts of traditional financial services in LATAM
Across the board startups have the ability to revolutionize all parts of traditional financial services in LATAM
12/ We love the infrastructure plays in the and it's also one that is important in LATAM
Companies like @joinbelvo are following in @Plaid's footstep and opening up banking data
Others like @truora & @getmati are helping tackle KYC & fraud
The building
are needed!
and it's also one that is important in LATAMCompanies like @joinbelvo are following in @Plaid's footstep and opening up banking data
Others like @truora & @getmati are helping tackle KYC & fraud
The building
are needed!
13/ Business services is an area ripe for disruption. As more founders & startups launch in LATAM there is a need for local solutions
@RunaHr & @WorkyMX are attacking payroll
@jeeves_inc & @OysterMx are attacking B2B Banking
These startups will increasingly matter + scale
@RunaHr & @WorkyMX are attacking payroll
@jeeves_inc & @OysterMx are attacking B2B Banking
These startups will increasingly matter + scale
14/ Finally real-estate is still under-penetrated & stuck in 
. In just 10% of GDP is mortgage lending
@loft_br, @quintoandar, @LaHausCom are changing the game with renting & owning
@hellocasai is disputing
& short term rentals
Startups will disrupt the RE market
. In just 10% of GDP is mortgage lending@loft_br, @quintoandar, @LaHausCom are changing the game with renting & owning
@hellocasai is disputing
& short term rentalsStartups will disrupt the RE market
15/ These are just some ex of the innovation in the region and the opportunities that fintechs can tackle!
We're incredibly excited to continue supporting the next generation of LATAM founders and investing in the region!
Back to the first tweet & post: https://twitter.com/matt_haf/status/1381995742953238531
We're incredibly excited to continue supporting the next generation of LATAM founders and investing in the region!
Back to the first tweet & post: https://twitter.com/matt_haf/status/1381995742953238531
16/ A huge thank you to everyone that's been incredibly helpful with their time, insights, and support as we have grown to understand and invest in the region 
LATAM fintech is on
and the disruption of financial services in the region is just getting started 
LATAM fintech is on
and the disruption of financial services in the region is just getting started
