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1/ Really excited to announce a brand new post on the Latin American Fintech Boom 
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💥" title="Symbol für eine Kollision" aria-label="Emoji: Symbol für eine Kollision">
@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://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten"> https://a16z.com/2021/04/13/latin-america-fintech/">https://a16z.com/2021/04/1...
@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?
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 (https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇧🇷" title="Flagge von Brasilien" aria-label="Emoji: Flagge von Brasilien"> & https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇲🇽" title="Flagge von Mexiko" aria-label="Emoji: Flagge von Mexiko">) alone are larger than the https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇺🇸" title="Flagge der Vereinigten Staaten" aria-label="Emoji: Flagge der Vereinigten Staaten"> market. It& #39;s a huge TAM!
There are over 650M people; the 2 largest countries (
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
Thehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👉" title="Rückhand Zeigefinger nach rechts" aria-label="Emoji: Rückhand Zeigefinger nach rechts">: The Latin American consumer is extremely underserved https://abs.twimg.com/emoji/v2/... draggable="false" alt="😬" title="Grimasse schneidendes Gesicht" aria-label="Emoji: Grimasse schneidendes Gesicht">
The
: The Latin American consumer is extremely underserved https://abs.twimg.com/emoji/v2/... draggable="false" alt="😬" title="Grimasse schneidendes Gesicht" aria-label="Emoji: Grimasse schneidendes Gesicht">" title="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 countriesThe https://abs.twimg.com/emoji/v2/... draggable="false" alt="👉" title="Rückhand Zeigefinger nach rechts" aria-label="Emoji: Rückhand Zeigefinger nach rechts">: The Latin American consumer is extremely underserved https://abs.twimg.com/emoji/v2/... draggable="false" alt="😬" title="Grimasse schneidendes Gesicht" aria-label="Emoji: Grimasse schneidendes Gesicht">" class="img-responsive" style="max-width:100%;"/>
4/ Why are they so underserved? Here& #39;s another good https://abs.twimg.com/emoji/v2/... draggable="false" alt="📊" title="Balkendiagramm" aria-label="Emoji: Balkendiagramm">! 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 ruleshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🙅♂️" title="Mann gestikuliert „Nicht OK“" aria-label="Emoji: Mann gestikuliert „Nicht OK“">
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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙅♂️" title="Mann gestikuliert „Nicht OK“" aria-label="Emoji: Mann gestikuliert „Nicht OK“">" title="4/ Why are they so underserved? Here& #39;s another good https://abs.twimg.com/emoji/v2/... draggable="false" alt="📊" title="Balkendiagramm" aria-label="Emoji: Balkendiagramm">! 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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙅♂️" title="Mann gestikuliert „Nicht OK“" aria-label="Emoji: Mann gestikuliert „Nicht OK“">" class="img-responsive" style="max-width:100%;"/>
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. Inhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🇲🇽" title="Flagge von Mexiko" aria-label="Emoji: Flagge von Mexiko"> over 68% have a https://abs.twimg.com/emoji/v2/... draggable="false" alt="📱" title="Mobiltelefon" aria-label="Emoji: Mobiltelefon">
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
Distribution for financial services is getting easier and more accessible
6/ The infrastructure in LATAM also allow for more interesting products to be launched
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇧🇷" title="Flagge von Brasilien" aria-label="Emoji: Flagge von Brasilien"> recently launched instant payments through PIX and https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇲🇽" title="Flagge von Mexiko" aria-label="Emoji: Flagge von Mexiko"> has had it for years through SPEI
By contrast - in thehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🇺🇸" title="Flagge der Vereinigten Staaten" aria-label="Emoji: Flagge der Vereinigten Staaten"> we still have to wait ~3 days for a transfer (still waiting for #FedNow)
By contrast - in the
7/ COVID in many ways has https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> 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
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏬" title="Kaufhaus" aria-label="Emoji: Kaufhaus"> & https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧑🤝🧑" title="Leute halten Händchen" aria-label="Emoji: Leute halten Händchen"> need to face the new reality by adopting technology + financial services to operate in this new https://abs.twimg.com/emoji/v2/... draggable="false" alt="🗺️" title="Weltkarte" aria-label="Emoji: Weltkarte">
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 inclusionhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👏" title="Applaus-Zeichen" aria-label="Emoji: Applaus-Zeichen">
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 boardhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🏂" title="Snowboarder" aria-label="Emoji: Snowboarder">
In longer form: Full-stack players + the underlyinghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="⚒️" title="Hammer und Spitzhacke" aria-label="Emoji: Hammer und Spitzhacke"> + business services + real estate - just to start! https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙂" title="Leicht lächelndes Gesicht" aria-label="Emoji: Leicht lächelndes Gesicht">
The short version: There needs innovation & disruption across the board
In longer form: Full-stack players + the underlying
10/ Full-Stack players is one of the largest & most exciting opportunities
We& #39;ve seen companies like @nubank, @uala & @cuenca_mx tackle banking by offering consumers betterhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="💳" title="Kreditkarte" aria-label="Emoji: Kreditkarte"> & bank accounts
For scale - @nubank is already the largest neobank in the world (ahead ofhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🇺🇸" title="Flagge der Vereinigten Staaten" aria-label="Emoji: Flagge der Vereinigten Staaten"> startups)
We& #39;ve seen companies like @nubank, @uala & @cuenca_mx tackle banking by offering consumers better
For scale - @nubank is already the largest neobank in the world (ahead of
11/ While neobanks have taken most of the headlines & seen the most progress we& #39;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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇺🇸" title="Flagge der Vereinigten Staaten" aria-label="Emoji: Flagge der Vereinigten Staaten"> and it& #39;s also one that is important in LATAM
Companies like @joinbelvo are following in @Plaid& #39;s footstep and opening up banking datahttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🔓" title="Offenes Schloss" aria-label="Emoji: Offenes Schloss">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🗃️" title="Karteikarten-Kästchen" aria-label="Emoji: Karteikarten-Kästchen">
Others like @truora & @getmati are helping tackle KYC & fraud
The buildinghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🧱" title="Bricks" aria-label="Emoji: Bricks"> are needed!
Companies like @joinbelvo are following in @Plaid& #39;s footstep and opening up banking data
Others like @truora & @getmati are helping tackle KYC & fraud
The building
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 payrollhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="💼" title="Aktenkoffer" aria-label="Emoji: Aktenkoffer">
@jeeves_inc & @OysterMx are attacking B2B Bankinghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🏦" title="Bank" aria-label="Emoji: Bank">
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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="⏲️" title="Tischuhr" aria-label="Emoji: Tischuhr">. In https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇲🇽" title="Flagge von Mexiko" aria-label="Emoji: Flagge von Mexiko"> just 10% of GDP is mortgage lending
@loft_br, @quintoandar, @LaHausCom are changing the game with renting & owninghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🏠" title="Haus" aria-label="Emoji: Haus">
@hellocasai is disputinghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="✈️" title="Flugzeug" aria-label="Emoji: Flugzeug"> & short term rentals
Startups will disrupt the RE markethttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🎯" title="Volltreffer" aria-label="Emoji: Volltreffer">
@loft_br, @quintoandar, @LaHausCom are changing the game with renting & owning
@hellocasai is disputing
Startups 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& #39;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">https://twitter.com/matt_haf/...
We& #39;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">https://twitter.com/matt_haf/...
16/ A huge thank you to everyone that& #39;s been incredibly helpful with their time, insights, and support as we have grown to understand and invest in the region https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙏" title="Gefaltete Hände" aria-label="Emoji: Gefaltete Hände">
LATAM fintech is onhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> and the disruption of financial services in the region is just getting started https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎊" title="Konfettiball" aria-label="Emoji: Konfettiball">
LATAM fintech is on
