We Are Innovation Report: Fintech in Chile
The report Fintech in Chile: How Innovation Democratizes Banking responds to the need to describe the characteristics, opportunities and challenges posed by the emergence of Fintech in Chile and analyze its impact on the Chilean financial sector.
The results obtained indicate a high implementation of these tools in the Chilean financial market, highlighting the opening of the financial sector to less formalized agents of the economy and its adaptation to the global environment of digitalization in various areas of social life, especially in the economic one.
Fintechs have emerged as a response to the need to digitize the financial sector and provide access to banking services more quickly and efficiently. These emerging companies present themselves as digital banking agencies, facilitating processes such as opening and closing accounts, making payments, transfers, currency exchange, loans, and managing business and personal finances, among other services.
Fintechs in Chile are experiencing a considerable incorporation into the market, boosted by the shortcomings of traditional financial services. Thus, the growth of Fintech startups has increased by 60%, with a predominance of the B2B business model that provides e-commerce solutions to unbanked and underbanked SMEs.
Regarding geographic distribution, Fintechs in Chile mainly favor the Santiago region, reflecting Chile’s economic geography. However, they also represent a source of regional-local development that can contribute to balancing the economic weighting of the regions.
This study represents the first step in the comprehensive investigation of Fintechs in Chile and Latin America. The conclusion highlights the need for further studies that can measure the volume, type and form of Fintech transactions in the country, assess the adequacy of existing legislation and characterize the profile of the users of these tools.
