In recent years the fintech industry has maintained a significant growth rate in our region and it has even doubled in size in three years in Latin America and the Caribbean, according to a study published by the Inter-American Development Bank.

The number of fintech platforms reached 2,482 in 2021, a growth of 112 per cent from 2018 to 2021. Nearly a quarter of fintech platforms globally (22.6 per cent) are Latin American and Caribbean.

Like all industries, the novel coronavirus pandemic has had an impact on the fintech industry in the Caribbean, but the truth is that has also prompted the digitalisation of numerous activities and sped up the adoption and consolidation of digital finance from fintech platforms in the region to meet the demands and needs of financial consumers.

This is something very important to highlight, considering the great potential that exists in the region. The Caribbean is comprised of more than 26 countries with a total population of 40 million habitants that speak several different languages, and that is why there has been an increase in collaboration between financial platforms and institutions and the growth and internationalisation of digital banks, which are beginning to complement each other because this is about “fintegration”, not a zero-sum game.

For example, with Citi Ventures our mission is to champion what is next by bringing the outside in, building capabilities, and delivering thought leadership. We conceive launches and scale new initiatives with the potential to transform the future of financial services, invest in start-ups, pilot new technologies, and test new solutions and business models through our Citi Innovation Labs and Citi businesses. Our goal is to accelerate product road maps and expedite commercialisation opportunities within Citi.

On the institutional side, we know technology is critically important to our strategy, both as a means of deepening our client relationships and becoming more efficient. That is why we have an industry-leading digital banking platform and we are constantly seeking ways to digitise everything from onboarding to self-service execution and analytics.

And at the Citi level, we are investing in cloud development to enhance storage and network capabilities and process automation to improve efficiency, to name just a few examples, while also continuing to enhance our cyber information security infrastructure in an increasing and constantly changing threat environment.

We see the region as a big market with a great future and with the right technology, infrastructure, and close collaborations between fintechs and financial institutions, we are very confident that it will grow and promote an ecosystem where fintech would be able to realise their potential and help to close the financial inclusion gaps suffered by both companies and individuals in Latin America and the Caribbean. And at Citi, we are prepared for this new era of smart business with innovative solutions and help our region to take it to the next level.

Marcelo Gorrini is Caribbean and Central America cluster head and Panama Citi country officer.