Fintech in Latin America and the Caribbean: Stocktaking

Abstract

In Latin America and the Caribbean (LAC), financial technology has been growing rapidly and is on the agenda of many policy makers. Fintech provides opportunities to deepen financial development, competition, innovation, and inclusion in the region but also creates new and only partially understood risks to consumers and the financial system. This paper documents the evolution of fintech in LAC. In particular, the paper focuses on financial development, fintech landscape for domestic and cross border payments and alternative financing, cybersecurity, financial integrity and stability risks, regulatory responses, and considerations for central bank digital currencies.

Keywords: Central banks, Central bank role, Central bank legislation, Central bank accounting, Bank credit, Fintech, cross border payments, financial sector, financial regulation, financial stability and integrity, cyber risk, cyber regulation, monetary policy, digital currencies, competition., cybersecurity, remittance, alternative finance, financial development, CFT

JEL Classification: G00, G10, G18, G20, G23, G28, E42, E5, H2, H20, G2