“The regulatory environment has given confidence to the venture capital (VC) industry, which has been investing in fintech quite extensively over the past few years,” says Fermin Bueno, co-founder of Finnovista, an innovation and venture development firm that bridges the start-up ecosystem and the financial services industry.

He reports that fintech is the most active investment sector for VCs in Latam. “Between 25% and 27% of the $4bn of VC — early stage VC, not private equity — is invested in fintech,” he says. “So the fintech law in Mexico, for example, provides comfort to investors, as well as confidence to the population to trust these new players and neobanks.”