LATAM’s Digital Wealth Inflection Point

Why the Region Remains One of the Most Compelling Markets for Wealth Technology

By Jody Giraldo

Conversations around wealth have become unrecognizable in Latin America. When I pick up the phone to managers, it’s APIs – rather than arbitrage – that dominate conversations. This fintech-friendly public is ravenous for instant access to global investments online, starting with the iconic USA markets. It’s a region that’s hungry for seamless wealth management across multiple jurisdictions. It needs robo-advice. And it needed it yesterday.

A digital-first market with a roaring demand for wealth platforms

Latin America is bursting with youthful tech optimism. The average age of the region’s 670 million inhabitants is just 31 years old. This energetic population is busy making the continent seriously tech-savvy. Digital-first lifestyles are growing at breakneck speeds, accelerating through decades of change in just a couple of years. Almost two thirds (65%) of Latin Americans use smartphones with internet connectivity – around the same level as the USA in 2015, (where 67% owned a smartphone).

For now, Latin Americans may lag ten years behind their North American neighbors in smartphone adoption, but when it comes to e-banking most are further ahead. By May 2024, mobile-only Nubank already boasted more than 100 million account holders in Brazil, representing 57% of the adult population. By contrast, just three in ten (30%) US Americans have any sort of online-only bank at all. In the past five years, Latin Americans have developed a deep trust in financial technology as swathes opened their first ever bank accounts direct from their phones.

Now that Latin Americans have had a taste of mobile finance, they want more. Fearful of the region’s shaky inflation levels and political instability, retail investors are clamoring for internationally diversified portfolios, aligned to their risk tolerances. For the ordinary Joe Schmoe, the US markets finally feel in reach. Big names like Nvidia are just a few fingerprints away.

Young Latin Americans want long-term stability. But they also want to experiment with trading on the side. There’s a market itching to explore satellite portfolios and smaller trades… and waiting for the right platform to come along.

Extraordinary first-mover advantages await for the right firm

For wealth managers, this opens the door to a truly unique first-mover advantages. The question is, who can get there first?

As of July 2025, just 29 burgeoning robo-advisor platforms exist in the whole LATAM region, and all of them are start-ups at different points of their first funding rounds. The market is ripe for bold new entrants, especially from established international firms.

Those that gain a foothold now stand to become the default robo-advisor of the future. Becoming the Betterment, Wealthfront or Robinhood of this compelling continent is in grasp.

Strategic markets: Argentina, Brazil and Peru … in that order

For firms interested in seizing this once-in-a-lifetime opportunity, the most compelling countries right now are Argentina, Brazil and Peru (in that order).

Argentina is particularly attractive for its strong existing infrastructure and recent regulatory updates. Unlike some other LATAM countries, the fintech ecosystem is diverse, offering a burst of open finance opportunities across different online financial services. It has a strong smartphone adoption outlook, which is expected to balloon to 91% over the next five years.

Brazil flexes an even more impressive 88% smartphone adoption rate today, and almost all (95%) of these devices are 5G.  This makes it just 3% below USA smartphone adoption levels and shows no signs of slowing. The government has been hugely supportive of e-payments, sparked by the November 2020 central bank rollout of Pix.

Promising Peru is one of the best-positioned for firms to pick up early first mover advantages. Just two decades ago, most people lived below the poverty line but today it is fast-becoming upper-middle-income economy, with poverty rates falling 60%. While Peruvians start to enjoy newfound wealth, more than one in two (57%) still don’t have a bank account, leading to a natural interest in e-banking. Firms that can blend multiple financial services together in one seamless app stand to win the hearts and custom of this population.

Common traps and pitfalls to avoid

Having been in the industry for more than a quarter of a century, I’ve seen firms both succeed and fail in the LATAM region. In my experience, there are three golden rules which wealth managers must follow.

The first is trust-building. While offering global access, managers should ensure strong local connections. Trust is a scarce resource in LATAM, with less than one in three (30%) people having confidence in governmental bodies, and only one in six (15%) trusting other people. Gaining a foothold with established industry leaders is foundational for success. Latin Americans are nearly four times more likely to trust in local communities than people they don’t know (56% vs 15%).

Secondly, I’ve seen firms try and fail to adopt a cookie-cutter standard European or USA template in LATAM, which does not fly. Building a superior product here means starting from scratch with local market research and profoundly understanding the unique audience needs.

Finally, do not underestimate the vast tangle of local, national, regional and international regulations. Firms offering US investments across LATAM will need to strictly adhere to SEC rules – including sanctions screening, international laws and the unique requirements of individual countries. Brazil alone has three different regulatory bodies overseeing financial activity. What’s more, one asset like a US stock could have entirely different rules from another like crypto. It’s a headache of rules, but the firm that does it can win big.

A unique inflexion point in LATAM’s financial history

Onboarding is heart of most of my wealth management calls today. Local LATAM firms are hungrily looking for seamless ways to adhere to all the regulations, while also leveraging the vast opportunities of open finance. Connecting retail consumers to the dazzling US markets and beyond in a compliant way will transform the region. A world of financial inclusion, revenue generation and increased market liquidity awaits.  As we continue to pick up calls, take emails and build technology, it’s a truly exciting time to be working in LATAM.