Latin America Neo Banking Industry Set for USD 334.01 Billion at Blistering 45.10% Annual Growth

Market Overview

The Latin America neo banking market reached a size of USD 11.72 Billion in 2024. Forecasts by IMARC Group project the market to surge to USD 334.01 Billion by 2033, growing at a robust CAGR of 45.10% during the forecast period 2025-2033. This rapid growth is driven by rising digital adoption, financial inclusion initiatives, and demand for user-friendly, cost-effective banking options. Neo banks are expanding services such as savings, loans, and digital payments, transforming the financial landscape in Latin America.

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Study Assumption Years
Base Year: 2024
Historical Year/Period: 2019-2024
Forecast Year/Period: 2025-2033

Latin America Neo Banking Market Key Takeaways

Current Market Size: USD 11.72 Billion in 2024
CAGR: 45.10% (2025-2033)
Forecast Period: 2025-2033
Digital-only neo banks are increasingly adopted due to cost-effectiveness and tailored services.
Internet penetration in Chile was 96.1% in 2024, driving digital banking adoption.
Digital payment solutions such as contactless payments and P2P transfers are expanding rapidly.
Brazil and Mexico lead the growth in digital payment ecosystems.
Neo banks facilitate cross-border e-commerce with low transaction fees and competitive exchange rates.

Market Growth Factors

The Latin American neo banking market is mainly propelled by the increasing adoption of digital-only banking services by consumers. Neo banks do not have a physical presence. They offer banking services at a lower cost with a personalized touch. In 2024, 96.1% of the population accesses the internet within Chile so people can access digital services and develop neo banks. A high rate of adoption of smartphones and a preference for 24/7 smooth services among banking customers have helped drive the unbanked and underbanked to use savings, lending, payments, and other such services, expanding financial inclusion in the region.

Apart from being customer-friendly, digital payment services also serve to ease and drive the growth of neo banks. Features like contactless, QR code, and peer to peer payments can support growth due to the burgeoning e-commerce and cashless economy. Brazil and Mexico have rapidly growing digital payments ecosystems, with 34% of Brazilian consumers expected to use digital wallets for online identity verification within the next three years, according to a report from a financial services and technology company on the digital payments ecosystem in Latin America.

Neo banks are also taking advantage of the boom in cross-border e-commerce by providing consumers and businesses with competitive FX rates and international remittance services. In doing so, they are creating new options for those making international payments as an alternative and trusted provider of the digital options increasingly required for their speed, security and flexibility. In this way, they are furthering financial inclusion in Latin America.

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Market Segmentation

Account Type:

Business Account: Covers banking services designed specifically for businesses, focusing on tailored financial solutions to support enterprise operations.
Savings Account: Includes personal banking services aimed at consumer savings, promoting financial growth and security.

Application:

Enterprises: Encompasses neo banking services targeted at business enterprises to streamline financial management and transactions.
Personal: Pertains to individual consumer neo banking offerings for managing personal finances.
Others: Includes all other applications outside of enterprises and personal use within the neo banking ecosystem.

Regional Insights

Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others constitute the key regional markets analyzed. The report does not specify a single dominant region by market share or CAGR but lists these countries as major markets. The regional analysis provides country-level forecasts from 2025 to 2033, highlighting Brazil and Mexico as notable for their digital payment ecosystem growth.

Recent Developments & News

In February 2025, Brazil's Pix announced the launch of Pix Automatico in June 2025, allowing 150 million users to automate recurring payments such as streaming and utility bills. This innovation is expected to unlock USD 30 Billion in e-commerce transactions and extend Pix's accessibility to the unbanked population.

In October 2024, Aleph acquired a controlling interest in Localpayment, a major payment service provider in Latin America. This acquisition merges digital advertising capabilities with local payment solutions, enabling Aleph to process billions in payments and operate across over 130 countries with more than 640 payment methods.

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Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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About Us

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

This release was published on openPR.