On a recent trip to New York, Investment Manager Cathal Carroll and Principal Evin McKay attended Bank of America’s Latin America Private Tech Trailblazers Summit. They met with portfolio companies, investors and analysts to assess the latest trends shaping the ecosystem. Their conversations pointed to a market where capital remains selective, AI adoption is accelerating, and a new generation of fintech leaders is beginning to emerge.
What stood out most during your conversations in New York?
One of the clearest themes was the pace at which AI is being adopted across the LatAm fintech ecosystem. Companies are embedding AI across lending decisions, customer service, internal operations and broader efficiency initiatives. Particularly in small-business and consumer lending, AI-driven decision-making is improving productivity and operational scalability. Among VEF portfolio companies, Creditas continues to stand out as a leader in implementation, with strong momentum building around its AI strategy.
What kinds of companies are gaining the most momentum in LatAm fintech?
Beyond the established consumer fintech names, a new generation of high-growth companies is emerging across payments, business software and embedded financial services. Many are already operating at scale, with improving profitability and clear paths toward sustainable growth. What feels different today is the breadth of the ecosystem. LatAm fintech is no longer driven solely by the first wave of consumer-focused companies, but increasingly by infrastructure and enterprise-focused businesses shaping the region’s next phase of growth.
How would you describe investor sentiment toward LatAm fintech today?
Investor sentiment feels constructive, but significantly more selective than in previous years. Across venture and growth investors, capital is increasingly concentrated around a relatively small group of breakout companies demonstrating strong execution, real scale and clearer paths toward future liquidity events. Funding remains available for high-quality businesses, but expectations around profitability, operational discipline and long-term sustainability have clearly increased. Investors are still willing to pay premiums for the strongest companies, though the bar is meaningfully higher.
How are public market investors viewing LatAm fintech?
Discussions with analysts and public market investors revealed increasingly divergent views on the listed LatAm fintech names. Brazilian fintechs continue to demonstrate strong growth, albeit with views diverging on credit quality trends and on the long-term payback from investment in new growth areas. Public markets remain supportive of quality businesses — with the bar now set higher on profitability, efficiency and execution.