Many startups are focused on modernizing existing structures and improving productivity in areas ranging from fintech to online retail and real estate.
For example, in the banking sector, there are two areas that need to be improved: access to banking services is not universal, and there is a lack of innovative solutions. This is because traditional financial institutions have not previously faced competition, which means they have not had to constantly improve.
Brazil is already working hard in these areas. It is one of the most profitable countries in the banking sector, where banks offer regulatory support for customers, and fintech startups offer new ways of serving and advanced technologies.
However, e-commerce is seeing the highest growth rates. In particular, the coronavirus pandemic has contributed to this: in 2020, growth was about 8%, in 2021 – 19%, which is much higher than the GDP growth rates in Latin America. In online sales, local players such as MercadoLibre are leading.