In Latin America, there are several apps that are revolutionizing the world of personal financesBanks and fintechs have been developing smartphone platforms for some time now, with the aim of reaching the unbanked sector in the region. The pandemic accelerated this process and, over the last two years, millions of people began using these types of digital solutions. 

“The informality that many Latin American countries have has led to the widespread use of digital solutions for personal finances,” he explains. Fredy León, Director of Research and Digital Development at Seguros SURA. And he adds: “This has meant that anyone, without the need to be banked, can make virtual transactions. During this process, more attention is being paid to the Gig Economy, related to freelancers, the small economy or very specific services that can be managed digitally.”

The SURA expert indicates that “during the pandemic, this became widespread due to the lack of P2P contact during quarantines.” “You could no longer work with paper money and only transactions were possible financial applications”, Leon recalls.  

Figures on financial apps in Latin America

 According to a report carried out by Adjust, a company that measures app data, the use of financial applications in Latin America increased by 128% during 2021. “The trend indicates that the market in the region is driving growth in all fintech categories, above other regions. This represents great opportunities for companies in the sector and in terms of advertising,” highlights Jesús Juárez, Country Manager of Adjust for Mexico and Spanish-speaking countries. 

In that line, 7 Bridges, a company dedicated to data extraction and machine learning, adds that “Latin America has 1.075 companies that have received investments in three major categories: payments, loans and digital banks.” “Almost 50% of the adult population in the region does not have access to a financial product or service. Companies are seeking to provide a solution to this situation and that is why, during 2021, investment in the region reached 9.800 billion dollars. This represented an increase of more than 200% compared to the previous year,” the company adds. 

Finally, León comments that “financial apps will gain more market share in the future.” “They are making investments to offer services that do not require a fee to download or use,” says the SURA expert. He concludes: “This is because data, which all apps ask permission to read and use, is more important. Millions of people in the informal economy making transactions allow us to know how that economy moves. It allows us to acquire the necessary data to develop predictive models that help strengthen the financial industry. Therefore, it will be easier and easier to access and there will be more benefits.”

Five apps that are revolutionizing the world of personal finance in Latin America

nequi 

One of the Latin American apps for personal finances that León highlights is the Colombian Nequi. “It is a non-banking application that only requires a cell phone number to start using it. From that point on, the number becomes the user’s account,” explains the SURA expert. “Many apps made this popular, because they pay through them and you don’t need to be banked,” he continues. 

One of Nequi's most notable advances is giving people the option of using ATMs without having to use a bank account. "Without the need for a card, a person can go to the network's ATM, enter their phone number, receive a code on their smartphone that changes every 30 seconds, and withdraw money or make payments," says León. 

On the other hand, the platform offers financial tools. An example of this is that any user can create automatic savings goals that help them achieve what they want. In addition, there are options to organize money and store it safely. 

Mercado Pago 

Mercado Pago was born in Argentina as a development of Mercado Libre. However, it currently operates in several Latin countries such as Brazil, Mexico, Uruguay, Colombia, Chile and Peru. “In terms of development, it is an app in which the architecture was very well worked out so that third parties can connect to the platform and make payments. It is very good,” analyses the director of research and digital development at Seguros SURA.

For him, “one of the things that complicates SMEs the most is how to enter a transaction network without it costing a lot of money.” “This happens because they don’t sell cars or houses but services or simple goods of little value. Mercado Pago did well because it doesn’t require a huge technological infrastructure to be part of it and the fee they charge is small. In some way, it is the app that has gained the most traction in the region,” says León. 

In addition to transactions, the app offers various financial savings tools. Many users use it to generate income. Another attraction is that there are no dates to withdraw the money, as there is a fixed period. The user can finish this process whenever they want and have their money available to use. 

Yes 

Teip is an app created in El Salvador that defines itself “as a digital platform that aims to facilitate access to financial services that create value for people and SMEs in Central America.” “70% of people in the country are completely unbanked. The remaining 30% are demanding new digital experiences to manage their finances easily. And 90% of companies in El Salvador are SMEs, which need digital tools to operate efficiently and grow their business,” explain its creators. 

Collecting and paying through QR codes, managing payments from social media profiles, detailing all transactions updated in real time, controlling sales, discounts and promotions, and offering multi-payments to make collaborative payments faster are some of the financial tools that Teip offers. For all this, it was highlighted by Latam Fintech Hub as one of the most innovative applications that entered the financial ecosystem in Latin America in 2022.  

Synapse

Originating in Brazil, Sinapse is an app designed to be a complete and automated solution for the financial management of SMEs. “We build financially intelligent companies,” say its creators. “We know that financial management can make or break your company. Using cutting-edge technology, the power of data, and a network of selected partners, we have empowered small and medium-sized businesses, at any stage of their journey, through complete financial solutions,” they continue. 

The platform's services and tools include: a team of experts and technology designed to manage the financial routine, an exclusive methodology and automation to ensure the success of each process, daily cashier updates, and accounting monitoring to generate reports with daily updates directly on the platform.

Financial Woman

Mujer Financiera is a startup that emerged in Argentina in 2019. The platform's goal is to create a space for financial education for women. By early 2022, the app had already been downloaded more than 100 times and more than 60.000 women had been trained. In addition, the community of active users was around 27.000. 

This app, which can be accessed throughout the region, aims to train and educate both companies and individuals about finances. As for individuals, there are courses to learn how to create budgets, organize finances, generate extra income, make simple investments and create a plan to get out of debt. 

There is currently a Mujer Financiera app where you can enter information about income, expenses, savings and credit cards. With all this data, weekly and monthly reports are generated to make better financial decisions. Finally, there is also exclusive content and master classes designed to delve deeper into the opportunities offered by the market to make your money go further. 

One of SURA's objectives is to accompany and support users during this digitalization process. Through virtual coverage and tools, people can find support while boosting their finances. In addition, the company has specialized personnel to answer any questions or queries that may arise.