In March 2023, the International Monetary Fund (IMF) released a report titled The Rise and Impact of Fintech in Latin America and the Caribbean (“the Report” for short). In the past decade, fintech has shaken up the financial sector in Latin America providing innovations in lending, payments, insurance, and regulation and compliance. The Report examines this development by focusing on both fintech services and regulation. It finds that the thriving fintech sector in Latin America contributes to enhancing competition among commercial banks, increasing financial inclusion, and helping the region navigate the impacts of the COVID-19 pandemic. However, fintech also introduces risks related to financial stability, financial integrity, market integrity, cybersecurity, and data privacy in Latin America and the Caribbean. To prevent these potential risks, financial regulatory authorities have begun adopting fintech tools for management and have issued policies to support the development of fintech. The Beijing Frontier Institute of Regulation and Supervision Technology (FIRST) provides excerpts from the main content of the Report for reference.

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