Latin America and the Caribbean region are experiencing a transformative wave as green fintech is surging – marking a new era of economic prosperity, Forbes reports. More than just a financial or technological revolution, this rising trend means the region and its residents can cope better amid a looming climate crisis.
According to a market analysis recently published by the Inter-American Development Bank, IDB Invest, and Finnovista, the Caribbean and Latin America have marked impressive growth in the fintech industry of 112% between 2018 and 2021.
As traditional banking is not as accessible in the Caribbean, “fintech holds promise like never before,” Forbes said, adding that this transition not only means more stability but also inclusion and sustainability in an age of uncertainty.
“The fusion of finance, sustainability, and technology presents an exciting synergy for the region. Through green fintech, the region can tackle critical challenges by boosting financial inclusion, stimulating market growth, facilitating intra-regional trade and collaboration, and introducing innovative financing options for both public and private sectors. This paves the way for sustainable and inclusive economic growth,” said Alfonso García Mora, VP at International Financial Corporation (IFC) of the World Bank for the regions of Europe, Latin America, and the Caribbean.
Financial experts also note that this tech boom in Latin America and the Caribbean can help the region curb food uncertainty, something the UN says the region struggles with.
A 2023 United Nations report, Regional Overview of Food Security and Nutrition 2023, states that 6.5% of the population of Latin America and the Caribbean suffers from hunger, or 43.2 million people.
Through its support of digital markets, data-driven decision-making, supply chain transparency, financial inclusion, and climate resilience finance, fintech can completely transform the Caribbean’s economic environment.
Latin America and the Caribbean can solve the twin issues of food hunger and climate vulnerability by combining economic growth with sustainability via the use of technology and innovation.
