Latin America & the Caribbean
Opportunities for UK companies
Financial Services
From Asset Management to Fintech, these markets present a significant and developing opportunity for British business, with particular interest in technology and products that are new and innovative.
There is great interest in services that help productivity or advance local insurance or securities offers. Many of these gaps can be filled by UK companies whose experience is well recognised in the region.
Market Detail
Improvements in regulation in areas such as Asset Management and Financial Technology (FinTech) and an increased appetite for Green Finance continue, consequently opening up markets to overseas investment and international partnerships. The ongoing evolution is expected to result in more opportunities for UK companies. Latin America and the Caribbean’s financial markets are keen to see more international companies entering their markets with cutting-edge technology, providing new and more efficient solutions to local problems. And while there is a clear appetite in Latin America & the Caribbean markets for innovation in banking, there is also demand for quality services in insurance and in investment funds, as the local population tends to lack trust in local providers. Sizeable opportunities for UK companies have been identified in the region, particularly in Brazil, Colombia and Mexico.
The drive towards increased financial inclusion in the region has influenced regulatory initiatives over the last few years. For example, in Mexico, a FinTech law was passed in March 2018 to help address this issue[1]. Similar initiatives have been replicated throughout the region, where expertise in service improvement and digital transformation is in demand.
Opportunities for UK companies:
- Reinsurance: Lloyd’s is the second-largest player in Brazil; it is also a key player in Mexico. There is scope for more UK reinsurers to benefit from the regulatory changes underway.
- Green Finance: There are opportunities across LATAC for UK Investment Banks and Professional Services providers to advise and structure green bonds and regular issuances in the Capital Markets.
- FinTech: In Brazil, Colombia, and Mexico, Regulatory Sandboxes have been launched to encourage financial innovation. Brazil and Mexico are also now well into the development of their Open Banking regulatory initiatives, where the UK holds a strong competitive advantage.
- Asset Management: UK Asset Management capabilities are well recognised in the region. There is potential for these companies to grow business in a number of Latin American markets where provision is underdeveloped. Regulatory changes in some markets are set to increase the availability and risk appetite of assets available to invest abroad.
- In Colombia, there is increased openness in the financial market, and record profits for all financial institutions in 2019, are resulting in great opportunities within the sector, which is expected to continue growing in the upcoming years.
- In Mexico, a new reform to the Savings for Retirement System, is set to increase the country’s savings rate and capital market deepening.
For more advice and support on how to grow your business overseas, please visit: www.great.gov.uk
