What WealthTech trends stood out in H1 & Brazil dominates LATAM FinTech market

Top Story of the Week

What were the big WealthTech trends in H1 2024? - FinTech Global recently spoke to several leaders in the WealthTech space to highlight the WealthTech trends that stood out in the first half of 2024.?

Read the full story here.

Research highlight

Brazil cemented its place as a leader in the LATAM FinTech market with 44% of all deals

Key LATAM FinTech investment stats in H1 2024:

• LATAM deal activity for H1 2024 dropped by 58% in YoY comparison
• Brazil continued to dominate the LATAM FinTech market by securing 44% of the deals from the region for H1 2024
• Celcoin secured the biggest deal for H1 2024 in LATAM with a $125m funding round

In H1 2024, the LATAM FinTech industry experienced a notable decline in deal activity. The region recorded 79 funding rounds, a drop of 58% from the 189 deals completed in H1 2023. However, despite the drop in deal numbers, LATAM FinTech companies raised $1.2bn during the same period, a 20% increase from the $1bn raised in H1 2023. This growth in funding amid reduced deal activity suggests a trend toward larger, more concentrated investments within the sector.

Brazil remained the most active FinTech market in LATAM in terms of deals, with companies in the country completing 35 deals (44% share) in H1 2024. This represents a 59% decrease from the 85 deals recorded in H1 2023. Colombia emerged as the second most active market with 13 deals (16% share), slightly down from 23 deals in H1 2023 but surpassing Mexico, which completed 12 deals (15% share), a sharp 61% decrease from the 31 deals recorded in the same period last year. This shift in rankings highlights the consistent dominance of these three countries in the LATAM FinTech landscape, with Colombia overtaking Mexico in deal activity during H1 2024.

Celcoin, a leading company in the Banking as a Service (BaaS) financial technology market, secured the largest funding deal in Latin America for the first half of 2024 with a $125m investment led by global growth equity investor Summit Partners. Known for its partnerships with market-leading FinTech companies like EngageSmart and Corpay, Summit Partners was joined by existing investor Innova Capital and seasoned FinTech executive John Coughlin in this round. Founded in 2016, Celcoin provides financial infrastructure services for banks, FinTechs, and enterprises, focusing on payments, banking, and lending to enable personalized embedded finance solutions. With over 400 financial industry customers and more than 5,000 non-financial companies leveraging its offerings, Celcoin’s robust platform processes over 200m Pix transactions monthly. The new capital will support Celcoin’s expansion plans, further strengthening its leadership position in the BaaS and embedded finance markets, while driving continued innovation. The investment comes as Celcoin experiences strong momentum, recording $63m in annual recurring revenue in Q1 2024—a 140% increase year-over-year—alongside strategic acquisitions like Galax Pay, Flow Finance, Finansystech, and Reg+.

Weekly FinTech deal roundup

Almost $750m raised on solid week for FinTech funding – The FinTech sector celebrated a solid week of funding, as it secured almost $750m over the past seven days. Read the full story here.

InsurTech news

• The role of risk service plans in insurance - In today’s rapidly changing insurance sector, the focus on managing the human side of risk has never been more important. Insurance now extends beyond policies and claims—it is about fostering a culture of safety, building long-term trust, and enhancing collaboration between insurers and their clients. A well-structured service plan that tackles these human elements can create significant benefits for both insurers and insureds, leading to a win-win scenario. Read the full story here.
• How AI is transforming clinical trial communication - In clinical trials, where innovation often hinges on participant involvement, many studies are facing challenges in attracting and retaining enough participants. One key factor behind this difficulty is the trial’s communication process. The traditional methods often leave patients frustrated, causing dropout rates to soar. However, a shift is underway, driven by artificial intelligence (AI) and automation, as customer experience automation company Ushur explains. Read the full story here.
• Air Doctor expands leadership team with pair of new appointments - Air Doctor, a leading travel medical services platform, has expanded its leadership team with two new key appointments. Read the full story here.

WealthTech news

• Comun secures $21.5m in Series A to enhance banking solutions for immigrants - Comun, a New York-based neobank, has successfully raised $21.5m in its Series A funding round. Read the full story here.
• Propel rebrands app, receives $3.5m to modernise safety net technology - Propel, a consumer technology company focused on supporting low-income Americans, has secured a $3.5m grant from the Bill & Melinda Gates Foundation. Read the full story here.
• Intellect teams up with Wipro to elevate global banking technology using eMACH.ai - Intellect Design Arena has partnered with Wipro to harness the power of the eMACH.ai platform to deliver innovative IT solutions. Read the full story here.

RegTech news

• Looking to the future: What RelyComply’s rebrand means - RegTech company RelyComply recently underwent a rebrand. The firm looks to expand its reach and widen its footprint. What does the future spell out for the enterprise as it looks towards the horizon? Read the full story here.
• How recent fines shape future communication strategies in FinTech - The SEC and the CFTC have recently imposed fines totalling $477.75m on 26 broker-dealers and investment advisers for failing to comply with electronic communication recordkeeping requirements. This latest enforcement wave pushes the total fines levied for similar violations to over $3bn, underscoring the serious, ongoing issue of non-compliance within the industry. Read the full story here.
• Napier AI’s insights on enhancing financial crime compliance - The US Treasury’s recent initiative to solicit public insights on Artificial Intelligence (AI) in the financial sector underscores a pivotal moment for regulatory evolution. Read the full story here.

CyberTech news

• PrivacyHawk secures $3m boost to spearhead data protection innovation - PrivacyHawk, a consumer data protection firm, has announced a significant milestone, celebrating surpassing 1 million users in just two years of operation. Read the full story here.
• VIPRE Security and Schoox unite to boost enterprise cybersecurity training - VIPRE Security, a leading entity in advanced cybersecurity solutions, has joined forces with Schoox, a prominent provider of learning and talent development software. Read the full story here.
• Commvault strengthens cyber resilience with new partner integrations - Commvault, a prominent provider of cyber resilience and data protection solutions, has unveiled significant expansions to its cyber and data security ecosystem. Read the full story here.

ESG FinTech news

• Navigating the complexities of sustainability reporting: ISSB vs ESRS standards - The journey towards enhanced sustainability reporting has taken a significant step forward with the collaboration between the ISSB and the EFRAG. Read the full story here.
• Navigating CSRD compliance: The strategic role of IROs in sustainability reporting - The Corporate Sustainability Reporting Directive (CSRD) introduces rigorous frameworks for sustainability reporting, with key components like Impacts, Risks, and Opportunities (IROs) playing a pivotal role. Read the full story here.
• Mastering Scope 3 emissions: From measurement to reduction - Embarking on the journey to measure, manage, and report Scope 3 emissions can appear daunting. Read the full story here.

Other FinTech news

• What is the impact of AI on the financial services market? - As AI becomes an ever-more present part of the daily operations of financial services firms, many are asking the question: what impact will it have on the industry? Read the full story here.
• What ethical considerations should you think about when implementing AI solutions for data management? - As businesses increasingly turn to AI for streamlining data management, the ethical implications of these technologies demand serious consideration. From ensuring data privacy and security to addressing biases embedded within algorithms, companies must navigate a complex landscape of responsibilities. Read the full story here.
• Exploring the perpetual KYC model: Advantages and hurdles in crime prevention - In the financial sector, the introduction of perpetual Know Your Customer (pKYC) practices marks a significant pivot from traditional methods such as KYC. Read the full story here.