Finance 3.0: The Rise of Digital Lending in Latin America

Crypto lending is on the rise in Latin America as more people are looking for ways to sustain a living in the unstable economy. Download this report for an in-depth look at the challenges faced by traditional lending solutions in LATAM, and learn how industry leaders are harnessing blockchain and crypto solutions to get ahead of the curve.

This report is for general information purposes only. It does not constitute legal, financial, or other professional advice, and should not be relied upon as such. IOV Labs Ltd. accepts no responsibility for any loss or damage that may arise from reliance on information contained in this publication. Readers should seek independent professional advice before making any investment or financial decisions based on the information contained in this publication.

Key Challenges

Latin American consumers are more likely to take loans from non-traditional financial institutions such as family and friends instead of banks.

Hurdled innovation: Despite the substantial funding ($3.3 billion) fuelling fintechs in LATAM, the regions still struggles with insufficient regulatory sandboxes to enable testing of innovative fintech technologies or products that tackle everyday problems like hyperinflation.

Informal dollarization: Restrictions on buying foreign currencies in many Latin American countries drive people in need towards the black market, where the exchange prices are volatile during high demand times.

Report Insights

DeFi lending has become one of the top 3 use cases of crypto in Latin America.

Crypto loan interest rates are ±6% lower than traditional loans, attracting lower income communities.

Businesses basing their solutions on blockchain technologies are able to offer a wide spectrum of inclusive, accessible, and faster lending solutions.

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