Latin America Is Ready for a Retail Investor BoomBy Sergio Jiménez | Mon, 12/20/2021 - 09:09
Latin America is ready for a retail investor boom, thanks to innovation and disruption in the industry, along with the population’s understanding of their financial needs.
Flink, our financial platform, is a good example of this. Less than a year after providing Mexicans with access to the New York Stock Exchange, to invest in fractional shares, we have over 1 million active clients, 85 percent of whom made their first-ever investment with us.
Developing this market depends on providing millions of people with improved financial tools to generate more value for their money, and by boosting financial inclusion and education to build better economic futures.
Contrary to what some might think, Latin Americans are ready to be investors. They are enthusiastic and curious about the new financial products now within reach, and they understand the value of investing, instead of just spending their money.
For decades, the perception of investing in the stock market was seen as elitist, and only accessible to millionaires or financial scholars. This perception has been changing in recent years thanks to innovation, the development of ad-hoc products, and collaboration between financial platforms and the authorities. An ecosystem is being created that is bringing opportunities to millions of people.
These changes did not happen magically. They took years of research, testing and overcoming challenges. The importance of rebuilding the financial sector to serve the vast majority of people is becoming ever more apparent.
Other factors have also been taken into account to promote the elimination of barriers to entry that have existed for years in order to achieve true financial inclusion.
A key component is the creation of tailor-made products and services that take into account the needs of the bulk of the population to offer them flexible, secure, transparent, innovative, intuitive and inclusive products.
Likewise, these financial products must be accompanied by education, because, as the old saying goes, if you teach a man to fish you feed him for a lifetime. In addition to opening access to new financial products, we are working to develop other accessible technological tools to encourage financial education and culture.
Flink and other financial platforms have been working hand in hand with the authorities to create solutions that strengthen product security. Thanks to this approach, and our joint collaboration, an ecosystem is being formed to offer solid financial products.
Therefore, if we take into account all the elements mentioned above, Latin America will become a region that is ready for investors. All of the factors that favor market development are coming together to generate a robust financial environment. The winners will be the people of Latin America.