Securitization is a useful tool to deal with risk aversion for all players in capital markets. It’s the process of pooling various types of cash-flow generating assets, such as mortgages or loans, repackaging them and selling them as securities and, most importantly, offering different level of risk to buyers.
The ecosystem growing around sustainable funds offers a source of financing for companies in the region, which may help international and local investors to develop their own sustainability agenda with transactions classified as impact investments in their portfolios.
Open banking, allowing third-party service providers to access financial data from financial institutions through APIs, is growing rapidly thanks to secular global trends and the region’s thirst for innovation.
Reaping the rewards of e-commerce is a challenge for many MSMEs. The solution may lie in the so-called “digital credit” offered by fintech companies within commercial platforms that bypass traditional banks.
The digitization of financial cooperatives, a fundamental component of the financial sector in the region, is accelerating. There are numerous examples of progress, from Ecuador to Jamaica, that provide grounds for optimism.
So-called “patient” capital supports the expansion of mid-market enterprises, driving job creation and supporting modernization. It’s now becoming a fixture of private capital investment, which is soaring in the region as investors seek alternatives to the low returns typical of fixed-income assets.