- Cryptocurrencies, blockchain, and real-time payments are considered the main innovations impacting the business ecosystem
Amidst current economic challenges, Latin America and the Caribbean stand out as leaders in resilience and innovation.
A new report from Visa reveals that Artificial Intelligence (AI) and Open Finance are the cornerstones inspiring major companies in the region to redefine their operations over the next two years.
Visa’s Innovation Index, based on research conducted among 122 leading companies in 10 markets in the region, highlights that 75% of the surveyed companies believe that AI and Open Finance/Banking will transform their businesses within a two-year timeframe.
These technologies, along with cryptocurrencies, blockchain, and real-time payments, are considered the key innovations that will impact the business ecosystem in Latin America and the Caribbean in the next 7 years.
Romina Seltzer, Senior Vice President and Leader of Products and Innovation for Visa Latin America and the Caribbean commented: “With unprecedented collaboration and data sharing, the innovation ecosystem in our region is flourishing with the rise of transformative technologies that will provide unparalleled value for both traditional and new players.”
Emerging Trends
Generative AI The research reveals that the majority of surveyed companies see generative AI as the key technology for innovation. Although 86% are already testing or using generative AI tools, the challenge lies in fully integrating this technology into operations, balancing cost, privacy, and other operational considerations. Of the companies providing additional details, 54% use AI for chatbot automation, 48% for fraud prevention, 45% for coding, and 44% for generating marketing content.
Open Finance Open Finance enables consumers to securely share data within the financial ecosystem, thus driving personalized commerce experiences based on data. Brazil stands out as a leader in this trend, with 5 million connected accounts in 1.5 years (5 times faster than the UK). Other markets like Colombia and Mexico are developing regulations for Open Finance, while Argentina and Peru are in the early stages of discussion.
Blockchain and Supply Chain Transformation Innovation in Blockchain is emerging with smart contracts, tokenization of real-world assets (RWA), and central bank digital currencies. It was selected as the third most impactful technology in the region. Companies like Agrotoken in Argentina are already using it to tokenize commodities, democratizing agricultural businesses.
Real-Time Payments Digital value networks powered by real-time payments are emerging as the future: 29% of respondents identify them as the top trends of interest in payment matters. The real-time payment network of the Central Bank of Brazil has garnered global attention, while P2P mobile wallets are a success in Peru, Colombia, Argentina, and Chile.
Roberta Isfer, Leader of Innovation and Insights for Visa Latin America and the Caribbean, expressed that these technologies “are beginning to help our businesses creatively solve real-world problems, become more efficient and competitive, and unlock a new era of endless possibilities.”