How Wise captured 25% of Brazil’s cross-border market (and what it reveals about fintech’s future in LATAM)

While attention often focuses on developed markets, the most exciting fintech innovations are emerging where mobile technology, young digital-native populations, and gaps in traditional banking converge. These regions aren’t just adopting Western models – they’re creating entirely new paradigms that may eventually reshape global finance.

Today I’m joined by Nadia Costanzo, Director of Banking for the Middle East, Africa, and Latin America at Wise. Nadia drives Wise’s expansion across these regions by building banking relationships, securing licenses, and navigating complex regulatory frameworks.

Her background is uniquely valuable – before Wise, she worked with Kiva in Nairobi facilitating microfinance across Africa, contributed to the World Bank’s Universal Financial Access agenda, and worked directly with microfinance institutions in Paraguay.

Today, we’ll explore how fintech evolves differently across emerging markets, examine key challenges, and discuss surprising innovations where traditional banking is limited. We’ll also consider what these developments mean for established financial institutions looking to engage with these dynamic markets.

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Focused expansion in LATAM’s diverse markets

Latin America is often viewed as a unified market, but Nadia breaks this perception. Each country presents unique opportunities and regulatory conditions. Wise currently operates in Brazil, Mexico, Chile, Colombia, and Costa Rica. It prioritizes depth over breadth. “Whenever we choose a market, we want to be able to ensure that we offer our whole product offering to the customers over there,” she shares.

A key driver for Wise’s regional strategy is customer demand for cross-border services. In Brazil, Wise holds approximately 25% of the market share in cross-border transactions. “That’s because we’re offering a more convenient product. It is more transparent and less costly than traditional financial services,” Nadia explains.

Regulation and Collaboration: Navigating the fintech landscape

The regulatory landscape in Latin America is actively evolving, and Wise is growing with it. Countries like Brazil and Mexico are building open regulatory frameworks. These support the growth of fintech partnerships. They also enable new entrants to offer services independently. “You see how they’re modelling their regulatory developments on each other rather than looking only to the Global North,” says Nadia.

Wise recently secured its second payment institution license in Brazil. This granted access to PIX, the country’s instant payment system. Nadia points out that this has dramatically changed consumer expectations. “Brazilians wouldn’t understand why you wouldn’t offer PIX. It’s that embedded in everyday use now.”

Fintech and Banks: From competition to cooperation

Instead of direct competition, Nadia observes increasing collaboration between banks and fintechs. Wise depends on local financial institutions for payment execution in some markets. Those institutions rely on Wise’s international infrastructure in return. “Partnership has always been part of our model,” she says. “We offer something to them, and they offer something to us.”

This approach echoes the banking-as-a-service model. It is particularly useful for SMEs and micro merchants seeking digital tools for cash flow management. Banks are also responding by creating their fintech branches or collaborating with firms like Wise. They are doing this to reach digitally native customers more effectively.

Financial inclusion and digital accessibility

While Wise currently serves mostly banked users, the broader vision involves expanding access. “Hopefully that will change,” Nadia adds. She talks about reaching unbanked populations in LATAM. This goal is becoming more achievable as smartphone access and digital literacy grow.

The trend toward small business digitization is also contributing to greater financial inclusion. “People want extreme speed—instant payments, seamless transfers. That’s driving adoption,” she says. Wise’s presence is helping local economies, especially SMEs. It helps them to gain access to transparent cross-border tools. It bypasses traditionally complex and costly banking methods.

Building local teams, strengthening local economies

Wise’s model is deeply rooted in local presence. In Brazil alone, the company has over 200 employees. “There’s no one who knows the ins and outs of how to operate in these places like local people,” Nadia emphasizes. Local hiring ensures that Wise can navigate regulatory uncertainty. It allows them to better serve communities in line with cultural expectations.

She also highlights a growing fintech ecosystem in LATAM. It is supported by fintech associations. These allow players to share challenges and regulatory concerns collectively. This collaboration is essential to ensuring long-term growth. It ensures safety and cybersecurity within the region’s digital banking systems.

There’s more work to be done (and opportunities to grab)

LATAM’s fintech ecosystem is becoming more connected and user-focused. In response, Wise is expanding its services. They’re building strong infrastructure for cross-border payments. They are focusing on digital banking as well as support for small businesses. Wise has obtained new licenses and is forming stronger partnerships. This helps them expand their services across Latin America. They can now offer both global reach and local understanding to their customers.

As Nadia notes, the work is far from over. “I’m excited to bring our global products to customers in the region,” she says. And with 2 million cards issued in Brazil alone, the appetite for better financial solutions is clear—and still growing.

The Big Ideas

  1. Each LATAM market is a unique opportunity. “We tend to go deep in the markets that we operate in.” Wise targets specific countries rather than treating LATAM as a homogenous region.
  2. Regulation is opening doors. “You see how they’re modelling their regulatory developments on each other.” Governments are enabling fintechs through open payment systems and licensing.
  3. Fintechs and banks need each other. “We need partners, but increasingly, they also need Wise.” Mutual dependencies are shaping a new model of embedded finance.
  4. Financial inclusion starts with accessibility. “You need to have access to the banking system and a smartphone.” Current users are mostly banked, but Wise is positioning itself for broader reach.
  5. Local teams build better products. “No one knows the ins and outs like local people.” Hiring regional talent helps navigate unwritten rules and strengthens market fit.

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How Generative AI and open banking are redefining personalization in financial services with Curinos’ Olly Downs

open banking holly downs

Generative AI and open banking are beginning to change how banks engage with customers. Today we will look at this process with Olly Downs. He is a Chief Technology and AI Officer at Curinos. With a career spanning three waves of AI, Downs brings a wealth of experience to the table. He published his first academic paper on what we now call generative AI, back in 1999. “I’ve almost been waiting for the current wave of AI to join us,” Downs reflects. He highlights the long-anticipated arrival of today’s AI capabilities.

AI-driven personalization will change digital banking. Banks are beginning to use it to recreate the personalized touch of traditional banking. Downs explains, “Traditional banking founded itself on personalized, high-engagement relationships. That followed families and businesses throughout their entire life cycle.” Personalizing the online experience is challenging due to the growth of digital channels. Curinos’ technology tackles this by analyzing customer journeys. It identifies the best times and ways to engage customers. This ensures that personalization continues in the digital space. The result is a more effective and tailored customer experience.

Generative AI is not just boosting personalization. It addresses the entire marketing cycle for banks. This shift is redefining how banks approach customer engagement. It’s enabling and testing tailored interactions with numerous ready-to-use marketing creatives. The impact is both profound and widespread. The blend of personalization with open banking is shaping the future of banking. 

1. Evolution of AI in Banking Personalization

Downs traces AI’s progress in banking, from Microsoft Research to today’s generative AI. He notes, “We’ve done so much better in understanding language. And the human internalization of concepts.” This progress has deepened our understanding of customer behavior across different communication channels. It provides a clearer picture of how customers interact, enabling banks to create more personalized experiences. Banks nowadays are focusing on data-driven customer lifecycle management.

2. Bridging the Gap Between Traditional and Digital Banking

Modern banks want to replicate the personalized touch of traditional banking online. This is a major challenge in the digital age. “The most satisfied retail banking customers engage with a branch. As well as digital services,” Downs says. This insight highlights the need for a consistent experience across all channels. AI helps unify customer journeys. It offers context for both digital and in-person interactions. Achieving this consistency is crucial for a seamless customer experience.

3. Generative AI: A Game-Changer for Financial Services Marketing

Generative AI addresses the marketing process for banks. Downs reveals, “We’ve been able to stitch in with the help of generative AI… how can we be experimenting live?” This technology allows for real-time learning and adaptation of marketing strategies. It accelerates the creative process and campaign execution.

4. Future of Open Banking and Personalization

Looking ahead, Downs contemplates the convergence of personalization and open banking. He muses, “There’s an opportunity for thinking about… pricing and packaging, both of deposit and lending products that can become very personal.” Yet, he also notes the potential challenges in data consolidation open banking might present, suggesting a need for consumer-driven solutions.

5. Micro-Personalization: The Next Frontier

The conversation touches on the concept of micro-personalization. It means “personalization for an audience of one.” The goal of personalized banking is to integrate both branch and digital services. Downs notes that open banking trends and data privacy issues make this complex. These challenges make personalization more difficult.

The Big Ideas

  1. AI-driven personalization is reviving traditional banking relationships. Downs highlights, “Traditional banking founded itself on personalized, high-engagement relationships.” He explains how AI is enabling banks to maintain this level of personalization. It is doing this across digital channels.
  2. Generative AI will change financial services marketing. Downs reveals, “It’s a massive unlock. It’s a hundred X unlock of the creative process in particular.” This technology allows for continuous experimentation and rapid adaptation of marketing strategies.
  3. The future of banking lies in the convergence of personalization and open banking. Downs predicts a future where banking products are highly personalized, stating, “There’s an opportunity for thinking about… pricing and packaging, both of deposit and lending products that can become very personal.” Yet, he also acknowledges the challenges that it might present in data consolidation.
  4. Customer engagement is key to long-term value. Downs explains, “The key use case has been about engagement and the path to primacy and maximizing quality of customers.”
  5. AI is enabling real-time learning and adaptation. Downs describes how Curinos technology can “generate new recommended creatives”. It does so in that “flow for the marketing team.” This allows for the immediate implementation of insights gained from customer interactions.

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