Need a breather from NFTs? Let’s talk about the newest capital of FinTech — Latin America.
The financial landscape has been heating up in Latin America over the last several years with 1,166 fintech ventures at last count in 2018 by the Inter-American Development Bank
. The reasons are plentiful but for starters, 50% of the population lacks a bank account. Traditional financial institutions hadn’t given the area a lot of attention. FinTech startups have changed all that.
Last week’s launch of Z1
showed us how much is on the table.
Z1 is a digital bank for teenagers and part of the Winter 2021 batch of Y Combinator startups. With their parents’ permission, teens can create an account with Z1. Once approved, they’ll be issued a Mastercard and can manage their accounts online, make P2P transfers to friends, and more.
Z1 isn’t just a bank, it’s about setting up the next generation of adults for financial independence. This is what co-founder Thiago Achatz said on launch day:“Many Gen Z’ers want to learn not only how to spend their money, but also how to earn money of their own and become autonomous from their parents from an early age. Z1’s product is the first in Brazil to give them this autonomy and set them on the road to financial independence.”
Z1’s goal is to become the go-to bank for Gen Z in LatAm. For now, the company is starting in Brazil.
The U.S. and Europe are looking at Gen Z's potential for spending too. Venmo and Revolut are working on debit cards
for teens and Step
recently introduced their banking solution for teens and families.
We're wishing Gen Z record-breaking financial growth to match their voter turnout.