BFSI Industry in Latin America - IT Market Assessment by InfinitiResearch

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Though Latin American countries are dominated by state owned banks, privately owned banks are more preferred over state owned banks. The primary reason being greater financial stability and economic growth.

Further, Latin American economies have a varying degree of FDI, ranging from moderate to very high. FDI has enabled Latin American banks to meet their capital needs and also improve their efficiency. Mexico has witnessed the highest FDI in Latin American region.

The report forecasts the IT spending of the BFSI Industry in Latin America over the period 2007-2010. It is meant for IT vendors and intends to help them identify selling opportunities in the BFSI Industry in Latin America. The report identifies key business issues being faced by the BFSI Industry in Latin America.

Further, the identified sales drivers can be used to penetrate these accounts or increase current share of the customer's wallet. Also, the report lists leading IT buyers and provides their brief company profile, along with their IT spending.

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									BFSI Industry in Latin America
         IT Market Assessment
                                                            BF SI Ind us tr y in L at in A mer ic a – IT Mar k et
                                                                                As s es s m en t



                                          Table of Contents

1.     BFSI In du stry in Latin Ameri ca .................................................... 2
     1.1 Market Size and Forecast ........................................................ 2
     1.2 Market Tren ds ...................................................................... 4
2.0 Growth Drivers & Restraints ....................................................... 6
     2.1 Growth Drivers ..................................................................... 6
     2.2 Growth Restraints .................................................................. 7
3.0 IT Spen ding – BFSI Indu stry in Latin America ................................. 9
     3.1 IT Spen ding & Forecas t ........................................................... 9
     3.2 IT Sales Drivers .................................................................. 10
4. Regulation s Affecting IT Spending ............................................... 11
Oth er Reports in this Seri es ........................................................... 12



                                            List of Exhibits

Exhibit 1: Banking & Financial Services Industry in Latin America Market Size & Forecast
    2007-2013 (in trillion USD) .............................................................................. 2

Exhibit 2: Insurance Industry in Latin America Market Size & Forecast 2007-2013 (in
    trillion USD) ................................................................................................... 3

Exhibit 3: Banking & Financial Services - IT Spending & Forecast 2007-2013 ( in billion
    USD)............................................................................................................. 9




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                                              BF SI Ind us tr y in L at in A mer ic a – IT Mar k et
                                                                  As s es s m en t



    1. BFSI Industry in Latin America

1.1 Market Size and Forecast
According to TechNavio Estimates, the Latin American banking sector is currently $1.8
trillion in terms of asset size. The nations included in estimating the asset size of the
banking sector are the major economies of Brazil, Mexico, Argentina and Chile. However,
the Insurance sector is relatively small. The size of the Latin American insurance sector
is $85.0 billion.

The asset size of the Banking sector in Latin America is estimated to reach $3.8 trillion
by 2013 at a high growth rate of about 13.6%. This indicates that the Latin American
banking sector is an emerging financial sector and is thus, extremely progressive.

Exhibit 1: Banking & Financial Services Industry in Latin America Market Size & Forecast
2007-2013 (in trillion USD)



4.0                                                                                   3.8

3.5                                                                      3.3
                                                           2.9
3.0
                                              2.6
2.5                               2.3
                     2.0
2.0      1.8

1.5

1.0

0.5

-
         2007       2008         2009        2010         2011          2012         2013




                                                                     Source: TechNavio Estimates




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                                               BF SI Ind us tr y in L at in A mer ic a – IT Mar k et
                                                                   As s es s m en t



The insurance sector is estimated to reach $183 billion by 2013 at a whooping growth
rate of about 13.5%. The region thus has tremendous potential for growth and will be
highly lucrative for the global players.

Exhibit 2: Insurance Industry in Latin America Market Size & Forecast 2007-2013 (in trillion
USD)
200.0
                                                                                     183.0
180.0
                                                                        162.0
160.0
                                                           142.0
140.0                                          125.0
120.0                              110.0
                        97.0
100.0       85.0
 80.0
 60.0
 40.0
 20.0
  -
           2007        2008         2009        2010        2011         2012         2013




                                                                      Source: TechNavio Estimates




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                                                BF SI Ind us tr y in L at in A mer ic a – IT Mar k et
                                                                    As s es s m en t




1.2 Market Trends
   Country specific trends:
              Brazil: Brazil’s financial sector is the largest in South America. Foreign direct
               investments (FDI) account for less than 25% of the banking industry. The
               financial sector is still dominated by domestically owned banks. Starting a
               business takes much longer time in Brazil than anywhere else across the
               world. The insurance market is growing but fairly small.

              Chile: Chile has a strong and one of the most developed financial systems
               amongst the major emerging economies of the world. The financial sector
               boasts of 14 domestic and 12 foreign banks, competing with each other. No
               discrimination prevails between domestic and foreign banks and insurance
               companies. The insurance industry is large with 52 companies. Chile has the
               largest capital market in Latin America and thus, is a vital centre of growth.

              Argentina: The Argentine banking 
								
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