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Banking in Latin America is undergoing an accelerated digital transformation: 87% of institutions increased their technological investment in 2024 and almost half plan to continue doing so in 2025 (source: Bloomberg Línea, based on the Latin American Digital Banking Study 2025 by Infocorp, Uruguay). However, this effort does not yet translate into massive adoption of artificial intelligence (AI). Despite the fact that 8 out of 10 banking executives consider AI as strategic, only 35% of banks actually implement it. The paradox is clear: digitalization is advancing, but AI is still held back by barriers that go beyond the technical.

Digital banking is already a reality

The Infocorp (Uruguay) study reveals that the digitalization of financial services in the region is consolidated:

  • 82% of banks allow you to open an account completely online.
  • 68% offer digital consumer loans.
  • 56% facilitate the application for credit and debit cards in online channels.
  • 38% even make it possible to take out insurance without having to go to a branch office.

In addition, 58% report growth in digital customers, confirming that the physical channel is no longer the only battlefront.

Collaboration with fintechs is also key: 85% of banks work with them to innovate services, although 12% remain resistant and prefer traditional structures. Here a central tension is revealed: those who bet on open ecosystems advance faster, while others remain tied to closed and less competitive models.

What is holding back AI adoption?

While enthusiasm is high-80% of executives see AI and machine learning as strategic tools to differentiate themselves-actual adoption is limited.

The main barriers identified are:

  • Organizational culture (28%): internal resistance to change, silos and lack of digital mindset.
  • Technological infrastructure (23%): legacy systems that make it difficult to integrate advanced analytics.
  • Budget (20%): investments prioritized in channels and security before AI.
  • Regulation (45%): evolving legal frameworks, especially in open banking and data use.
  • Shortage of specialized talent: lack of data science and MLOps profiles in the region.

In contrast, regions such as the US, Europe and Asia show much wider deployment. China and Singapore, for example, already integrate AI into real-time credit scoring, proactive fraud detection and personalized financial advice.

Use cases already in operation

Despite the barriers, there are areas where AI is already making an impact in Latin America:

  • Fraud detection: analysis of large volumes of data to identify anomalous operations. Represents about 25% of the current impact of AI in banking.
  • Personalization: offers adjusted to the customer’s profile, increasing engagement and cross-selling.
  • Alternative credit scoring: algorithms that consider non-traditional variables (cell phone usage, service payment history), favoring financial inclusion.
  • Integrated ecosystems: unified experiences that allow you to manage accounts, payments and investments from a single digital environment.

Fintechs in Mexico and Colombia already use generative AI to design microfinance models, while banks in Brazil have led with investments of more than 60% in AI, analytics and big data (source: Fintech Mexico, Dock Tech).

Open ecosystems and banking of the future

The Infocorp (Uruguay) study also highlights the exploration of Banking as a Service (BaaS), where 39% of banks in the region are already developing initiatives. This is complemented by 27% that seek to generate new alliances with fintechs to expand their digital portfolio.

Open banking, however, is proceeding cautiously. Most banks remain in early or intermediate stages, with “operational and strategic uncertainty” about how to capture value. Both regulation and lack of clarity on collaborative business models weigh in.

Going forward, the key will be the complete, 100% digital mobile experience. As Ana Inés Echavarren, CEO of Infocorp (Uruguay), points out, the banks that manage to offer that superior experience will be the ones that win the battle for the customer.

The market towards 2030: a billion-dollar opportunity

Projections point to accelerated growth: the financial AI market in Latin America will grow from US$1.5 billion in 2023 to more than US$13 billion in 2032, at an annual rate of more than 26% (source: Statista, IDB, Fintech Americas).

This implies that AI is not a nice-to-have, but the driver of the next competitive leap in digital banking: automation, hyper-personalization, embedded finance and real-time analytics.

Closing

Digitalization is no longer optional and AI will be the true differentiator in Latin American banking. But the central challenge is not in the technology, but in overcoming cultural barriers, aligning regulatory frameworks and training specialized talent.

The learning is clear for any organization in digital transformation: without culture and agility, there is no technology that scales. From FactorIT we have seen that AI projects are not won in the cloud or in the core, but in the ability to integrate data, processes and people under a common strategic vision.

Integrated sources

Bloomberg Línea (July 2025), based on Latin American Digital Banking Study 2025 by Infocorp (Uruguay); Statista; IDB; Fintech Americas; Fintech Mexico; Dock Tech.

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