Tell us a bit about your background, how you became involved in cross-border payments, and how long you have been based in Santiago.
I graduated from International Business with a major in International Financial Transactions and moved to Chile for work. Latin America had always attracted me, and I was keen to work in the government sector and advise European companies on their trade and investment initiatives in the region. As often happens, I came for work and stayed for love. Time flies, so I have now been living here for five years.
Despite the historical, cultural, and linguistic proximity between Europe and Latin America, the relevance of European companies in the region has been steadily decreasing. I set myself the goal of doing what I could to reverse this trend.
When I came across RTGS.global, I immediately had the sense that I would click with the team and that the product is perfectly suited to the current needs of the region.
Why are cross-border payments such a hot topic for Latin America, and what is really driving growth (rise of e-commerce, remittances, etc.)?
When it comes to cross-border payments, Latin America has long been a region with significant intra-regional payment flows, dominated by remittances. Many people leave their home countries in search of higher incomes and a better future then send money back to their families. This happens not only between Latin America and North America or Europe, but also within the region itself.
Second, the EU and Mercosur (an economic bloc composed of Brazil, Argentina, Uruguay, and Paraguay) have just signed a mutual free trade agreement eliminating tariffs on imports. It is one of the largest free trade areas in the world, covering more than 700 million people and 20% of global GDP. We can therefore expect a significant increase in trade in both directions, which naturally also brings a growing need for FX settlement.
Third, the pandemic accelerated the rise of e-commerce, which further increased the importance of cross-border transactions. Companies such as Mercado Libre have grown from a local marketplace and payment platform into the most valuable company in the region, operating their own fleet of airplanes and looking to expand even further internationally.
What are the main pain points you see in the market from a customer point of view? How can the RTGS.global platform address these?
The banking industry, and payments in particular, has been in constant evolution. When I first arrived in Chile, I could not even process online transactions with my EU-issued credit card. Although things are improving, even today, withdrawing cash from ATMs in some Latin American countries can still be challenging.
Mainly due to regulatory and tax-related issues, foreign residents, including EU citizens, still struggle to open bank accounts without holding a long-term visa. This is an area where RTGS.global can provide a solution by connecting banks and payment service providers around the globe to facilitate instantaneous cross border payments.
From a macro perspective, banks operating across borders are themselves seeking greater independence in FX settlement. Using RTGS.global to exchange currency to currency direct - without using the US dollar and US correspondent banks in between - is clearly an attractive option.
What are some challenges that are unique to Latin America, such as volatility and regulatory issues?
Politics is always a major topic in the region. Since most countries are presidential republics, the impact of political cycles on business can be significant.
However, monetary policy often manages to remain surprisingly independent. I like to give the example of Peru: having had eight different presidents in the past ten years - some of whom are now imprisoned - one could consider the country politically unstable. Yet when we look at inflation over the same period, it has outperformed many European countries. This is largely due to the work of the central bank’s president, Julio Velarde, who has served for over 20 years and whose position has remained untouchable despite political turbulence.
For many countries, regional cooperation is also difficult. People often assume that because of a shared language, Latin American countries are close to each other, but this is rarely the case. Differences in population origins, strong national pride, and minor historical disputes make macro-level collaboration challenging. That said, I have seen signs of positive change in recent years.
The fintech world, however, is different. Led by passionate entrepreneurs, fintech companies seem eager to create a large ecosystem and focus on synergies rather than pure competition. They understand that the market is too complex for any single player to win in all areas, so they focus on what they do best and collaborate with others to move the region forward.
What do you see as the most interesting industry trends in the region over the next 1–3 years?
I believe that the importance of Latin America will continue to grow and that the potential discussed for decades will finally begin to materialise. Beyond payments, this can be seen in areas such as music, culture, and, of course, trade and business.
Financial inclusion is one of the most important trends. Traditionally, a large portion of the population has been excluded from the banking system and relied primarily on cash. This changed with the emergence of neobanks, which offered an alternative to traditional banks by allowing people to open accounts digitally with simplified requirements. These institutions later introduced their own credit cards, obtained banking licenses, and are now ready to compete with the largest commercial banks in their countries.
At the same time, Latin America appears to be steadily stabilising both economically and politically, which naturally supports business growth. The region may increasingly serve as a safe haven for foreign capital. Finally, its strategic geography and abundance of raw materials could play an important role in connecting the Euro-Atlantic area with Asia. With this growth the need to for instant cross-border payments will increase and RTGS.global answers the need for banks and payment service providers.
