1 Billion People, Trillions In Growth: Why Latam Sea Are The Next Economic Powerhouses By Leading Digital Finance Revolution

Latin America and Southeast Asia , home to over one billion people, are emerging as global economic powerhouses - driven by investments in infrastructure, middle-class expansion, and digital transformation. This is according to a report by Valor Capital Group and Credit Saison, which highlights that despite their readiness for growth, both regions continue to face financial inefficiencies and regulatory barriers.

The first-of-its-kind comparative study calls for increased investments in digital finance, cross-border collaboration, and blockchain to unlock their full potential, emphasizing how these regions are reshaping global trade and finance. While economic expansion is evident, countries in LATAM and SEA remain financially fragmented - limiting access to credit and hindering commercial integration.

Latin America and Southeast Asia are no longer just emerging markets they are defining the future of digital finance, trade, and economic collaboration, says Bruno Batavia , Director of Emerging Tech at Valor Capital. According to him, unlocking their full potential will require regulatory modernization, regional partnerships, and financial innovation to be central to the agenda. The next decade will be crucial in determining whether these regions can overcome their historical financial limitations and emerge as fully integrated players in the global economy.

Small and medium-sized enterprises SMEs are the backbone of these economies, but 87 of their financing needs in Latin America remain unmet, resulting in a 1.4 trillion financing gap. In Southeast Asia , 51 of micro, small, and medium enterprises MSMEs face difficulties accessing financial services, creating a 272 billion deficit. Traditional banking systems, still reliant on outdated credit assessment models and manual processes, are unable to keep up with growing demand, stifling the growth of millions of businesses.

This report serves as a critical blueprint for stakeholders seeking to harness the immense potential these regions offer. Credit Saison has been in Brazil since 2023, and has been present in Southeast Asia for over ten years, with the unique ability to deploy investments via private credit and venture capital to support the growth of fintechs and founders in both debt and equity. Through our experiences as an operator in global markets with steep Japanese heritage, partnerships and knowledge exchange are critical to navigating and adapting to local nuances and forming successful strategies in the market. For Credit Saison, its always about winning together with our partners. We look forward to deepening our engagement in both regions to collaboratively unlock pathways to sustainable growth, said Qin En Looi, Partner at Saison Capital, the corporate venture capital arm of Credit Saison.