Gaming the banks

Traditional LatAm banks jump into gaming to counter the rise of digital banks.

The Gaming sector in Latin America is booming. According to Statista, a German consumer and data market company, there are 2.7 billion gamers at global level, of which 260 million are based in Latin America. Mexico, Brazil and Chile are the countries with the most gamers in the region. Newzoo, a gaming research firm, estimates that the industry is expected to grow by 10.3% in Latin America, generating USD 8 billion in revenue by 2023 and accounting for 4% of worldwide revenues.

A market analyst at a leading multinational e-gaming publication explained, “Latin America is a strategic market in the gaming industry for three reasons: its young population, the room for growth and the penetration that e-games have in mobile games.”

“Latin America is a strategic market in the gaming industry for three reasons: its young population, the room for growth and the penetration that e-games have in mobile games.”

Market analyst, multinational e-gaming publication.

Strict lockdowns and mobility restrictions associated with the outbreak of the COVID-19 pandemic have generated a significant increase in the number of gamers. Brazil is a particularly exciting market with 200 million accounts and 67 million players with an average age of 30.

It is not surprising, therefore, that Itaú and Bradesco have started sponsoring e-games teams in the country. Both see the opportunity as a marketing investment, as part of their content strategy with influencers and lifestyle for younger generations. The market analyst saw it as an essential move, “Of course local banks want to get involved in the gaming sector, neglecting the industry would be a careless omission of young customers and clients. The pandemic has increased the use of videogames, two thirds of Latin American gamers play on a daily basis and these people are constantly exposed to ads, particularly in a region where consumers are reluctant to pay for premium services in this sector.”

These traditional banks are concerned with the growth of virtual banks among young generations – at present Nubank has more 35 million customers; Inter, 11.4 million and C6 Bank, 7 million. Furthermore, data from the Apple Store and Google Play show that in May 2021 virtual banking apps registered more than 20 million downloads for the fourth consecutive months while apps from traditional banks like Itaú and Bradesco had an 8.7% decrease compared to April 2021.

“I am not sure what success they will have. In Spain, CaixaBank sponsored the MadLions team but they quickly lost interest.”

COO, game developer, Spain

This isn’t the first time traditional banks have got into gaming though, according to the COO of a Spanish game developer, “I am not sure what success they will have. In Spain, CaixaBank sponsored the MadLions team but they quickly lost interest. Considering that Latin America has a similar gaming culture to Spain, I’m not sure they will stick around for long. Financial entities, in general, don’t have a good understanding of the sector, it’s more about socialising and having fun. Banks found strategies to advertise their products in bars and sports grounds, they should be using the same strategies here, but they aren’t.”

Important Notice
While the information in this article has been prepared in good faith, no representation, warranty, assurance or undertaking (express or implied) is or will be made, and no responsibility or liability is or will be accepted by Deheza Limited or by its officers, employees or agents in relation to the adequacy, accuracy, completeness or reasonableness of this article, or of any other information (whether written or oral), notice or document supplied or otherwise made available in connection with this article. All and any such responsibility and liability is expressly disclaimed.
This article has been delivered to interested parties for information only. Deheza Limited gives no undertaking to provide the recipient with access to any additional information or to update this article or any additional information, or to correct any inaccuracies in it which may become apparent.

Most recent in TMT

Speed dial

Anatel's approval of Winity-Vivo sharing agreement in Brazil.

Bolivia’s fibre fiesta

ENTEL’s fibre optic expansion exerts further dominance over the competition.

Starlink: Shooting for the stars

Revolutionising internet connectivity and bridging the digital divide in LatAm.

5G rollout

Brazil’s rapid deployment of 5G is leading the region but others are struggling.

Game on

Latin America’s gaming industry continues to grow, even after a pandemic related boom.

Emerging tech

Colombia’s aspirations to become a regional tech hub face obstacles.

Ad-ding up

Strong advertising growth in LatAm looks unlikely to be repeated in 2023.

Digital divide

5G continues its expansions across Latin America but challenges remain.

Latino gamers

Game development studios thrive across Latin America.

The chips are down

Opportunities and risks in LatAm from the global semiconductor chip shortage.