Mexico Fintech Chatter – Jan. 13, 2025

Mexico FinTech News

Nu credit slowed down in December as peers pressed ahead, Condusef data suggests

Nu Mexico’s performing loans declined slightly in December, according to data released by financial consumer watchdog Condusef. While we note Condusef’s data is preliminary (there have been variations between its figures and official data released later), and it does not include other data (such as deposits or write-offs), the trends are still interesting. After positive growth in October and November, Nu’s performing portfolio declined 1.3% m-o-m in December. While it’s difficult to say for sure given the limited data, we believe this contraction might signal continued caution to accelerate originations, as non-performing loans remain high. On the other hand, peers Stori and Klar both reported continued credit growth, expanding 3.0% and 3.2%, respectively. On a quarterly basis, Nu’s performing portfolio rose by 11.4%, its best quarter since becoming a Sofipo, but still significantly slower than its smaller rivals: Stori rose by 22.5% and Klar by 32.5%.

Nu slowed down in December after two months of growth

Source: Miranda Partners, Company data, Condusef.

 

Mandatory Digital Payments Proposed to Combat Crime

BBVA México’s CEO, Eduardo Osuna, suggests mandating digital payments for services like fuel purchases to reduce cash usage and enhance transaction traceability, aiming to combat crimes such as fuel theft. He highlights that implementing digital payments in both private services and government transactions could decrease informality and boost financial inclusion in Mexico. The pervasive use of cash has been the Achilles heel of fintechs in Mexico. Such measures and others (i.e., digital government transfers with no cash–out in urban areas) would be hugely welcomed.

El Universal, 01/06/25, Antonio Hernández: “Digital Payments by Decree Proposed to Combat Crime”

 

Fintech Maintains Appeal for Venture Capital in 2024

Despite a global downturn in venture capital funding during 2022 and 2023, the fintech sector in Latin America remained robust in 2024. According to Endeavor’s “Venture Capital y Growth Equity en Latam 2024” report, fintech companies attracted 37% of total investments in the first half of 2024, particularly those in advanced stages seeking expansion. Notably, while artificial intelligence firms led in the number of investment rounds, fintechs secured the largest capital amounts due to the size of their funding rounds, underscoring sustained investor confidence in the industry.

El Economista, 01/06/25, Sebastián Estrada: “Fintech Maintains Appeal for Venture Capital in 2024”

 

Cryptocurrencies in 2025: Regulatory Clarity, Stablecoins, and AI Integration

The cryptocurrency market in 2025 is poised for transformative growth, according to Bitso. The exchange points out that the incoming U.S. administration has promised a more favorable stance toward cryptocurrencies, with plans for a bitcoin reserve and a crypto advisory council to foster regulatory clarity. Moreover, stablecoins, gaining traction for remittances in countries like Mexico, now account for 10% of U.S.-to-Mexico transfers. AI integration is expected to enhance security, transaction efficiency, and financial services personalization, boosting adoption. Bitcoin has strengthened, surpassing $100,000 in 2024, reflecting its global financial consolidation.

Milenio, 01/10/25, Jordan Solano: “Cryptocurrencies in 2025: Regulatory Clarity, Stablecoins, and AI”

 

 

LatAm FinTech News

David Vélez’s Fortune Declines by Over US$3 bn in 60 Days

David Vélez, founder of Nubank, has seen the fortune he controls (much of it in charitable foundations) decrease by approximately US$3.8 bn over the past two months, reducing his net worth to around US$11 bn. This decline is driven by the drop in Nubank’s share price from $15.23 to $11.05 per share during this period. Consequently, Vélez has been surpassed by Alejandro Santo Domingo as the wealthiest individual in Colombia.

Infobae, 01/10/25, Juan Escobar Fernández: “David Vélez, Nubank owner, lost more than US$ 3.000 mn of his fortune in 60 days”

 

Scotiabank Transfers Banking Operations in Costa Rica, Colombia, and Panama to Davivienda

Scotiabank has agreed to transfer its banking operations in Costa Rica, Colombia, and Panama to Davivienda, a Latin American financial institution owned by the Bolívar Group. In exchange, Scotiabank will receive an approximate 20% ownership stake in the combined banking operations led by Davivienda. This strategic move aligns with Scotiabank’s focus on operational efficiency in its non-core markets.

FinTech Futures, 01/07/25, Cameron Emanuel: “Scotiabank transfers Costa Rica, Colombia, and Panama banking operations to Davivienda”

 

Chilean Fintech Colektia Raises US$9 mn to Expand Debt Collection Services in Latin America

Colektia, a Chilean fintech specializing in AI-driven debt collection, has secured US$9 mn in a funding round led by Mouro Capital, with participation from Endeavor’s Forward Fund, Full Spectrum Capital, Anteris, and angel investors. The company plans to leverage this investment to impact over 30 million clients by 2025, enhance its technology for digital debt collection, acquire credit portfolios, and pursue growth through mergers and acquisitions across Latin America. Currently operating in Mexico, Chile, Peru, and Colombia, Colektia aims to become a key player in the region’s US$3.5 bn debt collection market.

Latam Fintech Hub, 01/07/25, Staff:  “Chilean Fintech Colektia Raises US$9 mn to Expand Debt Collection Services in Latin America”

 

dLocal Secures UK Payment License to Expand Cross-Border Operations

Uruguayan fintech dLocal has received authorization from the UK’s Financial Conduct Authority (FCA) to operate as a payment institution. This license enables dLocal to assist UK-based clients in entering regions with low penetration of traditional payment methods, where international credit cards account for only 20% of transactions.

LatamList, 01/08/25, Hellen Villena: “dLocal secures UK payment license to expand cross-border operations”

 

Finnet Authorized as Payment Transaction Initiator via Pix in Open Finance

Finnet, a Brazilian financial management software company, has received authorization to operate as a Payment Transaction Initiator (ITP) through Pix within the Open Finance framework. This approval enables Finnet to initiate transactions outside traditional banking environments, facilitating processes such as e-commerce purchases and deposits into banking and fintech applications.

Latam Fintech Hub, 01/07/25, Staff: “Finnet, Brazilian credit fintech, obtains authorization to operate as Payment Transaction Initiator in Open Finance through Pix”

 

OKTO Acquires Brazilian Fintech U4C to Enhance iGaming Payment Solutions

OKTO, a multinational specializing in digital financial transactions for the sports betting market, has acquired a majority stake in Brazilian fintech U4C. U4C is authorized by the Central Bank of Brazil as a direct participant in Pix and Open Finance. This strategic acquisition enables OKTO to expand its operations in Brazil and strengthen its position in the iGaming sector by offering efficient, regulated payment solutions tailored to client needs.

Latam Fintech Hub, 01/09/25, Staff: “Brazilian Fintech U4C Acquired by Multinational OKTO to Operate as Direct Pix Participant in iGaming”

 

Chilean HR tech startup Buk raised $50 million in its Series B funding round

Buk reached a valuation of $850 million, with the round led by Headline, with participation from Greenoaks, Base10, Workday, and Endeavor Catalyst. Buk operates in Chile, Peru, Colombia, Mexico, and plans to expand into Brazil. The funds will support its entry into Brazil, team expansion in Mexico, and continued investment in its HR platform and benefits ecosystem. CEO Jaime Arrieta emphasized the funding reflects Buk’s positive growth and the increasing prominence of Latin American talent. Shalini Rao of Headline praised Buk’s efficiency and execution in scaling across the region. With over 1.5 million users and 7,000 client companies, Buk aims to continue transforming HR processes into competitive advantages and fostering happier workplaces.

América Economía, 01/06/25, Staff: Buk raises $50M in Series B, nearing unicorn status

 

 

Global FinTech News

BBVA Accelerates Banking Innovation with AWS Cloud Migration in Europe

BBVA has migrated its data platform, ADA (Analytics, Data, AI), to Amazon Web Services (AWS) across its European operations, achieving a 94% reduction in analytics processing time. This strategic move enhances data storage efficiency, scalability, and security, positioning BBVA at the forefront of digital transformation in global banking. The bank plans to extend this cloud infrastructure to Mexico, Uruguay, Colombia, Peru, and Argentina by 2025.

FinTech Magazine, 01/07/25, Louis Thompsett: “BBVA Accelerates Banking Innovation with AWS Cloud Migration”

 

OnPay Secures Over US$100 mn in Funding

US-based provider of payroll and HR solutions OnPay raised over US$100 mn in a funding round led by Carrick Capital Partners, with participation from AB Private Credit Investors and MC Credit Partners. The funds will enhance OnPay’s payroll and HR solutions, scale product development, and expand its customer support and go-to-market strategy.

FF News, 01/10/25, Staff:  “OnPay Raises Over US$100 m n in Funding”.

 

Embat Expands into Europe with Offices in Germany and the UK

Spanish fintech Embat, specializing in treasury and payment management solutions for businesses, has expanded its operations into Europe by opening offices in Germany and the United Kingdom. Embat aims to simplify financial processes for medium and large companies operating across multiple jurisdictions. The company integrates with over 15,000 banks worldwide, facilitating transactions in 70 currencies, and serves approximately 300 corporate clients, including Cabify, Playtomic, and Wallapop.

El Economista, 01/06/25, Matteo Allievi: “The fintech Embat ventures into Europe and opens offices in Germany and the United Kingdom”

 

Download PDF: MI-MxFintechChatter–011325