Mexico FinTech News
Banking-as-a-Service coming to Mexico (Finally)?
In Mexico, according to El Economista, a new legislative proposal is under review at the National Commission for Regulatory Improvement (Conamer) to introduce ‘digital brokers’, enabling financial institutions to extend their services to non-financial companies. This is designed to increase financial inclusion by allowing e-commerce platforms and consumer-focusing companies to offer financial services using the platform of regulated banks. The initiative aims to leverage the strengths and regulatory scrutiny of traditional financial outlets with the low-cost customer access and trust of non-financial companies. While Banking-as-a-Service or Sponsored Banks in quite different ways is common in Europe, the US and most of Latin America, Mexico has been left behind, in part because of conservative regulators, and in part because opposition of large incumbent banks who do not want to see more competition. It remains to be seen what impact this legislation has, whether incumbents can block its implementation but if done properly it could be a game changer in promoting financial inclusion in Mexico.
FinTech Plata Card obtains a $US100M credit line
FinTech Plata Card, backed and managed by former top executives and private equity behind Tinkoff Bank in Russia, one of the most successful FinTechs of all time, has successfully secured a significant credit line of $US100 million Fasanara Capital Ltd. This financing marks a pivotal moment for the company, allowing it to broaden its reach within the Mexican market. At the same time Plata’s parent, Diffiere Technologies, has requested a full Mexican bank license, and according to press reports is next in line to be awarded one. With this line of credit, Plata Card plans to implement various strategic initiatives focused on improving its existing suite of products and services, as well as introducing innovative solutions to address the evolving needs of consumers. According to business columnist Dario Celis, Plata has already issued 300,000 credit cards, and now has 1,000 employees. Miranda’s FinTech writer has applied for a card and looks forward to his appointment next week with a Plata ambassador. (Unlike many other FinTechs, Plata requires in-person meetings before granting credit approval, which, along with its sophisticated machine learning data tools, may explain why its NPLS are for now lower than its main rivals).
Latam FinTech Hub, 05/08/2024, Staff: FinTech Plata Card obtiene línea de crédito de $US100M para mejorar la accesibilidad de los servicios de finanzas personales en México
Dario Celis, 05/09/2024 https://heraldodemexico.com.mx/opinion/2024/5/9/el-caso-del-hotel-melody-maker-601444.html
FinTechs Openpay and Kueski seal alliance to expand electronic payments in Mexico
FinTechs Openpay and Kueski have announced a strategic alliance to expand electronic payments in Mexico. This collaboration will allow both companies to strengthen their capabilities and offer more comprehensive solutions to users, thus facilitating access to digital financial services in the country. The partnership between Openpay and Kueski represents a significant advancement in the Mexican FinTech ecosystem and promises to drive the adoption of electronic payments in the domestic market.
Latam FinTech Hub, 05/07/2024, Staff: FinTechs Openpay y Kueski sellan alianza para ampliar pagos electrónicos en México
Other news
Milenio, 05/06/2024, Sebastián Estrada: Citi adquiere a FinTech Cicada para negociar digitalmente bonos en México
Forbes, 05/09/2024, Staff: Prevén que México tenga 86 millones de usuarios FinTech para 2027
LatAm FinTech News
Colombian FinTech RapiCredit announces upcoming agreement to enter the Peruvian market
The Colombian FinTech RapiCredit has made public its plans to finalize an agreement that will enable its entry into the Peruvian market. This strategic move marks a notable milestone for the company, signifying its intent to expand its footprint beyond Colombia and tap into the promising opportunities offered by the Peruvian financial landscape. By venturing into Peru, RapiCredit aims to leverage its expertise and innovative financial solutions to cater to the needs of a broader customer base, further solidifying its position as a key player in the Latin American FinTech sector.
Latam FinTech Hub, 05/09/2024, Alejandra Rico Muñoz: FinTech colombiana RapiCredit anuncia próximo acuerdo para llegar al mercado peruano
Nubank surpasses 100 million clients
Nubank, the Brazilian FinTech giant, has surpassed the milestone of 100 million clients of which 7mn were in Mexico. Meanwhile, Nu reported 1Q23 numbers for its Mexican Sofipo which showed huge increase in deposits to $2.2bn, rising losses as NIM decline to just over 2.6% from 16% a year ago due to higher yields on deposits and credit/deposit ratio of just 38%, but NPLs and Cost of Risk came down (due in part to slower growth in credit.). These numbers support both the bull case (lots of new customers, massive increase in deposits and falling cost of risk) and bear case (collapsing NIM, substantial losses) for Nu Mexico.
Latam List, 05/09/2024, Sara Delgado: Nubank surpasses 100 million clients
https://www.linkedin.com/feed/update/urn:li:activity:7193259416127709184/
Other news
Contxto, 05/08/2024, Staff: Bold to Launch New Business Account with Mastercard
Contxto, 05/08/2024, Staff: Brazilian FinTech Accounts Surge 77%, Surpassing Population Count
Bloomberg Línea, 05/07/2024, Isabela Fleischman: Jeeves, de serviços financeiros, levanta US$ 75 mi em crédito para crescer no Brasil
Global FinTech News
Monzo secures additional £340m funding with £4bn post money valuation
Monzo, the UK-based digital bank, has secured an additional £340 million in funding. This funding round underscores investor confidence in Monzo’s growth prospects and its ability to disrupt the traditional banking sector. The additional capital will enable Monzo to further invest in its technology, expand its product offerings, and fuel its expansion plans both domestically and internationally. The offering was led by CapitalG, Alphabet’s growth fund and pushes Monzo’s valuation to about £4bn post-money. With a user base that recently expanded by 2 million to 9 million, the new funds will support Monzo’s development of new products, including pensions and mortgages, and its US expansion efforts. In October 2023, Monzo appointed Conor Walsh, formerly of Block’s Cash App, as its US CEO.
TechCrunch: Monzo, the UK challenger bank with 9 million customers, raises $430 million | TechCrunch
Monzo boosts funding to $610 million to crack U.S., launch UK pensions (cnbc.com)
Other news
FinTech Futures, 05/07/2024, Cameron Emanuel-Burns: Digital challenger GoTyme Bank acquires salary lender FinTech SAVii
FinTech Futures, 05/09/2024, Cameron Emanuel-Burns: Equals Money to power Chorus TM’s new financial management platform for the music industry