Miranda’s Weekly Mex FinTech Monitor – August 19, 2024
Mexico FinTech News
Finsus will begin the process to become a bank
Finsus, the third-largest Sofipo (savings and loan cooperative) in Mexico, is set to begin the process of transitioning into a full-fledged bank. This follows similar announcements from Nu, Mercado Pago, Plata, among others. The strategic move aims to broaden its range of financial services and improve its capabilities, enabling it to offer more comprehensive banking solutions and strengthen its position in the Mexican financial market.
Latam FinTech Hub, 08/12/24, Staff: Finsus, la tercera Sofipo más grande de México, iniciará trámites para convertirse en banco
Nu Mexico reported strong 2Q deposit growth, far outpacing credit growth
Nu Mexico closed the quarter with a total of 7.8 million customers, adding 1.2 million customers in the quarter, as Nu Account deposits exceeded $3.3 billion, reflecting an increase of $1 billion during the quarter. But as deposits outstrip credit by over 3x, and deposit accounts yield 14.25% versus CETES of 10.75% currently, the company continues to post heavy losses. In the conference call, the company highlighted a good environment for credit quality and noted some acceleration in loan growth in Mexico. With respect to its application for the banking license last year, it said it hopes to get approval over the next months, which seems optimistic, based on precedent.
Stori Black: The Mexican Unicorn’s Bet on the Premium Segment
Stori, a Mexican FinTech unicorn originally focused on lower income Mexicans, , has launched the **Stori Black** credit card aimed at users with strong credit histories who haven’t been offered premium options by traditional banks. The card offers 3% cashback, no annual fee, and flexible payment options, and is backed by Mastercard for global acceptance. This move diversifies its client base, but perhaps suggests the company has run out of good customers in the original segment.
El Economista, 08/16/2024, Sebastián Estrada: Las FinTech B2B redefinen el ecosistema financiero en México
FInTechs gaining ground
Over the past decade, fintechs in Mexico have evolved from niche players to a major ecosystem with around 700 companies, challenging traditional banks. Firms like Nu, Ualá, and Klar are now joined by new CNBV-approved entities. Despite the sector’s growth, challenges remain, including high loan costs and the complexity of regulations. As fintechs expand, traditional banks are adapting by launching their own digital services. The sector’s future will depend on innovation, regulation, and market sustainability.
Other news
Latam FinTech Hub, 08/13/24, Staff: Krealo invirtió en Aviva, la plataforma financiera phygital mexicana, para seguir impulsando el ecosistema FinTech de la región
Retailers Magazine, 08/14/2024, Staff: Las FinTech B2B redefinen el ecosistema financiero en México
LatAm FinTech News
Paytech Yuno integrates Nequi into its platform to benefit more than 20 million Colombians
Paytech Yuno ha integrado Nequi, una popular plataforma de billetera digital en Colombia, a su ecosistema. Esta integración busca facilitar pagos y transacciones para más de 20 millones de colombianos, ampliando las opciones de pago digital y mejorando la accesibilidad financiera en el país.
Latam FinTech Hub, 08/12/2024, Staff: Paytech Yuno integra Nequi a su plataforma para beneficiar a más de 20M de colombianos
Nu surpasses half a million users in Colombia with its savings product
Nu, a Brazilian fintec Klarna Nears Picking Goldman as Lead Bank for US IPO h, has reached over half a million users in Colombia thanks to its savings product. This expansion reflects the growing acceptance and trust of Colombians in the digital financial solutions offered by the company, highlighting Nu’s rapid growth in the Colombian market.
Latam FinTech Hub, 08/15/2024, Staff: Nu suma más de medio millón de usuarios en Colombia con su producto de ahorro
Other news
FinTech Futures, 08/13/2024, Cameron Emanuel-Burns: Nium looks to expand presence in LatAm with new licence applications
Latam List, 08/13/2024, Sara Delgado: Credit Saison compromises $200M to back startups in Brazil and Mexico
Global FinTech News
Klarna Nears Picking Goldman as Lead Bank for US IPO
Klarna, the Swedish FinTech company known for its buy-now-pay-later services, is close to selecting Goldman Sachs as the lead bank for its upcoming U.S. IPO. This move highlights Klarna’s ambitions to expand its presence in the U.S. market and comes at a time when the company is seeking to boost its valuation and establish a position in the public markets.
Bloomberg, 08/14/2024, Katie Roof: Klarna Nears Picking Goldman as Lead Bank for US IPO
US FinTech Tally to shut down after failing to secure “necessary funding” to continue operations
US FinTech Tally is closing its doors after struggling to secure the necessary funding to sustain its operations. The company, which provided financial management services, made several attempts to attract investment but was unable to obtain the required capital. As a result, Tally will shut down, marking the end of its operations and leaving its future uncertain.
FinTech Futures, 08/13/2024, Cameron Emanuel-Burns: US FinTech Tally to shut down after failing to secure “necessary funding” to continue operations
FinTech Futures, 08/12/2024, Cameron Emanuel-Burns: Future FinTech Group promotes Hu Li to CEO
Other news
FinTech Futures, 08/14/2024, Cameron Emanuel-Burns: Experian snaps up behavioural analytics firm NeuroID
FinTech Futures, 08/13/2024, Cameron Emanuel-Burns: Scotiabank buys 14.9% stake in KeyCorp for $2.8bn
FinTech Futures, 08/12/2024, Cameron Emanuel-Burns: Future FinTech Group promotes Hu Li to CEO