Delt.ai uses cryptocurrency for traditional credit
Delt.ai, a Mexican startup focused on business management and services, plans to use cryptocurrency to help fund its portfolio of SMEs loans—an example of how decentralized assets are gaining ground within the financial industry.
The fintech received US$25 million of stablecoin financing through TrustToken’s TrueFI blockchain finance marketplace, which is a platform for generating asset-based tokens.
“In the quest to bring the most advanced technology to traditional finance, we needed sophistication and at the same time it had to be easy, scalable and with good rates. The crypto industry meets those requirements, that’s why we chose it,” José de la Luz López, the startup’s CEO and founder, tells iupana.
While many banks and fintechs closely watch the regulatory decisions to provide clarity on the gray areas that characterize crypto, the issue of cryptocurrencies trading regulation isn’t a concern for Delt.ai.
“There’s no change in how you lend to customers, only in funding. This isn’t a regulatory innovation, it’s all very traditional,” says López, noting that customers receive credit in Mexican pesos.
“We are not a crypto company. We don’t plan to offer this type of product,” he adds
Revolut seeks banking license in Mexico
British neobank Revolut is seeking a banking permit in Mexico and doesn’t exclude the possibility of speeding up the process by way of an acquisition. “We don’t rule out anything, but for now we are going the organic route,” Juan Miguel Guerra, general director of the neobank in Mexico, told iupana. A banking license would allow Revolut to offer a wider range of financial products than if it operated as a fintech, says Mexican lawyer Leticia Pelayo
N26 branches into “fincare” in Brazil
The German digital bank N26 has partnered with Brazil’s financial planning platform GFAI, in a bid to strengthen its position in “fincare,” in which it offers users advice as well as to financial services. GFAI will participate in the design of Insider, an app that N26 plans to launch this yet.
Strike two for crypto regulation in Peru
The draft framework law for commercializing crypto assets in Peru has received a second warning, this time from the Superintendency of Banking, Insurance and Pension Fund Administrators (SBS).
The SBS issued an “unfavorable opinion” of the
bill, saying that virtual asset exchanges aren’t within its competency since it only oversees regulated financial companies.
The country’s central bank (BCRP) had previously said that cryptocurrencies “do not constitute legal tender” and therefore it doesn’t regulate them. However, neither regulator has expressly prohibited the use of crypto assets… Did someone mention gray areas?
The SBS recommended that securities market regulator SMV ought to issue an opinion on the draft legislation, considering that virtual assets are a high-risk, speculative investment.
Should the SMV come out against the bill, which was proposed by a small, opposition party, getting it passed by congress could prove difficult.
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SoftBank: Not all fintechs will survive
Felipe Fujiwara, fintech investment leader at SoftBank Latin American Fund, shared his view on the sector this year in an exclusive interview with iupana. Some highlights…
- More fintech acquisitions are coming: “Fintechs attracted a lot of capital from investors during the last year, but not all of them have the potential to become large companies.”
- With interest rates rising, credit fintechs will have to bear at least part of the higher cost of funding.
Find out more in this week’s iupana Exclusive.
#Four questions with… Oscar Salas
Country head for Clara, Peru
What piece of advice most impacted your career?
‘Always listen to your first 10 customers.’ It’s important to value the first customers who trust you, always listen to them and keep them with you.
What challenges does the region still face in achieving true financial inclusion?
There’s still the challenge of financial education. We must understand that technology does not reach everyone. For example, not everyone has a smartphone. We must resolve that.
We must use alternative information to be able to provide our customers with much more than just credit, which
does not generate financial inclusion. Not just access to credit.
What is the main challenge that digital finance must overcome?
The challenge is not only to build a good user experience but also to offer a solid financial product. At the end of the day, the financial aspect is the most important.
What differentiates fintech within the financial industry?
During the pandemic, fintechs have proven their ability to adapt to any context. In addition, it’s become evident the possibility that its reach, with respect to users, is much greater than other financial institutions.
Oscar Salas is Peru CEO at Clara, a fintech that offers solutions for SMEs. Previously, he worked at Kushki, Afluenta, Interbank and Santander’s PagoNXT.