Fintechs make dash for remittance cash
The decision by Ualá to enter the remittance vertical in Mexico through an alliance with local lender ABC Capital is part of an emerging trend in LatAm, where a handful of fintech companies have entered the market.
The competition for a slice of the region’s massive money transfer movement, which totaled US$131 billion in 2021, has attracted the global fintechs such as Revolut and Wise, which are looking to lure customers with faster and cheaper remittances. And everything indicates that new players will continue to explore the vertical.
“International remittances in Latin America have become a relevant market,” Tomás Bercovich, CEO and co-founder of Global66, a fintech specialized in this segment, told iupana. Traditional banking and its virtual channels fulfill the need for local services such as digital wallets and payments “but fail to satisfy the
The average cost to send US$200 to Latin America is 5.6%, according to the World Bank (WB). The multilateral lender forecasts 9.1% growth in remittances to LatAm this year.
Globalization and greater access to
“Now people are in constant movement, traveling, migrating, which makes this type of service increasingly necessary,” he says.
Among companies warming up on the sidelines is Chek, Banco Ripley’s digital wallet in Chile, which plans to launch a money transfer service in the coming months.
We will explore Chek’s remittance proposition in our iupanaExclusive on Monday.
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EBANX goes to Africa, sells Juno client portfolio
The Brazilian unicorn EBANX has entered the African market to offer its financial solutions. The continent is growing rapidly, and there are parallels with Latin America a decade ago, says the company’s CEO, João Del Valle. Meanwhile, the Brazilian unicorn sold the client portfolio of its Juno subsidiary to the fintech iugu, a payment firm focused on collections. EBANX acquired Juno in October 2021.
Fintech Magalu authorized as payment initiator
Brazil’s Fintech Magalu received authorization from the Central Bank to function as a payment initiator via Pix in the area of open finance. The solution was integrated into Kabum!, an e-commerce business acquired by Magalu last year.
Bradesco explores 5G to improve UX
The Brazilian bank Bradesco sealed alliances with Claro and Embratel to test 5G technology to improve user experience. The bank hopes to reduce latency times for customer service in digital channels and aims to process large volumes of data in real time.
Thomson Reuters in tie-up with Modal
Information giant Thomson Reuters launched a digital banking
Nu focuses on the NYSE
Nubank announced that it will no longer be a listed company in Brazil and will become a publicly listed company only on the New York Stock Exchange. This takes place a few months after the initial public offering of fintech shares. According to the statement, the objective is to “maximize efficiency and minimize
In Peru, the stock market regulator proposes a new risk management system for the companies it supervises. This measure will put an end to the self-regulation of crowdfunding.
In Chile, Banco BCI unblocked the accounts of the exchanges Buda.com and CryptoMKT following an agreement with the
Also in Chile, the Senate’s Finance Committee approved the fintech bill and it is ready for a vote on the floor of the chamber. The legislation is expected to be enacted this year.
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Finaktiva raises US$25 million in debt
Colombian SME lending fintech Finaktiva obtained funding in a debt transaction, with participation from local banks and the Swiss fund responsABILITY. The proceeds will be used to finance lending to more than 1,200 local businesses.
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Nubank: Adrian Cockcroft joins as tech advisor
Adrian Cockcroft is Nubank’s new tech advisor. He has 40 years of professional experience in tech companies, including Amazon and Netflix.
Visa in Brazil: Leonardo Silva assumes direction of Open Finance
Leonardo Enrique Silva was appointed senior director of open finance at Visa in Brazil. Silva previously worked at Serasa Experian and Mastercard, in the areas of technology and products.
This week, Argentine wallet company MODO gives us an update of its payment technology to create a plug and play product that centralizes and streamlines the services it provides to banks. We spoke with Pablo Scoglio, the platform’s product director, who says the firm is exploring developing technology for a buy now, pay later product if Argentine banks require it.
Learn about MODO’s next steps and the details of its latest product proposal in our exclusive interview.