#Strategic Plays
Six digital banks apply for licenses in Mexico
Mexico’s National Banking and Securities Commission (CNBV) is evaluating at least 12 applications for banking licenses, six of which are from digital banks. CNBV’s president told Bloomberg Línea the first neobank to be licensed was the Banorte group’s Bineo. Several international banks are among those awaiting a license.
Also…
- Business management fintech Payana and the accounting software company Siigo established an alliance to offer joint digital solutions for pymes in Colombia. The partnership is part of a trend of fintechs and banks teaming up with business management solution providers to create predictive finance products.
- Colombian fintech Cajero.co introduced Cubo Cajero, a business-oriented solution that provides a QR code with various digital payment methods.
- Payment processor Paymentology announced plans to enter the markets of Chile and Argentina.
#FinancialResults
Creditas portfolio grows despite more cautious lending approach
Brazilian fintech Creditas expanded its loan portfolio by 59% in the last quarter of 2022, despite the increased cost of credit. The firm took a more conservative approach to portfolio growth in the quarter, due to more complex macroeconomic conditions in Brazil, including a steady rise in interest rates. The unicorn registered R$208 million (US$39 million) in losses, down from R$362 million in the same period of 2021.
PicPay posts quarterly profit, but annual losses continue
Brazilian digital wallet PicPay registered a profit of R$20 million (US$3.7 million) in the last quarter of 2022, an improvement on the same period of 2021, when the company posted a loss of R$516 million. For the full year, the company remained in the red, posting a R$693 million loss. PicPay expects to reach break-even point in mid-2024.
#People
Nubank names new CTO
Nubank appointed Vitor Olivier chief technology officer (CTO) and director of global platforms, in charge of positioning the company in the international market. The executive joined Nu as a software engineer in 2014.
#iupanaExclusive
This week, we spoke to fintechs affected by the SVB bankruptcy and describe how events unfolded and, more importantly, what lessons we can learn from a bank run that sent ripples around the globe.
- The fall of SVB and other U.S. banks triggered a scramble by startups in LatAm to find other institutions to hold their money
- Access to capital will continue to be the main industry challenge following the SVB debacle
- Experts warn that not all fintechs in the region will remain in business at the end the year
Want to understand the implications of the SBV bankruptcy for the fintech ecosystem? Read all about it in this week’s iupanaExclusive.