This week saw a spike in layoffs, with Nubank, Belvo and Provu announcing job cuts. Bradesco launched a global account, while more tech companies enabled Pix payments outside Brazil. In addition, Marcelo Claure unveiled a new investment company with US$500 million to finance Latin American startups.
All this and more in our weekly summary.
#TopStory
New wave of layoffs hits LatAm fintech
Redundancies in Latin America’s fintech sector have spiked again, in a sign that the industry is still a way off the road to recovery.
Nubank, Belvo and Provu fired almost 400 people in the last two weeks in an effort to cut costs and redeploy cash to operational areas.
Globally, more than 200,000 number of jobs have been lost in the tech sector as economic growth loses steam and saps investor appetite for risk.
Belvo, an open finance fintech, laid off about 30 workers, representing 17% of its workforce, due to the lack of access to capital, company sources told iupana. The countries affected include Colombia and Brazil.
“The company took the decision because we’re focused on making our operations more efficient, reducing costs and adapting to current market conditions,” said one of the sources. One of the people fired in Colombia said the company attributed its decision to the lack of capital for startups.
Nubank, for its part, cut 296 jobs within its Brazilian operations area as part of a move to centralize its product-focused teams. The digital lender said it doesn’t anticipate further redundancies, adding that it will maintain the current pace of hiring. The announcement surprised the market, after the fintech posted a record net profit in the first quarter of the year.
Meanwhile, Provu, a Brazilian payment and credit fintech, fired 70 workers, citing the economic climate and an internal reorganization.
#StrategicMoves
Bradesco plans global account
Brazilian bank Bradesco will launch a global account with a debit card, as it seeks to compete with Wise or Revolut for customers looking to make transactions in multiple currencies. The global account trend is something we explored in a recent iupanaExclusive.
The bank also said it will capitalize Bradesco Bank in the US with a US$230 million investment as it looks to expand its offering of checking accounts and credit cards.
International payments with Pix
Argentine stores that use global payment solutions provider Fiserv will be able to accept payments from Brazilian tourists using Pix, Brazil’s instant payment platform. In addition, Brazilian lender Banco Rendimento teamed up with Inswitch, a digital payments platform, to enable customers to make payments with Pix when they’re overseas.
Binance and Vita Wallet team up for international transfers
Crypto exchange Binance established a partnership with Vita Wallet, a fintech offering international transfers, that allows the wallet’s clients to add stablecoins to their accounts. The service will be available in Argentina, Mexico and Chile.
Also…
- In Mexico, Plata Card tapped technology provider Galileo for support with issuance of its credit card.
#Investments
Former Softbank exec launches US$500M fund
Marcelo Claure, a former chief operating officer at Softbank, established a new investment firm, Bicycle Capital, with the goal of raising US$500 million for a Latin American startup fund. The firm says US$440 million has already been committed. Former Softbanker Shu Nyatta is managing partner.
#People
Nubank has new country manager in Colombia
Nubank appointed Marcela Torres its new CEO in Colombia as it looks to expand its product portfolio in the country. Torres previously served as Uber’s operations leader for the Andean region.
#iupanaExclusive
Pichincha Peru is actively developing its open banking area, not only because it recognizes that it’s a global trend but also because it’s looking to monetize services to third parties. As a result, it’s looking for allies, suppliers and regulatory solutions.
- Pichincha Peru will give regulators an open banking proposal as its strategy matures.
- The lender aims to consolidate of all of its customers’ bank accounts in its app, however, it recognizes that for that it needs to forge alliances with other institutions.
- Pichincha Peru, a subsidiary of Ecuador’s Banco Pichincha, is taking steps to monetize its app.
Learn more about Pichincha Peru’s restructuring and its efforts to win a slice of the open banking market in this week’s iupanaExclusive.