This week, we report on the growing competition in the region’s market for interest-bearing accounts. Also, the allure of SME lending brings forth an alliance between Davivienda and Siigo in Colombia and spurs Albo’s purchase of Delt.ai in Mexico. In addition, Argentina’s Wenance is accused of fraud.
All this and more in our weekly briefing .
Read the main note here: Interest-bearing accounts: Fintechs vie to attract user savings
#Strategic Plays
Davivienda and Siigo use alternative data for SME loans in Colombia
Banco Davivienda and the accounting and admin software company Siigo have joined forces to facilitate access to SME credit lines in Colombia. Siigo will expedite processing using alternative data, such as electronic invoices and financial statements on its system.
Scotiabank Mexico launches new mobile account
Scotiabank México launched Scotia, an account that can be opened remotely through its mobile app and uses biometric data from the National Electoral Institute for onboarding. The bank said 54% of its customers currently use digital banking.
Albo acquires Delt.ai to boost SME lending
Mexican fintech Albo acquired local SME lending platform Delt.ai for about US$20 million. The move boosts Albo’s ecosystem, which includes debit cards, loans, and salary accounts.
Argentine fintech Wenance comes under scrutiny
Wenance is facing accusations of fraud from clients in Argentina, Uruguay and Spain. At least 130 workers were reportedly fired by the fintech as prosecutors investigate allegations it granted loans at usury rates.
Rappi finances restaurants in Colombia
Rappi launched a new program that offers loans to restaurants in Colombia via its app. Financial statements aren’t required when lodging applications and loan repayments are deducted from the sales that the restaurant makes using the food delivery app.
Also…
- In Chile, Tenpo introduced its digital credit card. The platform told iupana in May that it plans to become the country’s first neobank.
- In Brazil, TOTVS and Itaú Unibanco put the finishing touches to their joint venture, TOTVS TECHFIN, which will offer financial services to businesses. Itaú has a 50% stake in the company and will provide financing and know-how to spur the fintech’s growth.
- Israeli paytech Rapyd bought a large chunk of the payment provider PayU’s operations for US$610 million with a view to expanding in Latin America.
#Investment
Licify raises US$3.4M to expand in LatAm
Licify, a Colombian startup offering digital and financial solutions to the construction industry, raised US$3.4 million in a round led by Brick & Mortar Ventures and Accion Venture Lab. Other investors included G2 Momentum Capital. The company plans to use the proceeds for product development, alliances and expansion into new markets, starting with Mexico.
#People
Banco Volkswagen names CRO in Brazil
Banco Volkswagen in Brazil appointed Ricardo Paixão chief risk officer to lead its risk, collection and credit departments. Paixão was previously chief financial officer.
Provenir appoints global head of professional services
Provenir named Richard Kern senior vice president of global professional services. Kern will lead the delivery of the tech provider’s solutions to clients in more than 50 countries.
#iupanaExclusive
Buy, build or partner? Mexican banks Invex and Banregio have decided on in-house technological development to lead their digital transformation and leave “black boxes” behind. We asked the banks’ heads of innovation to lay out their game plans for the digital sphere.
- Invex has created 25 development teams to address product initiatives internally.
- The bak has opted to keep 90% of its technological capacity at its own facilities.
- Banregio says in-house teams came up with its pioneering spin-off, Hey Banco.
Find out why these two banks say no to technology partnerships in this week’s iupanaExclusive