LATAM Fintech | 2021 #3
“In Brazil today there are more than 60 million people who cannot be approved for a traditional credit product because they do not have a history,” said Christina Junqueira, co-founder of Nubank.
Because of this, in addition to providing an opportunity for the citizen to create a financial history, the company will make the Nubank card more accessible for those enrolled in CPF.
The new proposal allows adding funds to citizens to make purchases in several establishments. The goal is to give customers an opportunity to build a positive track record with digital banking. Link here.
Also, to fuel its early-stage business in Mexico, Nubank’s unit in the Latin American country is receiving an infusion of $135 million, Bloomberg LP reported.
Brazil-based Nubank is providing its Nu Mexico with a $70 million infusion of funds. In addition, Bank of America, Goldman Sachs, and J.P. Morgan Chase will offer revolving credit lines with a $65 million value, Bloomberg reported, citing its interview with General Manager Emilio Gonzalez.
Gonzalez said that it is probable that Nu Mexico will garner additional infusions next year and after that time. He also noted that Nu Mexico would consider purchases that could increase its foothold in Mexico but that there aren’t currently any specific companies Nu Mexico is thinking of buying.
👉 Read more here.
Also, Nubank announced the hiring of Matt Swann as Chief Technology Officer.
With over 25 years of experience leading Software and Product Engineering teams in tech companies including Amazon and Booking as well as vast experience leading high-scale global companies including Citibank, Oracle, and Motorola, the executive joins Nubank with the goal of consolidating the company’s growth and keep pushing the boundaries of innovation in the sector.
👉 Link here.
Cora, a São Paulo-based technology-enabled lender to small-and-medium-sized businesses, has raised $26.7 million in a Series A round led by Silicon Valley VC firm Ribbit Capital. Link here.
During the past year, Ualá quintupled bill payment volumes and sextupled the amount of money transferred digitally into its online accounts in its native Argentina. The company launched in Mexico last year and reached 100,000 clients in a third of the time it took in its home market. Link here.
Also, Ualá plans to acquire Wilobank, the country’s first digital bank. The acquisition would help Ualá, which gives unbanked consumers access to financial services by linking a prepaid card to their mobile app, expand and reach more customers. Link here.
Latin America’s e-commerce powerhouse MercadoLibre Inc, which has grown exponentially during the coronavirus pandemic, will double its workforce across the region to handle the surge in online purchases. Link here.
As cryptocurrencies keep gaining adoption in Argentina, there are discussions on how the national regulatory bodies should regulate the industry. The Central Bank of Argentina (BCRA) seems to have taken a step forward in making the picture clearer. According to Infobae, the BCRA asked domestic banks to forward them information about its customers who deal with bitcoin (BTC) and perform any other kind of crypto transactions. Link here.
FinanZero, a Brazilian online credit marketplace, announced that it has closed a $7 million round of funding. It has raised a total of $22.85 million to date. The real-time online loan broker allows people to apply for a personal loan, a car equity loan, or a home equity loan for free and receive an answer in minutes. Link here.
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This ends my weekly LATAM fintech newsletter. Thank you for reading to the end! If you liked it, I invite you to like, share and/or leave a comment below.
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Regards,
Marcel van Oost