MVO BLOG
REPORT
Despite its recent dip, 2021 was a breakthrough year for crypto, with its market capitalization rising by 188% to reach ~$3 trillion in November 2021.
Crypto’s profile and growth to date has derived from its utility as a store of value, but we are finally starting to see its potential as a ‘medium of exchange’.
👉 Read the full article by Flagship Advisory Partners here
👀 NEWS HIGHLIGHT
Bnext, the Spanish fintech created in 2017 to be the alternative to traditional banking, uses the blockchain technology of their investor Algorand, one of the few decentralized platforms exclusively focused on the exchange of capital worldwide, to develop financial products as well as reduce execution times and costs.
To offer global and instant transfers between different local currencies, Bnext bets on the Algorand blockchain.
Bnext, after exploring the possibilities that blockchain and decentralized finance offer to build better, cheaper, faster, and more accessible products, is immersed in international expansion, mainly in the Latin American market.
👉 Read the full post here.
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📊 INFOGRAPHIC
Diversification has always been a pivotal aspect of Facebook’s innovation strategy, and it has held a long-standing ambition to add payment services to its portfolio.
One of Meta’s earliest attempts to foray into the finance industry can be traced back to its partnership with American Express in 2016, where it provided the bank’s card holders with an AmEx bot in the Messenger app.
In this WhiteSight article by Sanjeev Kumar and Risav Chakraborty they explore some of the key events that shaped Meta’s journey in its quest to disrupt the payments industry.
👉 Read the full Whitesight article here
📰 ARTICLE
Amazon has reached an agreement with Visa to accept its credit cards across its network, ending a standoff between the two that threatened to disrupt e-commerce payments and deal a blow to the U.S.-based payments processor.
Details of the deal were not disclosed but Visa and other payments cards have faced increased pressure about their fees as more shoppers have turned online during the pandemic. The spat had highlighted the growing clout of retailers in the fee battle.
Amazon had said in November it was considering dropping Visa as partner on its U.S. co-branded credit card, after earlier confirming it would stop accepting Visa credit cards in the UK because of high transaction fees.
👉 Read the full Thomson Reuters article here
👨💻 BLOG
Innovation and investments have been the key trends in the WealthTech industry over the last decade.
Its recent claim to fame with the high-value mergers and acquisitions is driven not only by incumbents like Goldman Sachs, JPMorgan Chase, and Charles Schwab, but also by FinTech players such as SoFi, Acorns, and NuBank. While the financial details of most of the deals remain undisclosed, the sheer size of the acquirers has been sufficient to garner attention.
In this post, WhiteSight is taking a closer look at some of the mega mergers and acquisitions that the sector witnessed in recent year.
👉 Read the full Whitesight article here
💡INSIGHTS
80 million new Neobank users will be added this year in Colombia.
In Colombia, the term neobank doesn’t formally exist. However, in 2019. congress approved a fast track of tailored licenses for emerging FinTechs. Currently, FinTechs are already providing services within the Latin-American nation.
According to the Bogotá Chamber of Commerce, neobanks are an attractive option instead of current traditional banking services.
News media platform La Republica did a survey of the leading fintechs: Nequi, Daviplata, Lulo Bank, Nu, and Ualá. Together these companies would have more than 80 million users this year.
👉 Read the full article (in Spanish) here.
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NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
☕️ REGIONAL HIGHLIGHTS
⭐️ Transact365 launched its global payments platform in Latin America (LATAM), making it one of the largest alternative payments platforms in the region. Link here
⭐️ Plurall says it is applying technology, data science and a “hyper-focus on customers to deliver mission-critical financial services” to entrepreneurs and SMEs left out by digital-first banking and financial services. Link here.
⭐️ Mercado Pago Point is the first company with a payment transaction initiator (ITP) license to have the service operational. Link here
⭐️ Trace Finance announced a $4.3 million seed funding round. Link here
BRAZIL
Nubank: a brand or a ‘lovemark’? The Brazilian fintech was able to attain an extraordinary market footing due to its business strategy, one which prioritizes growth and client base expansion over profits.
Yet, one of the main (and often overlooked) drivers of this successful endeavor has been the firm’s remarkable ability to cultivate and maintain a loyal client base that is fond of their services.
This loyalty is intrinsically linked to the firm’s customer service and marketing strategy.
The main points of contact between Nubank and its customers are through the company’s online chat and customer representatives. Studies have identified that NuBank’s virtual representatives do not utilize traditional scripts, but rely instead on the display of authentic, humorous, outgoing, but effective interactions. In this way, the company tries to ensure that almost everything can be solved via the application, and that call center employees are trained to find the most efficient solutions without the need to put the conversation on hold or request the intermediation of other agents.
👉Read the full Efma article here
COLOMBIA
Colombia has been considered one of the most dynamic markets in the world, in terms of risk capital.
Colombia has been considered one of the most dynamic markets in the world, in terms of risk capital. VCs have taken note and are now aware of the innovation and entrepreneurial spirit of the Latin-American nation.
The Soonicorns - companies that are soon to become unicorns- are a handful of highly valued startups that have grown successfully since their inception. According to the last report of Soonicorns, these FinTechs are the ones to watch out for, because that they have all the potential to become the next Colombian Unicorns. The list includes companies such as Bold.co, Addi, and Tangelo.
👉 Read the full Latam Fintech Hub article here
MOVERS & SHAKERS
Belvo appoints David Ballesteros as New Country Manager in Colombia. He will lead all commercial and growth efforts in the country. Link here.
If you are a fintech startup and have over 100 questions send me an email, maybe I can answer a few.