REPORT
The 2023 Latin America Digital Transformation Report
At the forefront of the world, Brazil's financial sector has turned money from paper into pixels and is now serving as an example for other countries to follow suit.
In a digitally-fluid financial system, where new accounts are easily created and credit is quickly accessed, new priorities emerge, among them a battle for principality and a heightened need to tame data to manage risk.
Download full report here
👀 NEWS HIGHLIGHT
JPMorgan Chase & Co has increased its stake in Brazilian digital bank C6 to 46% from 40%, the banks said in a statement, without disclosing the financial terms.
The banks said C6 had expanded its number of clients to 25 million from 8 million since June 2021, when JPMorgan bought its initial stake, and had added products such as auto loans.
📊 INFOGRAPHIC
Over the past decade, digital banking has surged in Brazil🇧🇷, a country with 290 million digital accounts for its 214 million people.
The landscape has been shaped by Brazil's booming economy, flourishing e-commerce sector, and regulatory changes from the Central Bank, such as allowing FinTechs to offer credits and introducing open banking and the Instant Payment System (PIX).
💡INSIGHTS
‣ Worldwide account ownership has reached 76% of the global population, up from 62% in 2014, but 1.4 billion people worldwide remain unbanked.
‣ Financial inclusion is vital for healthy economies and societies and is also a key component of meeting the UN Sustainable Development Goals.
🎤 PODCAST
Miguel Armaza interviews Pedro Conrade, CEO/Co-Founder of Neon, one of the largest digital banks in Brazil and Latin America, serving almost 20 million clients.
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
☕️ REGIONAL HIGHLIGHTS
⭐️ Revolut offers new service for greater financial inclusion in Latin America.
⭐️ Binance has decided to suspend its crypto debit card services in Latin America and the Middle East.
⭐️ Aquila transforms the LATAM fintech ecosystem through flagship acquisition of iuvity.
⭐️ Binance excludes Banco de Venezuela from P2P payments.
BRAZIL
Neon has reached a significant milestone by serving 26 million customers and accumulating a credit portfolio worth R$ 4 billion. Neon aims to become the leading platform for private payroll loans (crédito consignado) in the country.
PicPay recorded a profit of R$ 58 million, bouncing back from a loss of R$ 656 million during the same period last year.
XP Inc., in collaboration with Mastercard, has introduced a new global account and debit card that facilitates dollar-based transactions.
ARGENTINA
Itau Unibanco has signed a binding agreement to sell its business in Argentina to Banco Macro for about 250 million reais ($51.47 million).
Openbank signed an alliance with fintech GOcuotas to provide debit card financing in Argentina. Through this partnership, customers can purchase clothing, footwear, electronics, and cosmetics from multiple brands with interest-free installments.
COLOMBIA
Swiset has been selected by Tenity for its incubation and investment program in Zurich, Switzerland.
Google Pay has officially launched in Colombia, and users can now add their Nubank credit cards to Google's digital wallet for a seamless payment experience.
MEXICO
Mercado Pago has seen a 100% growth in small and medium-sized enterprises (SMEs) using its services in Mexico, signifying a steady advancement in the digitalization of money in the country.
PERU
Citi has made a strategic investment in Peruvian foreign exchange fintech Rextie. The investment will also see Citi’s FX technology integrated into Rextie’s currency exchange services.
Falabella Financiero has revealed plans to integrate features of its digital wallet, Fpay, into the Banco Falabella app in both Chile and Peru. This move aims to provide enhanced financial and payment solutions to their clientele.
iO, Peru's first neobank under the financial holding company Credicorp, has launched a unique credit card aimed at offering an innovative experience to users who are used to traditional banking.
CHILE
TraderPal LL has formed a strategic partnership with Vector Capital Corredores de Bolsa and Voultech, its technological arm for the region. This unique alliance aims to extend TraderPal's reach to more Latin American countries.
Finansystech is extending its horizons beyond its home borders. Their first expansion step has been to establish an office in Santiago, Chile, aiming to facilitate business transactions throughout Latin America.
If you are a fintech startup and have over 100 questions send me an email, maybe I can answer a few.