4 FinTechs disrupting the Latin American Financial ecosystem

By Pavithra R

Latin America (LATAM) and the world are embracing the fight against the pandemic. Despite the various challenges the pandemic has imposed, the FinTech demand in the region has escalated. More and more financial institutions are coming forth, offering various digital financial services to combat COVID-19 stress. The article list 4 FinTechs transforming the financial space in LATAM.

Nubank 

HQ: Brazil

Nubank is a well-funded challenger bank in Latin America developing simple, secure, and 100% digital solutions for customer’s financial life. The FinTech launched its first product in 2014, a credit card with no annual fee managed entirely by a mobile application. In 2017, Nubank launched its proprietary loyalty rewards program (Nubank Rewards), as well as a digital account (NuConta) that is already used by more than 17 million people. In 2019, the company began testing its personal loan product and took its first steps in international expansion, opening offices in Mexico and Argentina.

Currently, the firm is standing at a valuation of more than $10 bn. The FinTech is backed by TCV, Sequoia Capital, Kaszek Ventures, Tiger Global Management, QED, Founders Fund, Goldman Sachs, DST Global, Redpoint Ventures, Ribbit Capital, Dragoneer Investment Group, Thrive Capital and Tencent.

Recently, the firm in partnership with Zurich insurance company Chubb launched Nubank Vida, a fully digital life insurance offering. The step marks Nubank’s entrance into the insurance market with a fast, seamless and personalized capability available to its 30M customers across Brazil. This year the firm entered the investments market through Easynvest acquisition and also acquired Plataformatec and Cognitect, in search of talent in software engineering.

Ualá 

HQ: Argentina

Ualá is a FinTech that is revolutionizing personal finance from an app and a card in Argentina. Argentine entrepreneur Pierpaolo Barbieri created and launched Ualá in October 2017 with the aim of improving financial inclusion in Argentina by offering an innovative, integrated, branchless, and low-cost experience. 

It is a personal financial management mobile app linked to a Mastercard prepaid card that allows users to conduct financial transactions. Through the mobile application, users can carry out a wide variety of financial transactions, including transferring money, paying bills, loading balance on prepaid cell phones, and SUBE transport cards, among others. The app also allows users to track expenses through an analysis tool. It no issuance, renewal, maintenance, and closing costs. The FinTech has issued 2.5 mn cards in Argentina, a number equivalent to almost 6% of the country’s population. Recently, the firm partnered with Galileo to expand to Mexico. Galileo is powering Ualá’s cross-border initiative and the company’s expansion strategies. 

Konfio 

HQ: Mexico

Mexican FinTech Konfío is committed to creating a new experience in financial services for SMEs. It offers digital banking and software tools designed to boost small and mid-size enterprise’s growth and become a strategic ally for small and medium-sized companies promoting the Mexican economy. The firm is focused on transforming financial services and helping strengthen businesses.

Konfio uses data for rapid credit assessment and offers agile credit and tools that allow owners to boost business growth. The FinTech helps companies to achieve economic growth through the access of credit solutions with a proprietary algorithm that combines data and technology to measure creditworthiness.

Neon 

HQ: Brazil

Neon is a Brazilian FinTech founded by Pedro Conrade with the mission to unite technology and design to redesign and simplify people’s financial experience. Neon was born with a clear purpose: to provide an accessible bank account to any Brazilian, placing user experience at the center of everything. The company started a revolution in the Brazilian market, which still had a lot of participation from traditional banks.

Recently, the firm raised $300 mn in Series C funding led by General Atlantic bringing its valuation to $1.2 bn. The increased demand for digital-based services amid the pandemic has accelerated Neon’s growth trajectory. The firm to meet the increasing customer demand has provided an alternative to in-person banking solutions and has seen a surge in investments, deposits, online purchases, and an uptick of 26% in new users since March.

Neon was launched in 2016 with a simple digital account. Since then, the company has expanded its product suite to include investment products, personal loans, and credit cards, among other new offerings and features.

Also, read: Global FinTech Use Cases in Financial services