Every week, Techfoliance highlights four promising Fintech start-ups in LATAM in various verticals: Digital Banking, Payments, InsurTech or Investment. In this weekly FinTech mapping we have Trigg, Mimoni, Destacame and Albo.
Trigg
Triggis a Brazilian-based Fintech that has developed a mobile payment solution to help people better manage their money and let them cashback 1.3% on each purchases.
Mimoniis a Mexican-based Fintech that has developed an online platform that provides its users with personal loans. It allows people to apply for loans by filling and submitting an online application, and uploading the required documents.
Albo is a Mexican-based Fintech that has developed mobile banking and financial service solutions. The start-up provides users with an International MasterCard to pay anywhere they want and a mobile app to better control their savings.
Last 2016, The Central Bank of Argentina (BCRA) announced the launch of its new payment strategy, bringing together traditional players, Fintech start-ups or regulators.
There is of course much more to be done but the first results and the change of mindset that emerged from the BCRA’s proactive approach is showing very promosing signs for the banking industry in Agrentina.
The BCRA has been working around three main topics to promote financial inclusion and reduce the use of cash in the country: 1/ Building comprehensive payment methods; 2/ Creating transversal technologies and systems, and 3/ Providing credit and alternative savings solutions.
As stated by Emiliano Porciani, digital manager at Banco Galicia, and member of the working group:
“Regarding the transversal technologies and systems, the open bank is being promoted in order to generate interoperability among all entities that are part of the financial system.”
Salvador Calogero, country manager of the 4Finance credit fintech, also explained:
“We are working on standards such as APIs to be used as a connector to let third-party providers access clients’ data.”
Paula Arregui, Senior VP Product at Mercado Pago, who has been working on payment methods, said:
“We made a series of proposals to improve the Debin (Immediate Debit method) that was first introduced by the BCRA. More recently, we also have been working on the adoption of QR code standard to allow payments through e-wallets.”
Another interesting challenge that the BCRA is trying to address is the digital onboarding process to create new ways for people to open an account.
“The physical signature is no longer required which allowed us to launch Galicia Move to open a banking account just with a selfie,” as Emiliano Porciani said.
The BCRA is also working with the National Registry of Persons (RENAPER) to remotely validate the identity of a user using biometric facial or finger data.
Many believe that blockchain and bitcoin represent a huge opportunity for financially excluded people around the world to access banking services. Here is an exemple with Moeda in Brazil.
About Moeda
Moeda is a US-based Fintech that has launched a cooperative banking system powered by blockchain and a cryptocurrency called MDA.
To date, the platform offers various financial services to underbanked entrepreneurs in Brazil, such as peer-to-peer payments, peer-to-peer remittance, micro business loans as well as crowdfunding.
In a recent interview delivered to Forbes, CEO Taynaah Reis said:
“The cooperative structure is common in Brazil. For now, our focus is made to women-owned enterprises who can receive interest rates of 15% with Moeda, compared to the 120% or so they would usually get from other lenders.”
Using the blockchain can bring back the level of trustand transparency between rural entrepreneurs and investors to support social enterprises across the region. In addition to the technology, Moeda also provides personalized assistance to help women entrepreneurs grow their business.
Ambition matrix
The company already allocated $10 million in 18 projects among the $20 million raised last year. Interestingly, we also learn that the vast majority of the 841 investors who have contributed on the platform are coming from China.
Moeda’s ambition is to fully digitize the investment process so that individual and institutional investors can make direct investments of its cryptocurrency MDAs into social companies.
Through a mobile app, investors will be able to invest by buying the MDA tokens. On the other side, entrepreneurs in underserved areas will receive the loan in MDA and exchange it with the local currency.
Nequi is a Colombia-based Fintech that was first created by Bancolombia, one of the biggest bank in the country, to provide a fully digital banking experience to customers.
Nequi is said to be the first neobank in Colombia, in other words, a new generation of bank that uses technologies to improve customer experience and let people open an account or better manage their savings over time.
Even though Nequi is owned by Bancolombia, it is completely independant which means that customers can open an account without being affiliated to Bancolombia. The company likes to describe itself as the Spotify or Netflix of finance.
In a recent interview delivered to La Republica, Angélica Mancilla, director at Nequi said:
It is a modern way of breaking with traditional schemes, avoiding old procedures. Instead of keeping their money at home, people can manage their savings on cell phone, fill-in services like DirecTV, etc. By doing so, we contribute to democratize the use of finance.
Anyone older than 13 years old can open an account at Nequi by downloading the mobile app, in just a matter of seconds and for free. The onboarding process and KYC has been designed in such a way that it makes it super easy for customers to open their account, using facial and voice recognition.
Nequi is also relying on a collaborative approach, by asking its customers what type of financial products they would need and how they would like it to be delivered.
The company’s ambition is to reach 650 000 accounts by the end of the year.
Ualá is an Argentina-based Fintech that allows thousands of people access financial services or products and manage their savings directly from their mobile.
In most Latin American countries, less than 50% of the adult population has access to financial services. The complexity for unbanked people to open an account led to the development of a new generation of players that aim to better serve people’s expectations, in a simple and more efficient way.
“Ualá is a prepaid card, not a bank card. It’s part of the Mastercard network and you can top up with cash without the need of bank account. You can manage your money, transfer and pay with your app and your card. You can receive real-time notifications of all your transactions and make immediate and free transfers to other users who also use the app” explains Rafael Soto, CEO of Ualá.
The card does not charge issuance or maintenance costs. It allows two free withdrawals per month, from Argentina’s two main ATM networks, thus making it accessible for the unbanked. In addition to this, the account is also available for people of over 14 years old. “Users under 18 years old must have the authorization of an adult.” Targeting a new segment unexplored by banks.
Founded by Pierpaolo Barbieri, executive director of Greenmantle, Ualá has the support of important international investors such as Soros Fund Management by George Soros, investment bank Jefferies, Point72 and Bessemer Venture Partners, among others.
I met with Rafael few weeks ago in Buenos Aires and, in reference to the company’s ambition, he told us:
“We want our users to have full control of their finances with Ualá. Over time, we want our users to pay their bills, obtain credit and make investments with Ualá, always in an efficient way and focused on the real needs of our clients.”.
Mobile app Uala
With an impressive team composed of former directors and managers of companies such as Citi, JP Morgan, Google, Santander and Credit Suisse, UALÁ already delivered 40,000 cards in of the first months. The technological development is 100% made in Argentina, reflecting the potential that the country has in the industry. The start-up follows closely what is going on in Brazil with Nubank or Monzo in UK, where the business model was validated and a quick adoption was possible.
Taking Nubank’s success in Brazil as an example, the implementation of alternative technologies coupled with the need for security and financial education, paved the way to effective rapid growth in payments.
Argentina is accelerating the modernization of its financial system, looking to compete with other countries in the region to promote financial technologies.
Every month, Techfoliance highlights three closing rounds made by Fintech start-ups across LATAM. In this monthly FinTech fundraising radar we will focus on Brazil with QueroQuitar, Creditas and Koin.
QuieroQuitar
QuieroQuitar! is a São Paulo-based Fintech that has launched a marketplace to act as an intermediary to connect debtors and creditors in a fast and easy way. To date, there are more than 3 million registered debtors on the platform.
Creditas is a São Paulo-based Fintech that has launched a digital lending platform focused on secured lending to tackle the high borrowing cost problem in Brazil. To fund its private individuals loans, the company gather both investors and financial institutions.
Fund raised: R$165 million
Investors: Vostok Emerging Finance (VEF), Kaszek Ventures, Quona Capital, QED Investors, International Finance Corporation (IFC) and Naspers
Koin is a São Paulo-based Fintech that has developed a payment solution to fund online purchases. The objective is to improve people’s lives by democratizing access to consumption. The entire check-out process is done without the need to provide any financial data. For merchants, KOIN is an innovative payment option that offers online credit in a differentiated way to target new consumers and increase sales.
Fund raised: R$15 million
Investors: International Finance Corporation (IFC), Speedinvest
