Hola amig@s fintech,

It has been an eventful week in the region, with significant developments such as the vote for drafting Chile's new Constitution, the end of Title 42 in the US (which impacts Latam migration), and the continuing rise in Argentina's inflation rate. I must say that alongside my interest in fintech, I am also passionate about government affairs and political science. Clearly, combining these two fields makes me a Latin American woman who is never bored.

Please find below this week’s front page of Latam fintech news. If you’re reading this on the web, we’d appreciate your support by sharing and subscribing.  

PS. Happy Mother’s Day in South America and the US! 💐

PPS. friendly reminder for those of you in Bogotá 🇨🇴 this Wednesday, May 17th!  Join the TWIF Latam community at Monaco Rooftop for a spring happy hour sponsored by CIM, AWS & Visa.  Register here 👉  https://lu.ma/BOG517!

💛 Until next weekend. Até a próxima!  - Lorena

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📊 Stat of the Week

📖  Read of the Week

As NTT Data’s Insurtech Global Outlook 2023 report mentions, embedded insurance, a rapidly growing distribution model facilitated by cloud-connected platforms and open APIs, could represent 25% of the total market worldwide and generate over $700 billion in gross written premiums by 2030. This presents a $3 trillion market opportunity led by insurtechs and tech giants.

💸 Venture Financing

No fintech financing deals announced this week 👀

💰 Venture funds

🌐 Better Tomorrow Ventures (BTV) announced the launch of The Mint, a San Francisco-based fintech accelerator offering $500,000 in exchange for 10% equity to 6-10 startups in its three-month program starting August.  In Latam, BTV has invested in companies such as Clubbi, Divibank, Mendel, Super, and Trebol.

☯️ Exits

🤝 M&A - Financial Services & Banking

🇲🇽 Grupo México, a Mexican conglomerate that operates in mining, transportation, infrastructure, and manufacturing, is set to acquire Citigroup's retail banking operations in Mexico for $7 billion. As part of the deal, Citigroup will retain a 10% stake in the Banamex unit, and the stake may be sold to Grupo Mexico or other buyers in the future or listed on public markets. There were no comments by any of the companies’ representatives.

🚀 Product Launches & Partnerships

💻 Fintech

🌎Rapyd, the global payments network, and Belvo, the Mexican open finance data and payments platform, announced a partnership aimed to offer Open Finance experiences.This collaboration will provide businesses and developers with streamlined access to data, payment networks, and technologies, revolutionizing how they interpret data and manage funds.

🇵🇪 Minsait Payments, the European digital payment and processing provider, and B89, the Peruvian facilitator manager of financial assets and personal well-being, announced a partnership to serve the underbanked and to offer a cross-border solution based on digital payments, through a virtual prepaid card or a physical card for traditional commerce.

🇲🇽 Lemon, the Argentinian exchange, announced its launch in Mexico, enabling users in the region to send and receive cryptocurrencies without fees, interact with DeFi, and explore the NFT universe. The launch focuses on crypto functions initially, with plans to collaborate with existing crypto communities.

🇲🇽 Ualá Bis, the business arm of Argentine fintech Ualá, announced the introduction of payment solutions in Mexico, allowing businesses to accept card payments and receive instant transfers. Ualá Bis aims to simplify digital transactions for entrepreneurs in Mexico through its intuitive app.

🇨🇴 Pomelo, the Argentinean digital payment processing platform, and Mono, the Colombian neobank for SMEs, announced a partnership to provide innovative payment solutions and financial infrastructure to local businesses in Colombia. Pomelo will offer card solutions alongside Visa, enabling Mono and Sempli to facilitate seamless payments and credit transfers.

🇨🇴 dale!, the Columbian financial services app and Plurall, the Colombian platform focused on solo-prenuers, launched a digital microcredit program in Colombia, targeting small business owners affected by predatory lending practices. This initiative aims to address the increasing prevalence of informal lending, which saw a 75% rise in 2021.

🇧🇷 PicPay, the Brazilian digital wallet app, launched PicPay Open Finance, enabling users to integrate multiple bank accounts and credit cards into a single platform for  financial management, transfers, and payments without extra fees.

🏦 Financial Services & Banking

🇨🇱 The Chilean lending institutions MAF, Forum and Tanner, and Kavak, the Mexican online automobile marketplace platform, announced a partnership to offer used car loans. The startup's platform aims to provide Chileans with easier access to financing for pre-owned vehicles tailored to their credit profile within minutes.

📜 Policy

🇧🇷 The Brazilian Central Bank launched the pilot program for its Real Digital, the central bank digital currency (CBDC), inviting commercial banks to participate. The institution will select up to 10 companies for the first stage and up to 20 for the second stage, with payment providers and established fintech firms also being considered. Only institutions within the National Financial System Network will be eligible.

📰 Other News

🇧🇷 Conta Black, a Brazilian company that offers different financial services, appointed Fernanda Ribeiro as its new CEO. Ribeiro, who previously served as the company's co-founder and CCO, takes over the role from Sérgio All, who will become Co-CEO and chairman.

🇨🇱 The Chilean fintech association FinteChile and IF coworking, a Chilean coworking company, inaugurated the Fintech District in Chile to bring together and promote the fintech industry in the country, following the trend of other financial centers around the world.

🇦🇷 Carrefour, the supermarket chain in Argentina, and BSF, its financial services arm, launched a payment method aimed at attracting one million customers, especially the unbanked. The companies will offer a virtual prepaid Mastercard, which can be recharged at over 600 Carrefour locations, and it will have a benefits program that includes discounts, promotions, and personal loans.

🌐 Binance, the crypto exchange, launched Capital Connect, a new platform that connects institutional investors with cryptocurrency investment fund managers. The free service allows investors to efficiently gain exposure to the crypto market.

🌐 SoftBank, the Japanese tech investor, saw a 3.68% drop in its shares following a record loss of $32 billion in its Vision Fund tech investment unit. The loss was reported for the fiscal year ending on March 31st, 2021, and marks the largest annual loss in the company's history.

📚 Deeper Reads

Why is Latam struggling with fintech?

Investing In LatAm Insuretech: A Venture Capitalist’s Perspective

We’re close to peak pessimism around fintech

Digital banks and fintechs expand credit participation in the second half of 2022 (PO)

Higher interest rates are fostering a fintech comeback story

AI, with potential for banks (ES)

🦉 Tweet of the Week

Made in Latam with 💛 by Elena, Daniela, Christine, and Lorena.

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