Hola amig@s fintech,

Just a quick note to thank all of you for reading us every week! We appreciate your input and suggestions on what interests you and how to get better, so please, do not hesitate to reach out. 

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.  

🌈 Until next weekend. Até a próxima!

• Lorena

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📊 Stat of the Week

During 2023, Mexican merchants processed over $109 billion in credit card transactions, equivalent to about 6% of the national GDP. Aggregators like Clip, Mercado Pago, and NetPay contributed significantly with a market share exceeding 7%.(Source). 

📖  Read of the Week

The report "Economist Impact: Reimagining Banking for the Digital Age" by Temenos explores how digitalization is transforming the banking sector. It highlights the need to innovate in customer experiences, improve operational efficiency, and adopt emerging technologies. The report emphasizes the importance of sustainability and collaboration with fintech companies as banks must adapt to changing expectations and offer personalized services to maintain their relevance in the market.

🦉 Post of the Week

🎙️ Podcast of the Week

💸 Venture Financing

💸 Equity

🇲🇽 Colors, the Mexican credit startup for LGTBIQ+ community, raised a $1.2 million round led by XY Booster. The company has partnerships with VISA and Círculo de Crédito. 

🇲🇽 Ximple, the Mexican microcredits for small and independent merchants and families, raised a $2.7 million Pre Seed round with the participation of BoostCapital Partners, Clocktower Technology Ventures, Graph Ventures, 99 Startups and Lotux.VC.

🇧🇷 Astride, the Brazilian-led US-based accounting startup, raised a $1.4 million round led by Kiara Capital to focus on the company’s expansion. 

🇨🇱 Retorna, tha Chilean migrant remittances startup, raised a $1.2 million investment round led by Fondo Impacta VC, with the participation of Amplifica, Morro Ventures and Colectivo Jaguara.

☯️ Exits

🤝 M&A - Fintech

🇧🇷 Nubank announced the acquisition of Hyperplane, the US-based data intelligence company. This acquisition aims to enhance Nubank's AI capabilities, integrating Hyperplane's advanced AI systems to provide deeper insights into customer needs and create hyper-personalized financial services. No further details of the transaction were disclosed. 

🚀 Product Launches & Partnerships

💻 Fintech 

🇧🇷 Pismo, the Brazilian core banking and card processing provider, announced it has updated its transaction authorization system to handle over 3,000 transactions per second per client account. The update will be rolled out to all clients in the next six weeks.

🇧🇷 Nubank and Lightspark, the US-based bitcoin infrastructure company, announced a partnership to enhance the Bitcoin transaction experience for its over 100 million users by reducing costs and increasing scalability. 

🇨🇱 Conectados, the Chilean digital wallet app, and Getnet, Banco Santander's payment network, announced a partnership to enhance the use of public and private benefits. They aim to enable thousands of people to use their ID cards as a payment method at various merchants within the Getnet network by scanning a QR code. 

🇨🇱 Propital, the Chilean proptech platform, announced the launch of a free app designed to enhance personal finance management. The app offers features like "total organization" for tracking assets and liabilities, personalized financial recommendations, and tailored investment opportunities, particularly in real estate. 

🇪🇨 Kunzapp, the Chilean software management platform, announced it has expanded to Ecuador, partnering with Kushki. The platform uses AI to review contracts and financial information. 

🇨🇴 Tpaga, the Colombian digital wallet provider, announced the launch of a new bill payment service via WhatsApp using PSE. This service aims to simplify digital bill payments with a conversational bot to guide users through the process.

🇧🇷 Grupo Bloxs, the Brazilian structured finance platform, and Bywise, the Brazilian blockchain solutions startup, announced a partnership to create ChainX, a blockchain network focused on the issuance of debt and securities. The partnership aims to integrate and digitize the capital market. ChainX is set to launch in late 2024.

🇧🇷 Velo, the Brazilian cross-border accounts provider, announced it plans to invest in Brazil to offer dollar-linked accounts using stablecoins. This solution aims to protect users from local inflation and allows spending in over 50 currencies with low fees. 

🇧🇷 OneBlinc, the US-based payroll-deducted financial products platform, announced it has launched operations in Brazil. This platform processes a wealth of alternative data points, enhancing credit decisions for banks, retailers, and fintechs in Brazil. 

🇧🇷 AmFi, the blockchain credit infrastructure platform, and Mercado de Recebíveis (MDR), the Brazilian receivables platform, announced a partnership to tokenize R$ 100 million in credit card receivables and invoices by the end of the year. 

🏦 Financial Services & Banking

🇧🇷 Claro, the Brazilian telecommunications company, and Fiserv, the US-based financial technology provider, announced a partnership to introduce the Bin card machine to Claro Empresas' portfolio. The initiative aims to streamline payment solutions for SMEs and marks Fiserv's first collaboration with a telecom operator in Brazil.

🇧🇷 Sicredi, the Brazilian cooperative financial institution, announced it has enhanced its Open Finance platform by introducing two new features allowing for easy money transfers from other financial institutions and the sharing of financial history via WhatsApp.

🇲🇽 Stripe, the US-based global financial infrastructure platform, and Construrama of Cemex, the Mexican building materials company, announced a partnership to enhance digital commerce within Mexico's construction sector. Over 1,100 Construrama dealerships and nearly 2,400 sales points across Mexico will now integrate Stripe's "Connect" product into their marketplace.

🇨🇴 Pronus, the Colombian investment bank, and Pix by C&M, announced a partnership to introduce secure, instant, and free financial transfers across all Colombian financial institutions. This move aligns with ongoing efforts by Colombia's Banco de la República to enhance financial technology infrastructure.

📜 Policy

🇧🇴 The Central Bank of Bolivia lifted the ban on crypto, allowing financial entities to make transactions with digital assets in the payment system.

🇵🇪 Peruvian's capital transport regulator (ATU) opened an opportunity for fintech companies to participate as sell operators and recharge cards for the mobility system. 

🇨🇱 U-Payments, the Chilean prepaid cards and processor company, was authorized by the financial regulatory agency (CMF) to operate as a transmitter of non-banking funds’ cards, through its subsidiary U-Pay Prepagos.

🇲🇽 Peibo, the Mexican subsidiary of BanPay, will begin the regulatory and authorization process to operate as a bank in Mexico. The company is now authorized as an Electronic Payment Funds Institution under the Fintech Law.

📰 Other News 

🇲🇽 Gabriel Coelho was named Innovation Director at Clara.

🇧🇷 Gustavo Danzi was named Chief Executive Officer at Acquio.

🇧🇷 Marcelo Bella was named Director of Banking Services at PicPay.

🇧🇷 Pedro Barreiro was named Director of Banking at Nomad.

🇨🇱 Laboratoria, the leading organization in training women in technology in LatAm, and Salesforce, the global leader in CRM with AI, announced a partnership to boost the employability of women in technology,  that will benefit 50 Laboratoria graduates and also companies looking for qualified talent in CRM technologies.

🔦 Spotlight on Ximena Alemán, Co-Founder & Co-CEO at Prometeo

Q. Three words to describe yourself?

A. Advocate, challenger, optimist. 

Q. What are you most excited about in fintech entrepreneurship in Latam right now?

A. We’re seeing tremendous strides to further develop financial infrastructure from both the public and private sector and as a result, more burgeoning fintech entrepreneurs take advantage of the favorable market conditions. 

Countries like Brazil, Chile, and Mexico have implemented regulatory frameworks that encourage the adoption of open banking. These initiatives have led to the creation of new financial products and services tailored to the unique needs of consumers, like in Brazil where payments platform PIX, initiated by the Central Bank four years ago, is rapidly emerging as the preferred method for making payments in the country. Another example is Colombia, which recently unveiled its roadmap for implementing open banking in the coming years. Prometeo's single API approach has been instrumental in these developments, offering differentiated connectivity across hundreds of financial institutions.

Q. How has it been for you to combine your experience in journalism and marketing and bring it to the fintech industry at a founder/CEO level?

A. As CEO of Prometeo, one of my responsibilities is to lead the relationship with investors as well as funding rounds. My experience working in marketing and journalism has given me an edge in being able to “read the room” and understand an audience at large. This has helped optimize our conversations with investors and my capacity to disseminate Prometeo’s mission concisely. My marketing background also gives our efforts leverage to grow quickly and effectively in the market, which I believe has been a major success factor for our recent launch in the US market. 

Q. What do you consider to be the main challenges for fintech entrepreneurs?

A. Despite the growth we have seen in recent years, barriers like infrastructure limitations in Latin America are slowing down fintech development, especially in rural areas. We also see several uncertainties with regional economics, as currency volatility and payment issues continue to increase risk. Cybersecurity is another challenge as political cycles, inconsistent legal requirements and trade regulations create challenges for entrepreneurs to scale their businesses and operate seamlessly across borders.  

To navigate these complexities, Prometeo has expanded into Chile and Mexico. In Mexico, we have achieved 100% SPEI bank coverage, facilitating comprehensive access to financial services. We have also recently announced the launch of our Bank Account Validation (BAV) offering for the US market. With this launch, Prometeo enables Latin American businesses to connect with 100% of US banks via one integration with a single provider and API.

Q. What advice can you give to female entrepreneurs looking to scale their startup?

A. Building a network is important, especially with advisors and peers who understand and support the unique challenges women face in business. Focus on strategic planning, including optimizing your operations, leveraging tech to streamline processes, and expanding your customer base. A team that aligns with your vision and objectives is also crucial to driving success. Finally, always advocate for your business.

Q. How do you feel about the fintech industry in Latam?

A. The fintech industry in Latin America is in a rapid growth stage. With a population exceeding 600 million, countries like Argentina and Brazil are experiencing a tech boom as nimble new fintechs expand their regional coverage and support more users across the continent. That being said, much of the focus in fintech has been on consumer-oriented services —helping individuals manage their money more effectively. Without a robust financial infrastructure to streamline connectivity with the banking system, fintechs will continue to struggle to integrate an estimated $34 billion in consumer value into the regional economy. 

In particular, open banking has been game-changing in Latin America, offering businesses greater agency in accessing the banking system. Platforms like Prometeo are making a significant impact on the credit market by promoting financial inclusion and improving risk management for lenders. The ability to access customers' financial information (with their authorization) enables the lender not only to approve credit but also to offer personalized rates or payment plans tailored to the customer's financial situation. 

Digital platforms have also vastly improved the user experience, simplifying financial management. Businesses can now easily secure loans, open savings accounts, and access insurance products. They can make direct payments from their bank accounts and effortlessly add funds to previously inaccessible digital wallets. These digital solutions have significantly improved the ease of managing finances.

📚 Deeper Reads

Ready to sign up for a Gen AI certification program? Fintech founders & others weigh in on the trend

Pix goes global: PagBrasil enables Pix payments for tourists and businesses

Octaviano Couttolenc: a purposeful life through social impact investing (ES)

The commitment to inclusion in Mexico (ES)

Entrepreneurial DNA (ES)

Female technological talent that inspires, accompanies and creates the future (ES)

📣 LatAm startup alum who have been impacted by layoffs and recruiters looking for top talent, check out the Startups Alumni and Layoffs Brasil databases.  

If you’re looking to hire from a group of 10,000+ smart, motivated fintech professionals, come pick up a Collective Pass and post a job here.  If you’re looking for your next adventure at one of the best fintech companies, check out the open roles here!

Made in LatAm with 💖 by Elena, Daniela, and Lorena

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