Security and Backbase: 'Come Together' for a Digital Banking Revolution

Banco Security and Backbase join forces, Somapay and Fortes Tecnologia launch FortesPay, and Nubank reaches 90M customers.

Dec 04, 2023

Welcome to our weekly newsletter covering the latest news and trends in the Latin American Fintech startup scene.

Banco Security and Backbase join forces to promote digital banking

Grupo Security has a four-year digital investment strategy amounting to USD$50 million, implementing various actions to strengthen its operations and improve operational efficiency in business digitalization.

In this line of action, Banco Security, a subsidiary of the financial group, entered into an agreement with Backbase, a prominent fintech globally, specializing in solutions for digital banking.

This partnership aims to boost the digital experience, strengthen the marketing of additional products, and increase business efficiency.

Through integrating Backbase’s Retail Banking solution, Banco Security is renewing its digital platforms to provide personalized experiences to its clients.

“Together, we hope to set new standards in the banking industry, putting the customer at the center of everything we do,” explained Nicolás Perdomo, Regional Sales Director of Backbase for Latin America and the Caribbean.

Vía Contxto

Quick News

Somapay and Fortes Tecnologia launch FortesPay in Brazil

Somapay, a fintech company based in Ceará specializing in payroll automation, announced a partnership with Fortes Tecnologia, a software accounting company located in Fortaleza (CE).

The goal is to integrate payroll management by Human Resources and provide banking solutions to employees.
Fortes‘ solutions have handled processing and closing employee payments, transmitted the information to the government through eSocial, and offered business management tools.
In addition to facilitating the free opening of digital accounts with SomaPay, the integration offers a variety of additional services, such as payroll loans, insurance, transfers, and access to a marketplace with popular apps like Uber, iFood, Spotify, and Netflix, as well as discounts at pharmacies. (Contxto)

Nubank reports revenues of USD $2.1 billion in the third quarter of 2023 and reached 90 million customers

In the third quarter of 2023, Nubank revealed outstanding financial results, reporting record revenues of USD $2.1 billion. Net income reached USD $303 million, with an adjusted net income of USD $356 million.

According to Nubank’s founder and CEO, David Vélez, the company reached 90 million customers in October.
The cost per customer remained below the dollar level, and the efficiency ratio improved by 40 basis points in the quarter, reaching 35%.
in Mexico, the customer base grew to 4.3 million, driven by the success of the Cuenta Nu savings product and the member-get-member program. In Colombia, the customer base expanded to around 800,000, anticipating accelerated growth with the launch of Cuenta Nu. (Contxto)

ACI Worldwide and Mexipay join forces to transform payments in Mexico

ACI Worldwide, a global leader in mission-critical real-time payment software, has partnered with the fintech company Mexipay to drive innovation in payments in that country.

Mexipay will use ACI’s enterprise payment platform to introduce ISO 20022 real-time payments and other innovative payment services in Mexico.
Mexico has stood out as one of the pioneers in adopting real-time payments, thanks to its Electronic Interbank Payment System, which was implemented in 2004.
According to ACI’s Prime Time for Real-Time 2023 report, Mexico recorded an average of 3.9 real-time monthly transactions per person in 2022, ranking third in the Latin American region and twenty-seventh globally (Contxto)

Colaboramed secures USD $1 million investment from U-Payments

Chilean Fintech Colaboramed has reached a significant milestone in its journey towards success by securing a USD$1 million investment, representing 12% ownership of the company and valuing it at a total of USD$8.8 million.

This financial achievement was made possible through AMOL's innovative health-focused prepaid card, designed to simplify health copayment payments.
U-Payments has decided to support this promising project, recognizing its potential to become the next ‘unicorn‘ in the market.
AMOL’s entry into the market is significant news for Chileans seeking financial solutions for their health needs. (Contxto)

DiiMO closes a USD $1.2 million investment to drive financial inclusion in Central America

DiiMO celebrates the success of its recent Pre-Series A financing round, in which it raised a total of USD $1.2 million, composed of equity and a line of credit.

This investment aims to expand DiiMO’s regional influence and strengthen its commitment to financial inclusion.
Endless Ventures and HAguila Investments joined as new shareholders, marking an important milestone in the fintech’s journey.
This successful funding round marks a significant advancement in the Central American startup landscape, where raising funds of such magnitude is an achievement few companies have attained. (Contxto)

Contbank opens investment round to raise BRL $6.25 million

Contbank, a Brazilian fintech focused on credit solutions for SMEs, has initiated an investment round that could reach BRL$6.25 million. The equity crowdfunding campaign is available on Captable, with investments starting from BRL $1,000.

According to Captable, GJL Real Estate, a German investment company with global operations, is anchoring the offering to strengthen its investment portfolio in Latin America.
The entry of the European group was facilitated by Ilumina Private Advisors, the company’s representative in Brazil.
So far, Captable has surpassed BRL $100 million in crowdfunding. (Contxto)

Clara launches payment account in Brazil

Clara has introduced a payment account in Brazil, thus expanding its range of products that includes corporate cards and expense management solutions.

This new offering allows Brazilian customers to access various payment methods, such as bank receipts and express bank transfers.
Clara aims to facilitate transactions worth BRL$6.000 billion by 2024 with the launch of this account.
This expansion strategy aims to consolidate Clara’s presence in Brazil, the region's largest economy, to gain a significant share in the B2B payment market. (Contxto)

Webull acquires Flink to enter the Mexican investment market

This acquisition includes Flink and involves the purchase of Vifaru Casa de Bolsa, a Mexican brokerage that Flink agreed to acquire in May 2022.

The financial terms of the deal were not disclosed.
The merger promises to retain Flink’s existing services while integrating Webull’s advanced technology.
Upcoming plans involve rolling out local investment and cash management products in Mexico. (Contxto)

Moonflow closes its first round of investment for USD$700,000

Moonflow has successfully concluded its first financing round of USD$700,000, surpassing the initial goal.

Recognized Latin American funds such as Magma Partners, Salkantay Ventures, Amador Holdings, and Morro Ventures participated in this round.
The primary purpose of this round was to provide the necessary financial resources to boost the acquisition of new clients and strengthen the capabilities of its collections management platform.
the company has established itself in 10 regional countries, including Brazil. (Contxto)

Konsi closes an R $3 million investment in a Seed round led by Valutia

Konsi, a startup dedicated to enabling comparative analysis and reducing interest rates on payroll loans, has announced a R$ 3 million Seed round led by investment firm Valutia.

The investment marks a significant step towards the company’s growth and expansion to transform the payroll loan landscape in Brazil.
One of the company’s key objectives is to extend its services to all federal, state, and municipal employees in Brazilian capitals by 2025.
Konsi already provides services to state employees in various Brazilian states, including Amazonas, Bahia, Mato Grosso, and São Paulo. (Contxto)

Fintech Education

B University of Hong Kong: Blockchain and FinTech: Basics, Applications, and Limitations. Understand the design rationale of blockchain technology and its emerging platforms and applications and uncover the limitations and opportunities enabled by blockchain applications, particularly as they relate to finance.
Blockchain: Fundamentals and applications for business optimization. You will understand the general functioning of blockchain technology and its differences: private, public, and hybrid.
Innovation in Finance: Fintech and Blockchain. It encompasses concepts such as artificial intelligence, open banking, APIs, and neobanks, shaping new ecosystems. The online content allows you to adapt your training process to your work and personal life.

Food for Thought

The fintech revolution in Latin America
Horacio Arredondo, dean of EGADE, and Rodrigo Andrade, CEO of PeiGo, talk about the fintech revolution in Ecuador and the rest of the region. A Podcast by Tec Sounds.

Jobs

Product Owner Lead – Argentina @Prex (Remote)

Head of Fraude @Global66 (Location)

Head of product strategy – Perú @Galgo (Remote)