FinTech: Fintech Credijusto Snaps Up Mexican Bank; Becomes Regulated Neobank
Mexican lending platform Credijusto makes history, becoming the first fintech to acquire a regulated bank in the country.
According to Entrepreneur, Credijusto, the Mexican fintech and lending platform acquired Banco Finterra for about $50 million, in the process bagging a banking license. Banco Finterra specializes in financing solutions for the agri-food sector.
Founded by David Poritz and Allan Apoj in 2015, Credijusto has raised about $400 million to date from investors including Goldman Sachs (NYSE: GS), Point72 Ventures, Kaszek, QED Investors, and John Mack.
Traditional banks are unable to deliver enough credit
Credijusto claims to be the first startup focused on serving the needs of small and medium-sized companies to acquire a bank in Latin America. The combined entity will be better placed to fill the vacuum in the delivery of credit solutions in Mexico following the pandemic – the strong demand for which the legacy banks have been unable to satisfy.
Bringing digitization and technology to Mexican banking
“The acquisition of Banco Finterra seeks to create the first truly digital banking platform for Mexican companies in the future,” commented Allan Apoj, Co-CEO of Credijusto. “This transaction marks an important milestone in Mexico and the region, and we are proud to be revolutionizing the future of banking in Latin America.”
The Mexican financial services market and traditional banks have generally underserved the SME sector in Mexico – resulting in an estimated financing gap of about $164 billion according to World Bank. However, the 6 million SMEs in Mexico generate more than 50% of the country’s GDP and employ more than 70% of the active workforce.
Credijusto’s platform utilizes data science and banking technology to promote financial inclusion and offer better banking to the country’s small businesses.
“By combining our proprietary software and data science expertise with Finterra’s banking capabilities, we are building a next-generation financial services business,” said Eduardo Mendoza, Executive Vice President of Credijusto. “This acquisition will also facilitate cross-border opportunities for the thousands of companies involved in trade between the United States and Mexico, an opportunity that we see as an important growth engine for Credijusto.”
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