British fintech company Revolut has applied for a banking license in Colombia as it seeks strengthen its presence in Latin America.
The London-based company, which recently obtained a U.K. banking license and is valued at $45 billion, expects the approval process to take under two years. Revolut entered the region last year by launching operations in Brazil and securing a banking license in Mexico in April.
Revolut’s country head, Diego Caicedo, said the company plans to hire between 30 to 50 employees and invest around 150 billion pesos ($35.64 million) in its pursuit of the banking license. Caicedo joined Revolut in August after leading the fintech company KLYM.
In its initial phase, Revolut plans to offer services like instant money transfers and multi-currency accounts, followed by financial management tools aimed at consumers, freelancers, and small businesses.
Caicedo added that Revolut is now working with Colombia’s regulatory authorities to provide a comprehensive range of financial services once the license is secured.
Revolut already has a massive waiting list of potential customers in Colombia, which Caicedo noted has grown beyond the 15,000 clients mentioned last month by the firm’s Brazil country head.
Colombia is seen as a strategic market for Revolut due to its high demand for remittance services. The company will differentiate itself by offering free remittance transfers from countries where it already operates, such as Spain, Mexico, and the United States. This approach contrasts with the region’s average 6% fee for sending $200 in remittances, as highlighted by a World Bank study.
Despite competition from fintech rivals like Nubank and traditional banks, Caicedo believes Colombia holds growth potential for Revolut’s expansion. He sees the country as a market with “tons of potential, tons of upside,” and remains confident in Revolut’s ability to stand out by offering lower-cost services to its clients.
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Publish date : 2024-10-09 04:02:00
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