The undisclosed investment into Belvo, an Open Finance API platform in Latin America, will fund the co-development of an ‘Open Finance ecosystem’ in Mexico between the bank and fintech. Belvo declared that it was ‘ecstatic’ to collaborate with Citi and argued that this move makes evident a trend of increasing Open Finance collaboration between fintechs and traditional financial players in Latin America.
According to Belvo’s co-CEO, ‘as regulation quickly moves forward in countries like Brazil, Mexico, and Colombia, we believe that working together with financial institutions is key to bringing the benefits of these new models to more and more businesses and end-users, and that these collaborations will have a great impact on increasing access to better financial services across the region’.
Belvo, which closed a USD 43 million Series A round in which Visa also participated, helps institutions and banks with secure connections for end users’ financial data. The fintech currently provides connectivity through its API platform to over 60 financial institutions and works with over 150 clients, including financial institutions and fintechs in Mexico, Brazil, and Colombia such as Tribanco, Rappi, Mobills, and Mercado Libre.
Belvo was founded in 2019 and is backed by investors such as Kaszek, Founders Fund, Future Positive, and Kibo Ventures, and has received a total of USD 56 million.
According to Citibanamex, the bank aims ‘to offer the best banking experience in Mexico. Citi Ventures’ investment in Belvo will get Citibanamex closer to Belvo, accelerating our path to develop Open Banking capabilities while creating omnichannel, and deeply personalised, digital experiences and products for the benefit of our customers’.
The Citi investment follows Belvo early-summer announcement. In June 2022, Belvo managed to secure an authorisation from the National Banking and Securities Commission (CNBV) for the organisation and operation of an Institución de Fondos de Pago Electrónico (IFPE) in Mexico.
In May 2022, Belvo launched its Open Finance solution in Brazil. The new offering is meant for financial institutions and other regulated players in Brazil.
At the end of 2021, Visa announced that it made an investment in Belvo. The two companies also partnered to develop Open Finance solutions in LATAM.
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