The investment round was led by Point72 Ventures and includes investments from JAM Fund, Ausum Ventures, Avalancha Ventures, FJ Labs, MANTIS Venture Capital, and XBTO Humla Ventures. Notable angel investors include the Tether Co-Founder and a Quantum Artificial Intelligence Engineer.
Syncfy is a platform that reportedly provides single API access to financial data from over 125 different banks, digital wallets, tax authorities, utility providers, crypto exchanges, and blockchains across over 15 countries in Latin America, as well as globally. The Open Finance platform currently enables financial data aggregation and enrichment across its Connect, Fiscal, and Invoice Stamping API integrations, the press release states.
Amongst Syncfy’s customers, the press release mentions large banks and enterprise software companies such as BBVA and Intuit, as well as fast-growing startups including fintech unicorn Clara. The press release points to key customer use cases including financial management, credit underwriting, and accounting/tax integrations, amongst others.
As stated by the company’s CEO, Syncfy received a positive response from its Latin America-based customers and the announced funding will be used by Syncfy to meet the demand and bring financial automation to more partners across the region. This round of funding will allow Syncfy to invest in regional business development across Latin America and increase its product suite.
While the company was a first mover in Mexico, Syncfy plans to expand its customer base in Argentina, Brazil, and Colombia in particular. The Open Finance platform also plans to launch payment initiation solutions in key markets, enabling interoperable access to financial data as well as improved fund transfers via API.
This year’s Open Banking and Open Finance Report took a closer look at the development of Open Banking and Open Finance in Latin America. As stated by Spiralem’s Managing Partner, Bruno Diniz, in the past three years Open Finance materialized in Latin America, as several regulatory discussions took place. Working groups put a lot of effort to develop standards while various fintechs surfaced to enable access to financial data solutions.
Marcos Cavagnoli from Itau Unibanco believes that Open Finance will give a face-lift to competition and customer relations. Competition between financial institutions will reportedly become fiercer as more and more companies emerge with data sharing solutions.
If you are curious to find out more, we encourage you to download the report and find out what is the status of Open Finance in Latin America.
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