For the first time, a fintech buys a bank in Mexico.
Credijusto bought for almost 50 million dollars the Mexican bank Finterra, which is dedicated to financing SMEs and the agricultural sector in the country.
The deal was closed last week and the combined assets of both companies are worth $ 300 million (md), Credijusto executive co-chairman David Poritz was quoted as saying by Reuters.
"Over the past year, Mexico has experienced strong demand for technology-enabled credit solutions, as COVID-19 created a greater need for credit and traditional banks have struggled to adapt to the new digital reality," he said in a statement Credijusto this Tuesday.
The fintech, which was founded in 2015, aims to increase services for Mexican companies that sell to the United States and build a business for American companies that trade with Mexico.
"There are huge financing needs for small companies that export to the United States and vice versa," Poritz told the agency, adding that he expects Credijusto to build a multi-million dollar portfolio between the United States and Latin America in the coming years.
Credijusto and Finterra have together loaned more than 2 billion dollars to small and medium-sized companies. In a couple of years, Credijusto could consider another bank acquisition in the United States, Poritz said, noting that nascent interest from fintechs in acquiring banks is likely to grow. "It is a very logical evolution," he added.
With information from Reuters
