Mexican fintech startup Credijusto has acquired Banco Finterra, one of the country’s regulated banks, marking a milestone in the country’s burgeoning fintech industry.
Banco Finterra lends loans to small and medium enterprises in addition to farmers. Analysts say Finterra gives a competitive edge to the fintech firm.
The startup, backed by the likes of Goldman Sachs and Credit Suisse, has not disclosed how much it paid for the acquisition, but Reuters put the figure at US$50 million.
Credijusto says it would focus on lending money to American firms operating in Mexico and elsewhere in Latin America.
“Our acquisition will also enable a digital cross-border experience to the thousands of businesses engaged in commerce between the U.S. and Mexico, an opportunity that we see as a major driver of growth for Credijusto,” stated the fintech’s Co-CEO David Poritz.
Found it in 2015, Credijusto initially capitalized on Mexico’s lack of financial inclusion. Its business grew at a rapid space as regulated banks struggled to adapt to the new digital reality following the outbreak of the Covid-19 pandemic.
Credijusto does not have any physical branches as all its operations are conducted online. Therefore, the acquisition of a traditional bank positions Credijusto well to continue its growth in the country.