Nequi, a fintech neobank that allowed Colombian citizens to test out all-digital financial services, announced its expansion plans after splitting from Bancolombia, the bank that gave it its origin. These plans include entering the world of cryptocurrency while staying within the limits set by current regulators.
Colombian Nequi to Enter Crypto Market
More and more neobanks are considering including cryptocurrencies in their service offerings. This is the case of Nequi, a fintech platform that would consider entering the crypto sector in Colombia. The platform, which has more than ten million customers, is now in talks to become an independent company and platform, separating from Bancolombia.
The announcement was made by Nequi CEO Cipriano Lopez during a webinar with Credicorp Capital, a holding company that also lends financial services to its clients. Lopez explained that Nequi wants to enter the market directly, with compliance being one of its primary concerns.
Nequi is currently awaiting regulatory approval to become an independent financial company in order to implement the improvements and new plans envisaged.
Strategy, pandemic and growth
The inclusion of cryptocurrency and other new features in the app is part of Nequi’s strategy to continue growing and adding new users. The platform has managed to grow tremendously even during the pandemic, having gained over four million customers during this time thanks to its all-digital business model.
This new round of app changes is expected to be executed in Q3 2022, with the separation from Bancolombia being the catalyst for the new phase of its financial products. The CEO also said the app will introduce new services that will allow Colombians to top up public transport cards, buy tickets – among other services – and drive adoption of the platform.
Lopez is confident the business will be profitable in the coming months, and these plans are aimed at achieving that goal. But the business is not yet profitable even after receiving government subsidies due to its digital nature. The new strategy would be to extend credit to heavy users of the platform who have sufficient cash to pay for it.
Colombia is currently seen as a growing crypto hub by companies like Bitso, a Mexico-based exchange that announced its expansion into the country in February.
What do you think of Nequi’s entry into the cryptocurrency industry? Tell us in the comments section below.
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