After having left Bancolombia (the bank from which it was born), Nequi, a fintech Neobank that allowed Colombians to try all-digital financial products, announced plans for growth. The plans allow for an entry to the cryptocurrency market while adhering to the current regulations.
Colombian Nequi to Enter Crypto Market
More neobanks will consider including cryptocurrency in their services. Nequi is one fintech platform, and it is said that they are looking at entering the cryptocurrency sector in Colombia. The platform has over ten million clients and is in talks with Bancolombia to be an independent platform and company.
The announcement was made by Nequi’s CEO, Cipriano Lopez, in a webinar with Credicorp Capital, a holding company that also lends financial services to its customers. Lopez said that Nequi would like to have a direct entrance into the market. Compliance is one of Nequi’s first concerns.
Nequi currently awaits regulatory approval to establish itself as an independent financial institution in order for the company to make the necessary improvements and implement new plans.
Pandemics, Strategy and Growth
The inclusion of cryptocurrency and other new features in the app is part of Nequi’s strategy to keep growing and adding new users. The app’s all-digital business model allowed for tremendous growth even during pandemic.
These new updates to the app will be implemented in Q3 2022. The separation from Bancolombia is expected to act as a catalyst for the launch of a new phase of its financial services. The CEO also declared that the app would be introducing new services that will allow Colombians to top up public transportation cards, make ticket purchases — among other services — and to power the adoption of the platform.
Lopez feels certain the company will become financially viable in the next few months. This is why Lopez has created these plans to help him achieve that goal. Despite receiving subsidies from the government, the company still isn’t profitable. This could be due to the digital nature of the business. New strategy includes credit to users that are heavy on the platform and have sufficient liquidity to purchase them.
Companies such as Bitso (a Mexican-based crypto exchange) see Colombia currently as a rising crypto hub. It announced their expansion to Colombia in February.
How do you feel about Nequi entering the cryptocurrency market? Leave a comment below.
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