UK-based fintech Revolut has agreed to acquire Banco
Cetelem in Argentina from BNP Paribas, marking its first direct entry into the
South American banking market, Bloomberg reported, citing people familiar with
the matter.The deal reportedly includes Cetelem’s local banking
license and roughly $6.4 million in assets.
Establishing Presence in Argentina
The acquisition allows Revolut to establish a formal
presence in Argentina’s financial system as the company pushes ahead with
international expansion plans. The London-headquartered fintech has already
initiated the regulatory approval process with Argentina’s central bank.
Banco Cetelem is one of the smallest lenders in
Argentina, ranking near the bottom of the central bank’s list of financial
institutions by assets. However, the license is seen as a strategic asset for
Revolut, which is increasingly relying on acquisitions to enter new markets.
The company participated in a competitive bidding
process for the bank, which also attracted interest from Southern Cross Group
and brokerage firm Criteria.
Revolut has started staffing for its Argentine
operations and recently appointed Augustin Danza as CEO for the local unit. The
company, which serves 60 million users globally and is valued at around $45
billion, already holds a restricted banking license in the UK and a full
license in Mexico. It is pursuing at least 10 more banking permits worldwide.
The entry into Argentina comes as President Javier
Milei’s administration rolls out economic reforms that are reshaping the
financial sector. The country is experiencing a revival in credit markets, with
banks issuing mortgages for the first time in years.
Private Sector Lending
According to Bloomberg, data from industry group Adeba
show that private sector lending rose 53% in real terms in 2023, the strongest
growth in more than three decades.
Revolut enters a crowded and competitive landscape,
where regional fintech firms like MercadoLibre and Uala already dominate
consumer digital payments and retail banking services. Still, the company appears intent on leveraging its
new local status to compete in the evolving market.
UK-based fintech Revolut has agreed to acquire Banco
Cetelem in Argentina from BNP Paribas, marking its first direct entry into the
South American banking market, Bloomberg reported, citing people familiar with
the matter.The deal reportedly includes Cetelem’s local banking
license and roughly $6.4 million in assets.
Establishing Presence in Argentina
The acquisition allows Revolut to establish a formal
presence in Argentina’s financial system as the company pushes ahead with
international expansion plans. The London-headquartered fintech has already
initiated the regulatory approval process with Argentina’s central bank.
Banco Cetelem is one of the smallest lenders in
Argentina, ranking near the bottom of the central bank’s list of financial
institutions by assets. However, the license is seen as a strategic asset for
Revolut, which is increasingly relying on acquisitions to enter new markets.
The company participated in a competitive bidding
process for the bank, which also attracted interest from Southern Cross Group
and brokerage firm Criteria.
Revolut has started staffing for its Argentine
operations and recently appointed Augustin Danza as CEO for the local unit. The
company, which serves 60 million users globally and is valued at around $45
billion, already holds a restricted banking license in the UK and a full
license in Mexico. It is pursuing at least 10 more banking permits worldwide.
The entry into Argentina comes as President Javier
Milei’s administration rolls out economic reforms that are reshaping the
financial sector. The country is experiencing a revival in credit markets, with
banks issuing mortgages for the first time in years.
Private Sector Lending
According to Bloomberg, data from industry group Adeba
show that private sector lending rose 53% in real terms in 2023, the strongest
growth in more than three decades.
Revolut enters a crowded and competitive landscape,
where regional fintech firms like MercadoLibre and Uala already dominate
consumer digital payments and retail banking services. Still, the company appears intent on leveraging its
new local status to compete in the evolving market.
This post is originally published on FINANCEMAGNATES.
