Brazilian Bank Topaz Buys Majority Stake in Cobiscorp

The Brazilian FinTech Stefanini Group has acquired a majority stake in Cobiscorp, an American core banking software maker, as part of a larger plan to expand in Latin America.

As FinTech Futures reports, the acquisition will see Stefanini’s core banking subsidiary Topaz integrate a number of Cobiscorp’s solutions, including online fraud prevention and risk reduction solutions, digital channels infrastructure, currency exchange functionality and its more up-to-date Software-as-a-Service (SaaS) based cloud software service tool.

Cobiscorp, which has offices in Washington, D.C., Ecuador, Colombia and Panama, provides solutions for banks, FinTechs and microfinance institutions and has clients in 16 countries.

Topaz CEO Jorge Iglesias says Cobiscorp’s “consolidated financial business digital platform” will further complement Topaz’s full-banking platform, bringing new features to help institutions that hope to evolve to meet market demands.

In addition, Iglesias says Topaz also plans to bring its solutions to new markets in Europe and the U.S. Based in São Paulo, Stefanini Group offers its services in more than 25 countries across Europe and Latin America.

Read more: LATAM Consumers Embrace Neobanks as Legacy Bank Infrastructure Stifles Digital Transformation

This move comes at a time when a growing number of consumers in Latin America are embracing digital-first payment and banking solutions in the wake of the COVID-19 pandemic.

As PYMNTS reported last month, one recent report found 62% of consumers using less cash in 2020 compared to 2019. Contactless credit and debit card use also rose during that time frame, showing a growing comfort with and preference for digital options.

But as alternative payment solutions become more popular, financial institutions (FIs) in Latin American are facing tougher competition from up-and-coming digital-first players in the race to engage and retain customers.

Some legacy FIs are working quickly to launch new digital offering as banking expectations shift. For example, the Central Bank of the Argentine Republic (BCRA) Transferencia 3.0 program officially rolled out in November, allowing customers to make QR code-based payments across various channels and devices, including through virtual wallets or digital banking apps tailored for users’ mobile devices.