Revolut Reportedly Acquiring Argentinian Lender Banco Cetelem

Digital bank Revolut is buying Banco Cetelem, a small Argentinian lender owned by BNP Paribas.

“Argentina’s digital banking industry has seen significant growth in recent years, with the majority of the population actively using digital financial services,” the company said in a news release provided to PYMNTS on Thursday (June 26).

“While banking penetration is high, access to financial products such as credit are limited. Revolut is uniquely positioned to fill this gap with its global infrastructure, deep product portfolio, and commitment to financial inclusion.”

The company said it plans to offer financial services “tailored to the local market,” including multicurrency accounts, fee-free P2P transfers, FX, budgeting tools, credit, savings and investment products.

A report on the deal from Bloomberg News, citing data from Argentina’s central bank, said Cetelem is one of the two smallest banks in the country, holding roughly $6.4 million in assets. Sources said Revolut has already commenced the regulatory process with Argentina’s monetary authority, which oversees and must OK any purchase of a banking institution.

Revolut said in March it was looking to expand its banking operations beyond the U.K., with Revolut exploring New Zealand, Singapore and the United Arab Emirates.

Meanwhile, PYMNTS wrote last year that Latin America is an obvious choice for FinTechs looking to transform financial services.

The region, that report said, is populated by digitally savvy, younger consumers, “underbanked and even unbanked populations ripe for financial inclusion,” and a “regulatory environment conducive to digital innovation.”

As of last year, there were 3,069 FinTechs operating across 26 countries in the region, a steep increase from 703 FinTechs in 18 countries in 2017, per PYMNTS Intelligence research.

This growth is largely down to FinTechs addressing previously underserved groups of customers, giving them access to financial products and services that were once unavailable.

That research comes from a recent PYMNTS Intelligence report titled, “Digital Payments Reshape Commerce Across Latin America,” a collaboration with Galileo Financial Technologies.

The report looks into how digital payment methods are skyrocketing in popularity throughout the region, now on the cusp of supplanting traditional options like cash. This shift is fundamentally transforming commerce and financial access, with more and more consumers and businesses opting to use mobile wallets, real-time transfers and other digital tools.

“Mobile devices are fast becoming the preferred means for payments, revolutionizing purchasing behaviors and actively promoting financial inclusion,” PYMNTS wrote. “Instant payments are rapidly becoming a standard expectation, driven by both government initiatives, such as Brazil’s Pix, and private FinTech innovations like MODO in Argentina.”