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.

Read more: Revolut Names Béatrice Cossa-Dumurgier Western Europe CEO in Banking License Drive

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 article was written by Jared Kirui at www.financemagnates.com.FinTechRead More

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