Revolut Applies For Banking License In Colombia
Revolut, British FinTech company valued at $45 billion USD, has officially announced plans to apply for a banking license in Colombia. This move positions the company to compete in a dynamic financial landscape that includes over 60 established competitors, from traditional banks like Bancolombia to digital platforms such as Nu Bank.
In September 2024, Glauber Mota, CEO of Revolut Brazil, revealed in an interview with the economic newspaper La República that the company, which operates in 38 countries, views Colombia as a strategic hub for its Latin American expansion. Revolut has already started to form a local team to make its market entry strategy and secure the necessary regulatory approvals.
In the initial stage of operations, Revolut plans to hire between 30 and 50 people and spend around $150 billion USD to obtain the license and operate in Colombia.
“The Colombian market is a significant one. If we add Brazil, Mexico, and Colombia together, they account for more than half of the Latin American market. So, establishing a presence in this country is a great opportunity, especially as it has strong regulations that are evolving rapidly,” said Mota. In fact, this announcement follows Revolut’s successful entry into Brazil last year and the acquisition of a banking license in Mexico in April.
Revolut plans to hire between 30 and 50 people and spend around $150 billion USD to obtain the license and operate in Colombia.
In October, Revolut officially announced in a press release that it is actively pursuing a full banking license from the Superintendencia Financiera de Colombia (Financial Superintendence of Colombia). Achieving this would place Revolut among an elite group of fintechs with such authorization, including Lulo Bank, which is part of the Gilinski Group.
To start operations in Colombia, Revolut has appointed Diego Caicedo as its country manager. Caicedo has significant experience in the tech sector and is mainly known for co-founding the business financing fintech KLYM, which has attracted millions in investment. He is now dealing with the competitive and regulatory landscape of Colombia.
Revolut’s entry strategy in Colombia is centered on three core pillars: Transparency; services for independent professionals; and remittances, providing efficient and cost-effective solutions for international money transfers.
As Caicedo explained to Forbes, “the competitive advantage lies in Colombia being both sender and receiver for remittances, with 9 million Colombians receiving them every month. The Central Bank estimates that these remittances have an average cost of 6%, but through Revolut that cost could drop to zero.”
Once Revolut gets a full banking license in Colombia, the company’s initial offerings in Colombia will include:
- Instant international money transfers: Low-cost, fast transfers to and from over 30 countries at competitive exchange rates, particularly benefiting the millions of Colombians receiving remittances each year.
- Multi-currency accounts: The ability to hold, exchange, and spend in over 30 currencies from a single account, making travel and cross-border commerce easier than ever.
- Smart budgeting tools: Insights and analytics to help users manage their spending, saving, and investments efficiently.
- Credit products suited to the population’s everyday spending needs.
- Early access to new products: Colombian users will be among the first in Latin America to experience Revolut’s upcoming services.
Headline photo: The Revolut app on an iPhone (Photo: Focal Foto / Flickr)