British fintech company Revolut announced today (Tuesday)
that it has applied for a banking license to operate in Colombia. This move
comes as the firm seeks to strengthen its presence in Latin America, following
its entry into Brazil last year and the
acquisition of a banking license in Mexico in April.

Diego Caicedo, the Head of Revolut in Colombia, stated that
the roll-out in the country is expected to take under two years. In an
interview prior to the announcement, he noted: “Now we’re working with the
Colombian regulator.” He emphasized that the company aims to bring its services
online in Colombia within the next 18 months.

Plans for Employee Hiring Initiative

In the initial phase, Revolut plans to hire between 30 and
50 employees. The company intends to invest around 150 billion pesos
(approximately $35.6 million) in its pursuit of the banking license. Caicedo
joined Revolut in August after previously leading the fintech company KLYM.

Once the banking license is secured, Revolut plans to offer
a range of services. According to Caicedo, the goal is to provide clients with
all the services they need. The company will initially launch products such as
instant money transfers and multi-currency accounts.

Growing Client Base in Colombia

Revolut also aims to introduce financial management services
tailored to consumers, freelancers, and small businesses. The company’s country
head in Brazil reported last month that there was a waiting list of
approximately 15,000 clients in Colombia. Caicedo indicated that this number
has since increased, although he did not provide specific details.

Caicedo views Colombia as a promising market for expansion,
particularly due to the ability to offer remittance services from other
countries, including Spain, Mexico, and the United States, at no charge. This
stands in contrast to competitors. A World Bank study released in June found
that the average cost of sending $200 in remittances to Latin America is around
6% in service fees.

He remarked, “That’s a pain for families, that’s a lot of
money.” Caicedo believes that Colombia presents significant potential for
growth, dismissing concerns about competition from other fintech companies,
such as Nubank, or traditional banks operating in the country.

This article was written by Tareq Sikder at www.financemagnates.com.

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