Business

The Latino entrepreneur who caught the attention of Jack Dorsey, co-founder of Twitter


The Fintech trade comes hand in hand with expertise, daughter of the fourth industrial revolution because of digitization, and it does so as a result of everybody has a cellphone of their hand and is linked.



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Technology means democratizing companies for individuals who usually did not have them, and the monetary trade isn’t any exception. In the previous, in nearly all rising markets, the banking mannequin has solely labored for a minority inhabitants that tailored to the mannequin it proposed.

However, this mannequin based mostly on outdated expertise and based mostly on a really excessive value construction attributable to the truth that bodily areas have to be accessible, resembling workplaces, branches, amongst others, make this mannequin present companies based mostly on monetizing by charging. to customers resembling: dealing with charges, charging for sending and receiving cash, amongst different prices that make it tough for many individuals to entry these monetary companies simply.

As a results of this drawback, the fintech motion arises and with this motion in Colombia and plenty of different nations, technology-based firms present monetary companies with higher usability and with a special enterprise mannequin the place the person is now not charged and the place the fundamental protagonist is expertise and the neobanks which are more and more gaining floor within the area.

Now what’s sought is to supply good usability and free companies, attaining exponential development, one thing that’s occurring all through the world and Latin America isn’t any exception, since numerous modern firms are rising which are democratizing companies. monetary.

SQUARE MAKES ITS FIRST INVESTMENT IN LATIN AMERICA

Recently, Movii , a Colombian digital pockets and fintech specialised in fully on-line banking, monetary and cellular fee companies, achieved the necessary milestone of turning into the first Latin fintech during which Square, an organization based by Jack Dorsey, made a major funding of 17 million {dollars} , thus being the primary funding made by Square in Latin America.

“The fact that Square invests in Colombia and it is their first investment in Latin America fills us with great pride and makes us feel very connected with what they have achieved in the United States and with what they want to achieve in the world, which is to use technology to allow people and businesses to pay or be paid digitally and we do the same with Movii in Colombia”, stated Hernando Rubio, CEO and Co-founder of Movii in an interview with Entrepreneur .

According to Rubio, Movii was born as a result of in Colombia, as in different rising nations, there’s a very low penetration of acceptance of digital funds. According to Dane, in Colombia solely 56.5% of households in Colombia have web entry and the proportion of people that have entry to pay on-line could be very low, round 14% of individuals have a bank card. .

For these causes, Movii was born to make use of expertise so that folks pays and be paid digitally. Since its basis in 2019, the fintech has managed to consolidate 2.2 million people who find themselves already customers and greater than 60 thousand companies that obtain and pay with Movii digitally and are projected to finish 2022 with greater than 4 million customers.

“It’s about understanding what the user needs, how they want to be treated and through technology to be able to offer that service. We dedicate many of our resources to understanding the segment that we lend and understanding the needs and pain that users have and from that to be able to create experiences so that they can move their money and can function better in the digital economy,” says Rubio.

SERVICES

In three years of service, the fintech has managed to deliver out 15 merchandise that make them helpful for folks, resembling opening an account in a few minutes in a easy and 100% digital manner, till they’ll purchase with the cardboard anyplace on the earth. , you’ll be able to ship and obtain remittances from the appliance to greater than 100 nations with easier usability and decrease prices, you’ll be able to even purchase or promote crypto belongings simply from the appliance, amongst many different companies.

According to Hernando, his firm is totally different as a result of they create an modern manner of offering monetary companies targeted and centered on what the client desires they usually do it with nice agility, creating quick and helpful merchandise for customers and based mostly on a special enterprise mannequin. not like the standard one which costs customers for the whole lot, however as a substitute costs third events in order that customers have good usability and are free.

INVESTMENTS

Movii has already carried out a number of funding rounds resembling Series A and Series B the place crucial funds entered that search the identical factor that the corporate seeks, which is to hunt monetary inclusion by expertise and to have the ability to democratize funds.

In spherical C they did a preliminary survey the place Square really entered, which is the corporate that within the United States managed to permit small companies to obtain digital funds since they solely obtain funds in money, as is the case in Colombia and in lots of nations of the Latin area.

REASONS WHY SQUARE INVESTED IN MOVII

According to Rubio, the primary purpose that Square has invested in its fintech is as a result of they see nice ache in your entire world, particularly in rising markets, of how the overwhelming majority of individuals don’t use present fee strategies. and the way they have been excluded.

That is why at Square they need to do what they did within the United States, additionally in Latin America they usually search for firms that do the identical. Square has carried out the identical and has invested in different areas resembling Europe and Asia. Now they’ve determined to do it in Latin America and the primary purpose for doing it with Movii is as a result of they’re aligned with their aim, which is to assist promote new applied sciences that enable obstacles between nations to be eradicated in order that anybody can transfer their cash on the earth in a easy, straightforward and quick manner.

CHALLENGES AND DIFFICULTIES

There isn’t any higher time to undertake than this “Anyone who understands a pain that affects millions of people and anyone who understands how technology can solve it, will have a very large exponential growth”.

Being a regulated monetary trade; According to Hernando, the largest problem is the right way to innovate in a regulated trade, as a result of they wish to go sooner, however in the long run it’s a must to go on the tempo of the regulators.

The different side is entry to infrastructure, usually the banks are the homeowners of the infrastructure networks of all nations and Colombia isn’t any exception and there’s a battle of curiosity as a result of if the banks are the homeowners of the infrastructure, they don’t They are going to need to allow that infrastructure in order that new opponents can arrive.

The obstacles are regulatory, compliance and entry obstacles to infrastructure after which others resembling entry to capital, however it’s one thing that’s much less and fewer as a result of there may be an increasing number of cash accessible and extra funding funds and enterprise capitalists, prepared to allocate cash for technology-based firms to resolve issues that traditionally haven’t been solved

EXPANSION

According to Hernando, the corporate plans to proceed rising so that every one companies pays and be paid digitally, along with persevering with to introduce new merchandise to make them extra helpful. The cash from the final spherical of funding will likely be used to proceed rising and creating new merchandise, along with reaching new nations which are nonetheless learning their markets with the intention to later be capable to enterprise into them and attain these locations with many monetary and digital service options. .

(About the writer: Julian Tabares is editor of the Soy Emprendedor website)



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