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Contxto – Fintechs are surging across Latin America, which in turn leads to opportunities for even more fintechs. Consequently, startups working with open banking APIs have drawn investments in recent weeks. Although now a white-label startup raised funding with one of the biggest names in finance.
J.P. Morgan invested an undisclosed amount in FitBank from Brazil.
The fintech will use the funds to expand its product portfolio as well as scale internationally. Its primary focus (for now) shall be Latin America.
As part of the dealings, J.P. Morgan’s wholesale customers may come to FitBank for payment solutions. This is because the startup offers white-label financial products like digital accounts, transfer systems, and escrow services.
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J.P. Morgan and FitBank in Latam
According to Valor Econômico, it is the first investment J.P. Morgan has ever made towards the payments industry of Latin America. Evidently, for the multinational company, there’s something to be had in the region.
“The strategic investment in FitBank is an important addition to sustaining and growing our leadership in wholesale payments within Latin America,” said Renata Vilanova Lobo, the Head of Brazil Wholesale Payments for J.P. Morgan.
Moreover, additional commentary on Lobo’s end suggests that the fintech will have plenty of work coming it’s way.
“Our clients, both local corporates and international MNCs, are looking to J.P. Morgan to help simplify digital payments in the region and provide them access to the various new payment types unique to Latin America,” said the Executive.
Consequently, J.P. Morgan sees the startup as a gateway for financial payments and wants to help itself and its customers by sending them to FitBank.
What isn’t entirely clear is whether J.P. Morgan’s customers will get a discount or other perk by agreeing to work with FitBank.
Either way, it’s likely we’ll hear soon of the startup’s regional exploits. Perhaps in Mexico, especially given the momentum the fintech ecosystem has been experiencing within the last year.
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