Nequi to Get into Crypto Business in Colombia

Fintech neobank called Nequi, which currently allows citizens in Colombia to test digital financial services, has recently announced its decision to expand after it parted ways from the bank that had given it origin i.e. Bancolombia. These plans include making its way into the crypto space, while ensuring full compliance with the limits that have been imposed by the regulatory authorities. This does not come as a surprise, as an increasing number of neobanks have been thinking of adding cryptocurrencies to their service offerings. This is also applicable in the case of Nequi now, as it wants to make its entrance in Colombia’s crypto industry.

There are more than ten million people who are already using Nequi, which is now in discussions of becoming an independent platform and company. CiprianoLopez, the chief executive of Nequi, made the announcement via a webinar. This was conducted with a holding company called Credicorp Capital, which offers financial services to its clients. According to Lopez, Nequi is interested in making a direct entry in the crypto space and one of their biggest concerns is none other than compliance. The platform is currently waiting for regulatory approval, so it can operate as an independent company and apply for the new plans and improvements it has envisioned.

Nequi plans on attracting more users and expanding the app and include crypto as well as other new features is part of its strategy for accomplishing these goals. Even during the times of the global coronavirus pandemic, the platform had experienced immense growth. It had attracted more than four million customers primarily because of its all-digital business model. They expect to execute the new changes to the app by the end of the third quarter this year and the catalyst for this new phase would be Nequi’s separation from Bancolombia.

The CEO further disclosed that new services would be introduced by the app that will help Colombians in making ticket purchases, topping up their public transportation cards and some other services, which would assist in powering up the platform’s adoption. Lopez is sure that in the next months, the company would be able to achieve profitability and these new plans are meant to achieve said goal. However, it is important to note that despite receiving subsidies from the government because of its digital nature, the company has still not been able to become profitable.

The new strategy of the company would involve offering heavy users of the platform credits, as they would have the liquidity sufficient enough to pay for them. Currently, a number of crypto companies have come to regard Columbia as a growing crypto hub. This includes Bitso, a crypto exchange based in Mexico, which had made an announcement in February about its decision to expand in Columbia. Likewise, there are several other companies that have also taken an interest and with Nequi’s expansion, it is expected that more will take notice. This would certainly help the crypto space in Colombia grow and flourish quickly, as it seems to be doing in many other countries.

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