Revolut Eyes Colombia: A Fintech Expansion

Revolut, a major British fintech, is pursuing a banking license in Colombia to bolster its presence in Latin America. Having launched in Brazil and secured a license in Mexico, Revolut aims to introduce its services in Colombia within 18 months, despite existing competition from other banks and fintechs.

British fintech company Revolut, which has recently been valued at an impressive $45 billion, is seeking to expand its reach into Colombia by applying for a banking license, as announced on Tuesday. This move is part of Revolut's strategic push into the Latin American market, following previous expansions in Brazil and Mexico.

The head of Revolut in Colombia, Diego Caicedo, anticipates the rollout to be completed within the next 18 months, intending to establish a significant presence by hiring between 30 to 50 employees and investing approximately 150 billion pesos in securing the license. Revolut's initial offerings will include services like instant money transfers and multi-currency accounts, with plans to cater to consumers, freelancers, and small businesses.

Driven by a rising interest in its services, Revolut sees Colombia as a key market, capable of challenging local rivals with its remittance service. This service allows for free transfers from countries such as Spain, Mexico, and the United States. A World Bank study from June highlighted the high costs of remittances in Latin America, underlining the potential demand for Revolut's cost-effective solutions.

(With inputs from agencies.)