Just a few months after consolidating its enterprise in Chile, UPago, the Chilean recurring funds fintech, not too long ago expanded its operations to 2 key nations on this monetary phase: Mexico and Colombia.
In response to the corporate, this enlargement goals to consolidate the fintech as one of many main gamers in LatAm, serving to small companies scale back cost prices by enhancing their monetary administration.
The Chilean fintech emerged in 2019 to simplify the administration of those corporations’ cost and assortment platforms. It permits companies to manage their earnings and accounts payable, enhance their money assortment, safe their revenues, and scale back their prices.
In its residence nation, UPago has purchasers in automotive loans, monetary retail, training establishments, and actual property, amongst others.
A multi-process monetary platform
UPago ensures the automation and personalization of cost wallets amongst its main companies. It controls and supplies full cost and financial institution reconciliation traceability, preventive and delinquent assortment administration, and last efficient assortment.
In a current interview, UPago’s common supervisor, Felipe Pastenes, acknowledged that “we guarantee assortment from the second a group doc is issued, even when it turns into delinquent, eliminating guide processes, decreasing prices, enhancing restoration occasions, and enhancing funds.”
Fintechs’ enlargement to underserved LatAm nations
Within the final two years, a number of fintechs have sought to broaden their operations to the Mexican and Colombian markets, representing vital alternatives for the sector in LatAm.
That is primarily as a result of each markets share economies just like these of nations comparable to Brazil and Chile and include markets virtually 5 occasions bigger than these of different nations.
In Mexico, for instance, Enterprise Capital funding is extra up-to-date with what is occurring within the U.S. market, attracting many buyers keen to guess on disruptive corporations in LatAm.
However, along with that, one other crucial issue for these nations to be so engaging for fintechs is the extent of bankarization and the next room for development of monetary companies startups like UPago.
In a rustic of just about 130 million folks, comparable to Mexico, for instance, solely 40% of persons are affiliated with a monetary establishment — a development that’s the reverse of what occurs in Chile, which has greater than 90% of its inhabitants banked.
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Jorge C. Carrasco is a Contributing Reporter at Fintech Nexus. He experiences on fintech, economic system, banking, startups, and know-how, overlaying essentially the most impactful tales from a Latin American perspective.
He has contributed to a number of worldwide publications, comparable to Overseas Coverage, The Spectator Australia, Estadão, Época, Washington Examiner, and Quillette. Initially from Havana, Cuba, he’s now based mostly in Brazil.