The National Banking and Securities Commission (CNBV) authorized technology company Ualá to acquire the bank ABC Capital. The process is expected to be formalized in the next few days, initiating a period of integration between the two companies, which will allow Ualá to strengthen its value proposition with the innovation, security, experience and trust in the local market that ABC Capital brings to the table.
The CNBV approved the acquisition following a favorable opinion from the Bank of Mexico (Banxico). The acquisition process began in April 2022. Thus, the financial technology company, with five years of operations in Latin America, formalizes the acquisition agreement of a bank that has over 12 years of experience in the Mexican financial sector. This will allow Ualá to continue promoting financial inclusion throughout the country with the experience of local partners.
In recent months, the two institutions have been working hand in hand under a co-branding agreement (Ualá ABC) to promote financial inclusion through the digitalization of financial services. Through this agreement, the bank has launched numerous products that are highly demanded by the local market: credit cards, remittances and personal loans, among others, as mentioned by Ualá’s press release.
"The acquisition of ABC Capital will allow Ualá to accelerate the launch of products in Mexico, our largest growth market. The commitment to the country is absolute, so we need a bank to make the country's most complete financial ecosystem consistent with our offerings in Colombia and Argentina. This is a huge step for Ualá's regional development, as it confirms that with regulated entities, we can offer a unique and differential proposal that combines the best of technology with all the variety of products needed for the digitalization of Latin American economies," says Pierpaolo Barbieri, Founder and CEO, Ualá.
During the year, the company made several announcements aligned with regional expansion and growth. In June 2022, it approved the purchase of 100% of the shares of Wilobank, the first digital bank in Argentina, through which it obtained a banking license in that country. In addition, in January 2022, Ualá began operations in Colombia, backed by a financing company license. With operations in Argentina, Mexico and Colombia, Ualá is one of the fastest-growing companies in Latin America.
Barbieri adds that the company has 500,000 customers in Mexico and expects to grow to more than 4 million in just three years.