Credijusto, the leading technology-enabled lending platform in Mexico, announced today the acquisition of Banco Finterra, a Mexico City-based bank that specializes in financing solutions for small businesses and the agriculture sector. Credijusto is the first Mexican fintech to acquire a regulated bank, becoming the only neobank in Latin America focused on serving small and medium-sized enterprises (SMEs).
The company’s expansion reflects a global trend of fintech firms acquiring regulated banks to enable more diversified product offerings. The acquisition doubles the size of its business and quickly accelerates Credijusto’s growth. Over the past year, Mexico has seen strong demand for technology-enabled lending solutions as COVID-19 created heightened need for credit and traditional banks have struggled to adapt to the new digital reality. With the addition of Banco Finterra, the company is positioned to become the largest financial services provider to small businesses in Mexico as well as the leader in cross-border banking solutions between the U.S. and Mexico. As the largest trading partner to the U.S., Mexico is an increasingly important economic and strategic ally.
“Our acquisition of Banco Finterra creates the first truly digital banking platform for Mexican SMEs,” said Allan Apoj, Co-CEO of Credijusto. “This acquisition marks a major milestone in Mexico and the region, and we are proud to be revolutionizing the future of banking in Latin America.”
The combined businesses have lent over $2 billion to underserved SMEs, while Credijusto has raised more than $400 million in equity and debt from a leading group of global investors including Goldman Sachs, Credit Suisse, Point72 Ventures, New Residential Investment Corp., Kaszek, QED Investors and John Mack. In a market where banks are slow to innovate and focused on corporate clients, Credijusto, which was founded in 2015, has developed a multi-product offering using a combination of cutting-edge software design, innovative applications of data science, and advanced internal processes. The company’s better-priced products, faster delivery and superior customer experience help to address financial inclusion and a $164 billion SME financing gap in the Mexican market.
“By combining our proprietary software and data science expertise with Finterra’s banking capabilities, we are building a next generation financial services business,” said David Poritz, Co-CEO of Credijusto. “Our acquisition will also enable a digital cross-border experience to the thousands of businesses engaged in commerce between the U.S. and Mexico, an opportunity that we see as a major driver of growth for Credijusto.”
Mark McCoy, CEO of Banco Finterra, said: “We are very excited for this next phase of the bank and the benefits to come for Mexican businesses, leveraging Credijusto’s technology, agility and service.”
With 6 million SMEs in Mexico, which generate over 50 percent of the country’s GDP and employ over 70 percent of the active workforce, Credijusto will continue to play a crucial role in the growth of Mexico’s economy.
Founded in 2015, Credijusto is a financial technology company focused on lending to the underserved and rapidly growing small and medium-sized enterprise (SME) market in Mexico — via products that are superior in price, speed of delivery and quality of customer experience. The company uses a combination of cutting-edge software design, innovative applications of data science and advanced internal processes for decision making and product structuring. Credijusto is backed by a world-class group of institutional investors, including Goldman Sachs, Credit Suisse, Point72 Ventures, New Residential Investment Corp., Kaszek, QED Investors and John Mack.
About Banco Finterra
Banco Finterra is a regulated bank based in Mexico City and known for its comprehensive services for the agricultural sector and small and medium-sized enterprises (SMEs) in Mexico. The bank provides high-quality credit products and flexible investment products to SMEs. Banco Finterra was established in 2016 as part of the transformation of Grupo Finterra S.A de C.V., Sociedad Financiera de Objeto Múltiple.