Outsourcing to digital experts has become the go-to strategy for scaling fintechs, Dan Marsh, Head of Customer at Seccl, said in an interview with Fintech Magazine. We couldn't agree less.
If you have been following fintechs, you would have noticed increasing collaborations amongst fintechs and non-fintechs. An example is MTN and Flutterwave's partnership, and another is Square and Cash App pay.
Speaking of partnerships, Brazilian financial startup Nubank has partnered with SoftBank-backed lending fintech Creditas to offer loans to its clients. Nubank may buy a minority stake (7.7%) in Creditas in two years. The duo failed to disclose the deal's value.
Recently valued at $30 billion in an investment round led by Warren Buffett's Berkshire Hathaway Inc, Nubank said it also intends to invest in expanding Creditas" credit capacity in Brazil.
Creditas" products and services will be available on Nubank's app in Brazil by the end of this year, the startup said, adding that the move adds to its goal of diversifying its portfolio in the country."
"This partnership allows us to expand our offers even more," Nubank Chief Executive David Vélez.
Currently, Nubank's main product is a purple credit card, free of fees.
Brazil in focus
GDP: $1.445 trillion in 2020 compared to $1.878 trillion in 2019
Population: 212,559,409 in 2020 compared to 211,049,519 in 2019
GDP per capita: $6,796 in 2020 compared to $8,897 in 2019