Nubank is a Brazilian digital bank that doesn’t have branches and works entirely via Web. In the coming months, it could start with its expansion’s strategy in South America. It will land on Argentine soil, according to some reports from specialized press.
Currently, Argentina is living a great moment for the fintech sector. There are 130 companies in the area. Last year, they reported transactions for 6K million dollars. This trend is expected to continue throughout 2019.
Fintech market is growing
Argentinian Fintech boom has partly due to the low level of bank penetration. Less than half of the population owns a bank account. Those who are banked at least 70% do not use financial products frequently. These are users who receive their payment Payroll in an account but withdraw the funds immediately and do not own other products.
In this context, it is not surprising that foreign fintech companies are interested in the Argentinian market. Nubank is the largest digital bank outside the Asian continent. It is also expected to be one of the next unicorn companies, that is, to reach a value of one billion dollars on the continent.
The experts consider that
It is expected that the financial sector will become more competitive and
lead to benefits for users after Nubank starts operations in Argentina.
Competition in the banking sector
Nubank became the country’s sixth largest credit card provider over national banks in Brazil. Currently, there is a waiting list to access the services of the virtual bank. Credit cards have reduced their costs since that.
However, traditional banking also seeks to attract customers to its digital branches. This year Santander Group plans to launch Openbank, which in Spain has at least one million users. Other similar services seek to become attractive alternatives for users.