Fintech Platform Nequi Plans to Get Into the Cryptocurrency Business in Colombia

Nequi, a fintech neobank which allowed Colombian citizens to test all-digital financial services, has announced its plans for expansion after having parted ways with Bancolombia, the bank that gave it its origin. These plans include an entry into the cryptocurrency world while complying with the limits set by current regulators.

Colombian Nequi to Enter Crypto Market

More and more neobanks are considering including cryptocurrencies in their service offerings. This is the case with Nequi, a fintech platform that is reportedly considering making an entrance into the crypto sector in Colombia. The platform, which has more than ten million customers, is now in talks to become an independent company and platform, separating itself from Bancolombia.

The announcement was made by Nequi’s CEO, Cipriano Lopez, in a webinar with Credicorp Capital, a holding company that also lends financial services to its customers. Lopez explained that Nequi wants to make a direct entry into the market, with compliance being one of its first concerns.

Nequi is currently awaiting regulatory approval to become an independent financial company in order to apply the improvements and new plans envisioned.

Strategy, Pandemic, and Growth

The inclusion of cryptocurrency and other new features in the app is part of Nequi’s strategy to keep growing and adding new users. The platform managed to grow enormously even during the pandemic, having gained over four million customers during this time due to its all-digital business model.

This new round of changes to the app are expected to be executed in Q3 2022, with the separation from Bancolombia being the catalyst for the new phase of its financial products. The CEO also declared that the app would be introducing new services that will allow Colombians to top up public transportation cards, make ticket purchases — among other services — and to power the adoption of the platform.

Lopez is certain that the company will be profitable in the next months, and these plans are directed to achieve this goal. But the company is not yet profitable, even after having received subsidies from the government due to its digital nature. The new strategy would include giving credits to heavy users of the platform that have sufficient liquidity to pay for them.

Colombia is currently seen as a growing crypto hub by companies like Bitso, a Mexico-based exchange that announced its expansion to the country in February.