Nasdaq Expands Digital Bank FinTech Presence in Latin America
Expanded partnership with Nubank reflects
rapid growth of banking and payment services in Latin
America
Over half of Nasdaq’s Latin American banking
clients have expanded their technology partnership in the last 12
months
Nasdaq’s financial technology solutions
simplify regulatory compliance and reduce time to market across
multiple jurisdictions
NEW YORK and SAO PAULO, Sept. 23, 2024 (GLOBE NEWSWIRE) --
Nasdaq today announced it has expanded its digital bank financial
technology presence in Latin America, having agreed to provide its
AxiomSL regulatory reporting solution to Nubank, a leading digital
bank with over 100 million customers across Brazil, Mexico, and
Colombia.
The agreement extends Nasdaq’s existing partnership with Nubank
which includes providing the technology that underpins the bank’s
treasury function - managing its fixed income and money market
operations - and now the bank’s regulatory reporting obligations in
Colombia. It also reflects the accelerating demand for third-party
financial technology solutions in Latin America, driven by the
rapid growth and development of digital banking in the region and
the competitive need for technology that can support a short time
to market for new products and services.
Nasdaq has over 50 banking and payment services clients in Latin
America, comprising a broad range of digital and traditional banks,
local and regional players as well as tier one global banks. The
technology provided includes Nasdaq AxiomSL, which supports
financial and regulatory reporting requirements across 55 countries
and 110 regulators, and Nasdaq Calypso, which provides the SaaS
technology platform that underpins banks’ treasury, risk, and
collateral management workflows.
The comprehensive range of Nasdaq’s mission critical technology
across the fabric of the Latin American financial system, alongside
extensive partnerships with the region’s market infrastructure
operators, helps foster deep customer relationships and insight
into their most complex operational challenges. In the last 12
months, over half of Latin American clients adopting Nasdaq’s
AxiomSL and Calypso technology have sought to expand their
partnership, alongside strong growth in new customer numbers.
Ed Probst, Senior Vice President, Regulatory Technology at
Nasdaq said: “Digital banking services in Latin America are
experiencing a period of extraordinary development, with online
marketplaces, open banking and innovative technology combining to
empower a new generation of consumers. Nasdaq’s technology is
helping to underpin the maturation of the industry, with proven
regulatory solutions substantially reducing time to market and
providing a competitive advantage in such a fast-paced industry. We
welcome the opportunity to expand our partnership with Nubank,
alongside many other clients in the region, to support their
ambitious growth trajectory.”
Navigating regulatory complexity across Latin American
banking services
The Latin American financial system is undergoing a radical
transformation with the number of fintech startups established over
the last six years having grown more than 340%, according to a
recent report by the Inter-American Development Bank (IDB) and
Finnovista1. This trend is also reflected in a study
published by McKinsey & Company which highlights the soaring
popularity of noncash payments, with cash no longer representing
the preferred payment method2. Latin America’s
relatively young demographic is proving a catalyst for innovation
and digital adoption.
Alongside this shift, the region’s regulatory frameworks are
undergoing a period of continued enhancement, which is helping to
bolster the integrity of the system and unlock new areas of open
finance and digital banking. Collectively these drivers are helping
to unlock significant growth opportunities for financial services
providers, including amongst previously unbanked people and
companies.
Nevertheless, the regulatory environment remains deeply complex
for companies seeking to access multiple jurisdictions and
regulatory regimes. For example, Brazilian requirements typically
focus on the types of products and services offered while Mexico
has a specific license for “fintechs”. In Colombia, several small
and digital banks operate as a “Financing Company”, which carry
different requirements to “Banks and Financial Corporations”. This
pattern is replicated across Latin America where the confluence of
innovation, rapid growth, and regulatory complexity is driving
traditional and digital banks to seek third party technology
providers to meet their regulatory needs. Nasdaq’s advanced
technology allows these banks to keep pace with inherent regulatory
risks as they look to scale responsibly.
In addition to Nubank, other digital bank and payment companies
Nasdaq has expanded its services with include Mercado Libre, Latin
America’s leading e-commerce and digital payments company, C6 Bank,
a full-service digital bank in Brazil, and Bankaool, the first bank
to receive a license from the Mexican government to provide
digital-only services.
As a scaled platform partner, Nasdaq draws on deep industry
experience, technology expertise, and cloud managed service
experience to help 3,500+ banks, brokers, regulators, financial
infrastructure operators, and buy-side firms solve their toughest
operational challenges while advancing industrywide
modernization.
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a leading global technology company
serving corporate clients, investment managers, banks, brokers, and
exchange operators as they navigate and interact with the global
capital markets and the broader financial system. We aspire to
deliver world-leading platforms that improve the liquidity,
transparency, and integrity of the global economy. Our diverse
offering of data, analytics, software, exchange capabilities, and
client-centric services enables clients to optimize and execute
their business vision with confidence. To learn more about the
company, technology solutions, and career opportunities, visit us
on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.
Media Contact:
Andrew Hughes
+44 (0)7443 100896
Andrew.Hughes@nasdaq.com
+++
Camille Stafford
+1 (234) 934 9513
Camille.Stafford@nasdaq.com
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©2024 Nasdaq, Inc. The Nasdaq logo and the Nasdaq ‘ribbon’
logo are the registered and unregistered trademarks, or service
marks, of Nasdaq, Inc. in the U.S. and other countries. All rights
reserved. This communication and the content found by following any
link herein are being provided to you by Nasdaq, Inc. and/or
certain of its subsidiaries (collectively, “Nasdaq”), for
informational purposes only. Nasdaq makes no representation or
warranty with respect to this communication or such content and
expressly disclaims any implied warranty under law. At the time of
publication, the information herein was believed to be accurate,
however, such information is subject to change without notice.
Nothing herein shall constitute a recommendation, solicitation,
invitation, inducement, promotion, or offer for the purchase or
sale of any investment product, nor shall this material be
construed in any way as investment, legal, or tax advice, or as a
recommendation, reference, or endorsement by Nasdaq.
Cautionary Note Regarding Forward-Looking
Statements:
Information set forth in this press release contains
forward-looking statements that involve a number of risks and
uncertainties. Nasdaq cautions readers that any forward-looking
information is not a guarantee of future performance and that
actual results could differ materially from those contained in the
forward-looking information. Forward-looking statements can be
identified by words such as “can” and other words and terms of
similar meaning. Such forward-looking statements include, but are
not limited to, statements related to the benefits of Nasdaq’s
AxiomSL and Calypso technology solutions. Forward-looking
statements involve a number of risks, uncertainties or other
factors beyond Nasdaq’s control. These risks and uncertainties are
detailed in Nasdaq’s filings with the U.S. Securities and Exchange
Commission, including its annual reports on Form 10-K and quarterly
reports on Form 10-Q which are available on Nasdaq’s investor
relations website at http://ir.nasdaq.com and the SEC’s website at
www.sec.gov. Nasdaq undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
1
https://www.iadb.org/en/news/study-fintech-ecosystem-latin-america-and-caribbean-exceeds-3000-startups
2
https://www.mckinsey.com/industries/financial-services/our-insights/the-rapid-evolution-of-payments-in-latin-america
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