Latin America's growing open banking initiatives – supported by the government and a large underserved consumer base – are creating an appealing opportunity for investors to improve the financial well-being of marginalized individuals.
One of the notable players in the LatAm financial landscape aiming to capitalise on this is fintech start-up Finerio Connect, based in Mexico City, which has secured $6.5 million in funding to advance its open finance platform.
The funding will also be used to make key hires, expand its API hub into two additional countries, and enhance overall usage.
Launched at TechCrunch Disrupt's Startup Battlefield Latin America in 2018 by co-CEOs Nick Grassi and José Luis López, the company specializes in personalized financial products and services.
Its platform offers personalized financial dashboards, data categorization and analytics, and assistance with Open Banking and Open Finance compliance. It empowers banks to provide tailored financial products, make data-driven lending decisions, and ensure regulatory compliance, particularly in the Latin American market.
Currently, Finerio works with over 120 financial institutions and fintechs. Last year, it introduced an API hub in collaboration with Visa and OzoneAPI, providing digital payment, credit, and personal finance management services. In the last 18 months, its API usage has surged by 700%, and Finerio aims to expand its reach to another 40 financial institutions within the next year. It posted over $1 million in annual recurring revenue in the past year.
The funding round was led by Third Prime with participation from strategic investors, including Visa, Bancolombia Ventures, Krealo, Alaya Capital, Gaingels, Plug and Play, Winklevoss Capital, and angel investors associated with Guiabolso, Dock, and ClassPass.