This post is also available in: Español (Spanish)
Contxto – Imagine a world where all of your banking needs can be fulfilled from the palm of your hands. Just take a look at what Fondeadora has accomplished. Others are taking notice, and rightfully so. Earlier this week, IGNIA invested US$1.5 million into the digital bank changing the way Mexicans save and spend money.
How is Fondeadora unique?
You may think Fondeadora is too good to be true, but rest assured, it’s pretty legitimate. The Mexico City startup allows users to manage finances, open bank accounts and obtain debit and credit cards through the app.
Here in Mexico, this is especially relevant considering most citizens don’t have access to traditional banks.
“Great success stories often come from atypical companies in nascent markets,” said Norman Müller, a co-founder of Fondeadora. “In Mexico, 60 percent of the population doesn’t have a bank account, while the remaining 40 percent hasn’t received the attention it deserves from current competitors.”
IGNIA’s investment is betting that Fondeadora’s digital banking solution can be the key to generating a financial inclusion tsunami of banking in Mexico. We are now in a privileged strategic position with great potential to become the regional leader in neo-banking.
What will Fondeadora do with the new capital?
In terms of vision, the company aspires to launch a universally free banking ecosystem. To accomplish this, Fondeadora has created an innovative method where users can make credit card transactions without being a member of a major national bank.
The firm intends to continue developing its digital platform as well as launch an upcoming marketing campaign. To date, Fondeadora has over 400,000 users in addition to 15,000 people on the waiting list. Pretty much anyone in Mexico can download the app and request an international MasterCard.
To be honest, I personally believe the traditional banking system will become obsolete sooner than later if they don’t manage to catch up with current technologies and improved customer service attention, especially here in Mexico. Long lines can be tedious, not to mention the bureaucracy, wasteful paper trails or fees associated with maintaining a savings account.
People across Latin America experience the brunt of banking inefficiencies on a daily basis. There’s no denying that banking can be excruciatingly frustrating. Simply put, Fondeadora has the right idea in mind.